Country Daily
China Economic Activity/China Money Supply/China Automobile Sector/Hesai Group/RoboSense Technology/China Overseas Land & Investment_Li Ning
Top Stories
Sector Update | Automobile
We initiate coverage on China's LiDAR sub-segment with BUY ratings on Hesai and RoboSense. Chinese suppliers have slashed LiDAR costs from over US$9,000 to below US$300, fuelling a 49% five-year shipment CAGR to 2030. Hesai and RoboSense form a 60% duopoly, driven by ADAS and robotics demand. Both are at profit inflections: Hesai turned net profitable in 2025, and RoboSense should follow in 2026. We set DCF targets of HK$33.00 and HK$50.00 respectively. Maintain MARKET WEIGHT on the automobile sector.
Initiate Coverage | Hesai Group (2983 HK/BUY/HK$15.77/Target: HK$33.00)
Hesai is a global LiDAR leader with over 30% of the ADAS market and over 60% of the robotaxi market. Its chipised design, platformisation and high automation rate drive cost leadership, while new high-value products and a strategic shift toward spatial AI underpin future growth. It has secured major contracts with key OEMs and robotaxi operators. We expect net profit to grow at a 46% three-year CAGR through 2028. Initiate coverage with BUY and a DCF-derived target price of HK$33.00.
Initiate Coverage | RoboSense Technology Co (2498 HK/BUY/HK$22.56/Target: HK$50.00)
RoboSense has evolved from a pure LiDAR hardware supplier into an AI-driven robotics platform with full-stack capabilities. Its self-developed SPAD-SoC and 2D VCSEL chips underpin cost leadership in digital LiDARs. With over 9m units in backlog and a pivot to physical AI via AC-series sensors, we expect a turnaround to a Rmb91m net profit in 2026 and a 173% two-year CAGR through 2028. We initiate coverage with a BUY and DCF-derived target price of HK$50.00.
Technical Analysis
Meituan | 3690 HK
Support levels: HK$76.65/HK$70.20
Resistance levels: HK$91.35/HK$107.00
CK Hutchison | 1 HK
Support levels: HK$67.75/HK$65.95
Resistance levels: HK$80.15/HK$86.00
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: https://research-api.uobkayhian.com/assets/disclaimer/0e6d602f-adeb-45f8-9dea-5d5591daae87, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
