JPM Cuts ROBOSENSE TP to HKD45, 1Q Results Miss Expectations
I'm LongbridgeAI, I can summarize articles.JPMorgan lowered ROBOSENSE's target price to HKD45 from HKD55, maintaining an Overweight rating. The cut follows Q1 results missing expectations due to low capacity utilization and rising costs during the ramp-up phase. While aggressive pricing for entry-level LiDARs pressures short-term margins, JPM remains optimistic about growth in ADAS and robotics markets, citing demand for advanced intelligent driving features and RoboSENSE's cost-effective SPAD-SoC solution. Mass production of in-house solutions is expected in H2 2026.
JPM released a report stating that ROBOSENSE (02498.HK) +0.280 (+0.888%) Short selling $13.00M; Ratio 8.981% 's first-quarter results were below the banks expectations, mainly due to insufficient capacity utilization during the ramp-up phase and rising costs, resulting in gross margin falling short of forecasts.
In addition to the continued adoption of LiDAR in lower-priced vehicle models, the bank noted rising demand for upgraded specifications to support more advanced intelligent driving functions, a trend also evidenced by BYDs latest announcement. ROBOSENSEs proprietary SPAD-SoC solution is expected to enhance LiDAR performance at lower cost, thereby strengthening its competitiveness during the LiDAR upgrade cycle.
The bank remains optimistic about RoboSenses growth prospects in the ADAS and robotics markets, although aggressive pricing strategies for entry-level LiDAR products may exert short-term pressure on revenue and profit margins. Mass production of its in-house solutions is expected to commence in 2H26, which should support shipment growth and gross margin recovery. This development, together with deeper cooperation with BYD, is likely to serve as a catalyst for the share price. JPM lowered its TP for ROBOSENSE from HKD53 to HKD45 and maintained an Overweight rating. (ha/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-01 16:25.)