STOCKS | Goldman Sachs Maintains Buy Rating for Hesai Technology

Goldman Sachs has maintained its 'buy' rating for Hesai Technology, with a target price of HKD 273 for its Hong Kong shares and USD 35 for its U.S. shares. According to Jin10, following the release of first-quarter results for 2026, the company provided order guidance indicating that revenue from its SGI business is expected to slow to RMB 1 billion by 2027-2030 due to uncertain market conditions. The bank has raised its net profit forecast for 2026-2030 by up to 14%, thus maintaining its target price and rating. The company's first-quarter revenue and gross profit met expectations, while EBIT exceeded Goldman Sachs' expectations by 47% and market expectations by 63%, primarily due to reduced operating expenses. Hesai Technology also launched its SGI segment, which is expected to generate approximately RMB 100 million in revenue by 2026 and aim for RMB 500 million by 2027. The SGI segment is anticipated to achieve higher recurring revenue and profit margins through software and platform usage. Looking ahead, the bank expects gradual improvements in sales volume, profit margins, and earnings levels. For the full year 2026, revenue is projected to grow by 50%, with a gross margin of 40%. Due to ongoing operational leverage, EBIT is expected to increase by 139% year-on-year, with the EBIT margin rising from 9% in 2025 to 15%.