According to a research report published by Citigroup, Hesai's net profit for the third quarter was 81 million yuan; after excluding one-time income of 185 million yuan in the third quarter of 2025 and the impact of foreign exchange, the bank estimates that the core net profit for the third quarter increased 60% year-on-year to 100 million yuan. The gross profit margin was 41%, up 0.9 percentage points from month to month, slightly better than expected. Benefiting from an improved product portfolio, the comprehensive average sales price of lidar increased 3% month-on-month to 1,340 yuan; management guided the comprehensive gross margin of about 40% for the full year of 2026. Looking ahead to 2027, the bank expects revenue from humanoid robot actuators to increase 160% year-on-year, driven by an increase in shipments from about 70,000 units in 2026 to about 180,000 units in 2027, and an increase in average sales prices driven by the volume of full-body actuators. Management expects lidar pricing and profit margins to stabilize as industry competition becomes more rational. The bank maintains its “buy” rating. The target price for H shares is HK$21.4 and the target price for US stocks remains unchanged. It believes that with the company's ASIC-based technology and cost advantages, leading market share, and a more stable financial situation compared to its peers, Hesai will be able to seize the momentum of sales growth in the radar industry.

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