禾赛：2026年第一季度基本符合预期；物理AI作为长期驱动因素尚未被定价

Dien Wang, Ph.D.+852 2123 2622dien.wang@bernsteinsg.com Jay Huang, Ph.D.+852 2123 2631jay.huang@bernsteinsg.com Weibin Liang, Ph.D.+852 2123 2666weibin.liang@bernsteinsg.com Price Target Hesai: 1Q26 broadly as expected; Physical AI as a long-term driveryet to be priced in Hesai reported its 1Q26 results without big surprise, as both revenue and net profit camewithin guidance. The company slightly raised its 2Q revenue growth outlook to 20%–27% YoY (previously 13%–27%) and maintained its full-year targets unchanged (revenue:RMB4.2-4.6bn, net profit: RMB500-700mn). Our updated model can be found here. In 1Q26, Hesai’s shipment volumes for ADAS LiDAR and robotic LiDAR grew by 142% YoYand 138% YoY, respectively. According to Gasgoo, Hesai maintained its leading position inADAS LiDAR in 1Q26, with a 51% volume share in China (vs. RoboSense at 16%, Huawei at23%, and Seyond at 10%). It is encouraging to see Hesai formally announce its partnershipwithMercedes-Benzacross Europe and China, as well as secure new design wins forXiaomi’s overseas models. We view this as a milestone in Hesai’s global expansion,although the near-term contribution should be limited. Beyond its LiDAR business, Hesai introduced a new segment,Strategic Growth Initiatives(SGI), targeting the “eyes” and “muscles” of Physical AI, with a revenue target of ~RMB100million in 2026. In April, the company unveiled a series of products based on its new full-color chip (here) and highlighted the great potential of its spatial intelligence device,Kosmo. However, it seems investors still lack clarity on the necessity and value-add of thoseinnovated products, including performance improvements vs. the existing roadmap, practicaluse cases, and the addressable market size,suggesting that the upside has yet to bepriced in. Meanwhile, we see the LiDAR industry moving toward a natural inflection point, asOuster (OUST.US, not covered) also unveiled full-color LiDARs based on a similar roadmapin early May (here). With more players adopting this approach, investors may gain greatervisibility on Hesai’s strategic direction going forward. Investment Implications Reiterate OP. We revise down our DCF-based PT to USD 30 (was 32) and HKD238 (was 249)by lowing GP margin to reflect fast rising contribution from ADAS LiDAR. The new TP impliesa 39x forward PE at end-2026. DETAILS EXHIBIT 6:Long-range ADAS LiDAR in China: Market share breakdown APPENDIX - FINANCIAL FORECASTS Source: Company reports, Bernstein estimates and analysis EXHIBIT 12:Balance Sheet BERNSTEIN TICKER TABLE I. REQUIRED DISCLOSURES References to "Bernstein" or the “Firm” in these disclosures relate to the following entities: Bernstein Institutional Services LLC(April 1, 2024 onwards), Sanford C. Bernstein & Co., LLC (pre April 1, 2024), Bernstein Autonomous LLP, BSG France S.A. (April 1,2024 onwards), Sanford C. Bernstein (Hong Kong) Limited盛博香港有限公司,Sanford C. Bernstein (Canada) Limited, SanfordC. Bernstein (India) Private Limited (SEBI registration no. INH000006378), Sanford C. Bernstein (Singapore) Private Limited,Sanford C. Bernstein Japan KK(サンフォード・C・バーンスタイン株式会社)and analysts employed by Société GénéraleAfrica Technologies & Services to produce Bernstein research under a Global Services Agreement in place between Bernsteinand Société Générale. Bernstein is part of a joint venture between Société Générale (SG) and AllianceBernstein, L.P. (AB). Unless specifically notedotherwise, for purposes of these disclosures, references to Bernstein’s “affiliates” relate to both SG and AB and their respectiveaffiliates. VALUATION METHODOLOGY Hesai Group We use DCF as the primary valuation method. We set target prices at USD 30.0 and HKD 238.0 for its ADR and H-Share,respectively, based on WACC of 8.3% and terminal growth rate of 3.0%, respectively. They reflect our long term forecast of thecompany’s existing core business and rising contribution from robotics. We use PE method as a reference, with our target priceimplies a 39x forward PE at end-2026. RISKS Hesai Group Downside risks are: 1) serious car accidents caused by LiDAR failures; 2) escalated sanctions from the US government; 3) loss ofmarket share at key clients; and 4) slower-than-expected improvements in profitability. RATINGS DEFINITIONS, BENCHMARKS AND DISTRIBUTION EQUITY RATINGS DEFINITIONS Bernstein brand The Bernstein brand rates stocks based on forecasts of relative performance for the next 12 months versus the S&P 500 forstocks listed on the U.S. and Canadian exchanges, versus the Bloomberg Europe Developed Markets Large and Mid Cap PriceReturn Index EUR (EDME) for stocks listed on the European exchanges and emerging markets exchanges outside of the AsiaPacific region, versus the Bloomberg Japan Large and Mid Cap Price Return Index USD (JPL) for stocks listed on the Japaneseexchanges, and versus the Bloomberg Asia ex-Japan Large and Mid Cap Price Return Index (ASIAX) for stocks listed on the Asian(ex-Japan) exchanges -u