Takeaway from 2026 Investor Day &Technology Open Day
Takeaway from 2026 Investor Day &Technology Open Day Target PriceUS$29.30Up/Downside26.0%Current PriceUS$23.25 We attended Hesai Group (Hesai)’s 2026 Investor DayandTechnology OpenDay.During the events,Hesai: 1)unveiled Picasso SPAD-SoC,the world’s first6D full-color LiDAR ultra-sensitive chip, and announced the ETX series LiDARwill be fully upgraded with the Picasso SPAD-SoC, supporting up to 4,320 linesoffull-color 4K ultra-high-definition perception,with mass production anddelivery scheduled for2H26; 2) announced a strategic upgrade from “spatialperception”to“spatial intelligence”,and showcased Kosmo,a spatialintelligence AI hardware product, which is expected to be officially launched in2H26;3)announced expansion into the newbusinessfield of robot powermodules, viewing it asone of thecore infrastructuresof the physical AI era.Regarding business deploymenton becoming a key enablerin physical AI era,Hesaiwill focus onenhancingimmersive interactive experiencesin thefirstphase, while the second phase will be dedicated to enabling physical AI training.WerateBUY on Hesai with atargetprice of US$29.3 based on 7.5x 2026E P/S. China Software & IT Services Saiyi HE, CFA(852) 3916 1739hesaiyi@cmbi.com.hk Ye TAO, CFA(852) 3850 5226franktao@cmbi.com.hk Wentao LU, CFAluwentao@cmbi.com.hk Picasso:achieves the fusion of color perception and distancemeasurement at the hardware level.Picasso SPAD-SoC supports up to4,320 laser channels and 4K ultra-high-definition perception. According toHesai, the photon detection efficiency (PDE) of Picasso has exceeded 40%,reaching an industry-leading level. The new ETX LiDAR, powered by thePicasso chip, will integrate spatial and color detection, and is expected toenter mass production in 2H26. Shuyin GUO(852) 3916 3716guoshuyin@cmbi.com.hk Kosmo: targetsto support the development of physical AI systems.Kosmo is designed to collect real-world 3Ddata for creating “digital twins”of physical spaces. The device aims to support the development of physicalAI systems, including humanoid robots, by enabling a better understandinginreal-world environments. The product will initially focus on small businesscustomers, before targeting the broader consumer market over the mediumto long term, supported by scale effects and lower supply-chain costs. TPof US$29.3 based on 7.5x 2026E P/S.For 2026E,we expect101%/46% YoY growth in LiDAR shipment volume/total revenuefor Hesai.Key catalysts include: 1) faster-than-expected adoption of L3 vehicles,which could increase LiDAR units per vehicle and drive higher dollar contentper car; 2) ramp-up in physical AI-related product revenue and increasingcontribution from international ADAS expansion. Source:FactSet Source:Company data, CMBIGM Disclosures& Disclaimers Analyst CertificationThe research analyst who is primary responsible for the content of this research report, in whole or in part, certifies thatwith respect to thesecurities or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission)(1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to the date of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issueof this report; (3) serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies coveredin this report.CMBIGM or its affiliate(s) have investment bankingrelationship with the issuers covered in this report in preceding 12 months. CMBIGM Ratings : Stock with potential return of over 15% over next 12 months: Stock with potential return of +15% to-10% over next 12 months: Stock withpotential loss of over 10% over next 12 months: Stock is not rated byCMBIGM BUYHOLDSELLNOT RATED :Industry expected to outperform the relevant broad market benchmark over next 12 months:Industry expectedto perform in-line with the relevant broad market benchmark over next 12 months:Industry expected to underperform the relevant broad market benchmark over next 12 monthsCMB InternationalGlobal MarketsLimited Address:45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800CMB InternationalGlobal MarketsLimited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a wholly ownedsubsidiary ofChina Merchants Bank) Important DisclosuresThere are risks involved in transacting in any securities. The information contained in this report may not
