Hesai Group: A Mixed View

Apr. 25, 2023 12:48 PM ETHesai Group (HSAI) StockOUST, HSAI1 Comment

Summary

  • Hesai Group's key investment merits are the strong growth potential of the ADAS LiDAR market and the company's chance to secure new business with international customers.
  • The key negatives for Hesai Group are the potential for gross margin compression and the stock's unattractive valuations.
  • I have a mixed view of Hesai Group, and this translates into a Hold rating for Hesai Group stock.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »

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Elevator Pitch

I assign a Hold rating to Hesai Group (NASDAQ:HSAI) shares.

My view of Hesai Group is mixed. On one hand, I have a positive opinion of the ADAS LiDAR industry's growth prospects and the company's opportunity to expand its

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This article was written by

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The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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