Hesai Group gets CSRC nod for Hong Kong listing

Hesai Group gets CSRC nod for Hong Kong listing

Hesai Group, a leading provider of three-dimensional light detection and ranging (LiDAR) solutions, has received approval from the China Securities Regulatory Commission (CSRC) to list its shares on the Hong Kong Stock Exchange. This development comes after the company initiated coverage with several major brokerages, including UBS Group, Morgan Stanley, and Jefferies Financial Group, all of which have issued positive ratings and price targets for the stock [1].

UBS Group, in a recent report, initiated coverage on Hesai Group with a "buy" rating and a $35.00 price target, indicating a potential upside of 31.48% from the company's previous close. Morgan Stanley raised its rating to "overweight" and increased the price target to $26.00, while Jefferies Financial Group set a "buy" rating with a $29.30 price target. These ratings and targets reflect a consensus rating of "Buy" among analysts, with an average target price of $28.74 [1].

The approval from the CSRC is a significant milestone for Hesai Group, which has been actively expanding its operations in the LiDAR market. The company's LiDAR products are used in various applications, including advanced driver assistance systems in passenger and commercial vehicles, autonomous mobility services, and logistics robots. The Hong Kong listing is expected to provide Hesai Group with access to additional capital and investor base, which could support its growth and innovation efforts.

Hesai Group's recent financial performance has shown signs of improvement, with the company reporting a net margin of 4.00% and a return on equity of 3.18% in its latest quarter. However, the company's earnings per share (EPS) missed the consensus estimate, reporting $0.04 EPS compared to the expected $0.76. Despite this, the company's strong fundamentals and growth prospects have attracted institutional investors, with several large investors increasing their stakes in the company during the second quarter [1].

Institutional investors, including SG Americas Securities LLC, Franklin Resources Inc., Main Management ETF Advisors LLC, SBI Securities Co. Ltd., and Bessemer Group Inc., have shown confidence in Hesai Group's future prospects by increasing their holdings in the company. This support from institutional investors underscores the company's potential for growth and success in the LiDAR market.

As Hesai Group prepares for its Hong Kong listing, investors and financial professionals should closely monitor the company's progress and performance. The approval from the CSRC is a positive development, but the company's ability to execute its growth strategy and maintain its competitive position in the LiDAR market will be crucial for its long-term success.

References:
[1] https://www.marketbeat.com/instant-alerts/hesai-group-nasdaqhsai-now-covered-by-ubs-group-2025-08-19/