Hesai-W's stock plummeted 5.57% during intraday trading on Monday, reflecting continued investor unease.
The decline is primarily attributed to lingering market concerns over the company's first-quarter earnings quality. While Hesai recently reported Q1 revenue growth of 29.6% year-over-year, key profitability metrics raised red flags. The gross margin contracted from 41.7% to 39.1%, and the adjusted net profit plunged by over 88% compared to the prior quarter. A significant point of worry is the sharp decline in the average selling price of its LiDAR units, which occurred despite a 140.9% year-over-year surge in shipment volume, casting doubt on the sustainability of its earnings.
Although the company has secured a substantial exclusive LiDAR order and sell-side analysts maintain constructive long-term price targets citing strong full-year revenue growth expectations, the short-term pressure from the Q1 financial data continues to dominate market sentiment and weigh on the stock price.
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