Abstract
Hesai-W-NEW will report its second-quarter results on August 18, 2026 post-Market, with investors watching revenue momentum and margin traction amid accelerating automotive program ramps.Market Forecast
For the current quarter, the company’s guidance and market tracking point to revenue of approximately 877.67 million renminbi, implying a 28.97% year-over-year increase, with EBIT projected around 54.23 million renminbi and adjusted EPS at roughly renminbi 0.083 per share, a year-over-year decline of 79.66% that reflects per‑share optics after the recent share subdivision. There is no formal gross margin or net margin outlook disclosed; investors will focus on how scale, mix, and cost improvements bridge last quarter’s 39.09% gross margin toward sustained profitability.The main business remains LiDAR, where ramping automotive programs continue to underpin shipment growth and revenue visibility this quarter. The most promising revenue engine is the LiDAR segment itself, which generated 680.56 million renminbi last quarter, up 29.56% year over year, and is guided to expand toward 850–900 million renminbi this quarter in total company sales.
Last Quarter Review
In the prior quarter, Hesai-W-NEW delivered revenue of 680.56 million renminbi (up 29.56% year over year), a 39.09% gross profit margin, net profit attributable to the parent of 18.32 million renminbi with a 2.69% net profit margin, and adjusted EPS of renminbi 0.036 per share (down 39.58% year over year). A key financial highlight was EBIT of 20.87 million renminbi, representing a sharp year-over-year rebound, while quarter-on-quarter net profit growth moderated by 88.04% against a strong prior base.Main business execution was anchored by LiDAR, which accounted for 680.56 million renminbi in revenue, up 29.56% year over year, as ongoing mass-production programs translated into higher shipments and improving scale economics.
Current Quarter Outlook
Main business: LiDAR revenue trajectory and profitability bridge
Hesai-W-NEW set an 850–900 million renminbi revenue range for this quarter, and the latest tracking places the midpoint near 877.67 million renminbi, or 28.97% year-over-year growth. This progression rests on continued ramp of awarded automotive programs and normalized deliveries to key customers, which together have improved the company’s unit throughput and manufacturing utilization. From a profitability standpoint, management’s task is to carry last quarter’s 39.09% gross margin into a higher-volume quarter while mitigating the usual cost pressures from new project launches and customer pricing resets.Operating leverage will be a central watchpoint. With EBIT forecast at 54.23 million renminbi, the margin profile should benefit from a combination of higher absorption of fixed costs and cost-downs in materials and opto-electronic components. Mix remains a swing factor because different product families and customer configurations have variable margin profiles, but the stronger scale should help offset any adverse mix. While EPS is projected at renminbi 0.083 per share, year-over-year comparisons are complicated by the 8-for-1 share subdivision, which raises the share count and dilutes per-share metrics even if absolute profit improves.
Cash conversion and working capital discipline will also shape sentiment. As program ramps accelerate, receivables and inventory can temporarily expand; investors will look for evidence that collections remain tight and inventory turns are maintained. Efficient conversion supports sustained investment in capacity and R&D without pressuring liquidity, anchoring the company’s ability to execute on scheduled deliveries through the second half.
Most promising business: ADAS LiDAR ramps and new model standardization
Within the LiDAR portfolio, the ADAS-oriented products continue to offer the clearest near-term growth path as more nameplates adopt front‑lidar configurations. Recent wins and standard‑fit announcements, such as the program nomination for the ETX product at a major domestic automaker and standardization on select Xiaomi models, are set to translate into volume this year and into 2027. The timing of standard-fit adoption matters: even a single incremental model with full-trim standardization can materially lift unit shipments and revenue run‑rate, supporting the 850–900 million renminbi quarterly revenue range.The second-quarter setup is about operationalizing those wins. As each program moves from engineering validation to mass production, line yields and scrap rates typically improve, compressing cost per unit and lifting gross margin. This quarter should show whether schedule adherence is allowing the company to capture that early scale benefit without incremental expedite costs. The key marker is whether the LiDAR segment surpasses last quarter’s 680.56 million renminbi base by a wide enough margin to validate the upper half of guidance, with the most visible contributions coming from newly ramping ADAS configurations.
Visibility into the second half also improves if take‑rates on recently launched models trend higher than initial assumptions. If attach rates land at the top end of planning ranges, revenues can benefit even without new program announcements. Conversely, if customer sell‑through or production schedules soften, actual shipments could skew toward the low end of the guide. For this quarter, channel checks have indicated steady scheduling, which aligns with the midpoint to upper half of the revenue range.
Stock price drivers this quarter: revenue beat vs margin traction vs EPS optics
The stock’s reaction around the print is likely to track three variables: whether revenue lands at or above the midpoint of the 850–900 million renminbi range, whether gross margin holds near or improves from 39.09%, and how investors interpret per‑share earnings. A clean revenue beat with stable gross margin would reinforce the scale narrative and could overshadow EPS comparisons that are distorted by the share subdivision. Should EBIT land near 54.23 million renminbi, the implied operating margin improvement would support a view that fixed-cost leverage is materializing.EPS optics require context. The forecasted adjusted EPS of renminbi 0.083 per share carries a year-over-year decline rate of 79.66%, but that rate is influenced by a larger share count post‑split rather than a deterioration in underlying profitability. Management’s commentary on absolute net income and operating margin trends will therefore be critical for investors to parse through headline per‑share figures. A clear bridge from revenue growth and gross margin to EBIT and net income would help re-anchor valuation discussions around cash earnings instead of purely per‑share outputs.
Order momentum and program updates will also move the shares. Confirmation of additional nominations or earlier‑than‑planned standardizations would bolster revenue visibility into the second half, while any indication of elongated OEM launch timelines could pressure the near‑term trajectory. Investors will also keep an eye on expense growth, especially R&D and SG&A, to ensure that the company preserves operating discipline as it scales. Finally, any commentary on component cost deflation and supply chain normalization would feed into updated gross margin expectations for the coming quarters.
Analyst Opinions
Across recent months, published research coverage has skewed bullish, with a 4-to-0 ratio of positive to negative views in the accessible period. Citi reaffirmed a Buy rating and highlighted sensitivity to automotive program ramps and funding flows toward autonomous‑driving‑linked equities, setting a local target price that implies upside from prevailing levels. DBS kept a Buy rating on the US‑listed shares, citing improving earnings quality as volumes scale and cost discipline strengthens. CMB International reiterated Buy as well, underscoring shipment growth and expanding applications as the core drivers; the team noted that broader adoption in new model lines supports revenue visibility. A domestic financial institution maintained a Buy view with a high target that appears to reflect pre‑split pricing references, reinforcing the consensus positive stance.The majority opinion focuses on three threads. First, the revenue setup is constructive: the 850–900 million renminbi outlook triangulates with program ramps and model launches, and the latest tracking midpoint of 877.67 million renminbi fits with observed shipment momentum. Second, margin dynamics are improving with scale, evidenced by last quarter’s 39.09% gross margin and a forecasted step‑up in EBIT to 54.23 million renminbi this quarter; analysts expect manufacturing absorption and yield gains to bolster profitability even if product mix fluctuates. Third, EPS comparisons should be contextualized post‑split, and analysts indicate that absolute net income and operating margin will be better gauges of progress than year‑over‑year per‑share percentages.
On balance, the bullish case argues that the company is entering a more predictable revenue phase as awarded programs move through their early production curves. The primary near‑term catalyst is the degree of delivery upside and gross margin resilience shown in this quarter’s print relative to the mid‑point guide. If management demonstrates that cost‑downs and yield improvements can offset the usual early‑ramp inefficiencies, the step‑up in EBIT and the cash earnings trajectory should be clear. Commentary confirming solid second‑half model launch schedules and steady attach rates would further solidify this view.
Analysts also note two additional considerations. The first is the pace at which new customer nominations transition into scheduled SOPs and deliveries—an area where recent updates have trended positively, including new product nominations and standard‑fit placements that are scheduled to contribute by year end. The second is operating discipline: coverage expects the company to maintain R&D intensity while still delivering incremental operating leverage, using the volume scale to dilute fixed costs. The synthesis of these points translates into a predominant expectation for continued top‑line expansion with gradually improving operating metrics, even if EPS optics remain noisy due to the share subdivision.
In summary, the prevailing institutional view is bullish. The consensus anticipates a revenue outcome near the midpoint to higher end of guidance, an EBIT progression consistent with scale leverage, and qualitative updates on program timelines that validate continued growth into the second half. Should the company pair a revenue beat with stable or improving gross margin and provide clarity on post‑split EPS optics, analysts see room for the stock to reflect a stronger cash earnings path while the product ramp cycle continues to unfold.
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