Hesai Group, through with its subsidiaries, engages in the development, manufacture, and sale of three-dimensional light detection and ranging solutions (LiDAR) in Mainland China, Europe, North America, and internationally.
Positioning no disclosures inside 60 days, left as found
Options put/call open interest 1.42, read 2026-11-05
Ethical passes the values gate
Price12.84 USD
Fair value22.31
Ethical score70.0/100
Value readUndervaluedas of 5 Nov 2026
Our investment reviews on this name
2026-11-04Read Distribution12.07+6.4% to today Markdown gives way to Distribution after a 31% slide in 5 weeks
2026-10-02Read Markdown17.37-26.1% to today ✓Accumulation gives way to Markdown first Markdown read since July
2026-09-01Read Accumulation17.08-24.8% to today Distribution gives way to Accumulation after a 14% rise in 4 weeks
2026-08-01Read Distribution15.00-14.4% to today ✓Markdown gives way to Distribution after a 17% slide in 4 weeks
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Hesai Group holds its Distribution at $12.84. Elevated stress, defensive posture warranted, held for 219 days.
As held on the ledger · 2026-11-05
Phase
Distribution · caution
Quantitative state
Elevated stress, defensive posture warranted, held for 219 days
Price at the screen
$12.84
Valuation
27.83 trailing · 15.81 forward price to earnings
Values screen
PASS· score 70.0
Beta
1.47
The Workings
Five Screens, Shown in Full
Full pass across all five screens. This security clears the Titan Ethical Standard: its business and its balance sheet both stay inside the lines.
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
8.88%
Below 33%
Interest-bearing debt is just 8.9% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
24.70%
Below 33%
Cash held in interest-bearing accounts and securities is 24.7% of assets, under the one-third limit.
Pass
Receivables
25.98%
Below 49%
Money owed to the company is 26.0% of assets, under the 49% limit.
Pass
Revenue purity
4.30%
Below 5%
Only 4.3% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Clears, in Plain English
Hesai clears all five screens. Its business is in a permissible area, its interest-bearing debt is about 9%, inside the ~33% line, and interest is about 4% of its income, under the ~5% line, so it passes.
Read as at 2026-11-05. It updates when the underlying figures move, and past reads are kept below.
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Today HSAI passes the screen. If new figures move it to a fail, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
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What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads Undervalued vs our fair value, as of 5 Nov 2026: it trades at roughly a 42% discount to our $22.31 fair value, 21.90% revenue growth.
Fair value range in USD, drawn from the 2026-11-05 screen. The gold marker is the market price at the same screen. A 42.4% discount to the base estimate.
Where our models see it going: fair-value estimate $22.31, with a range of $13.96 to $25.65, dated to the 2026-11-05 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
LiDAR eyes for cars hit China limits
Picture a robotaxi fleet rolling out in Shanghai. Every vehicle needs precise 3D vision, and Hesai supplies those LiDAR units. The business is scaling fast with 30 percent revenue growth and a 15 percent profit margin, yet the opportunity rating sits at none.
We pass despite the 66 percent gap to our fair value of 24.89 dollars and a strong buy consensus from twenty analysts. Forward earnings sit at 16.7 times while return on equity is only 7 percent. That combination signals limited durability even though the ethical screen clears.
China exposure in a cyclical auto parts market adds real fragility. An unknown moat leaves room for bigger rivals to take share when spending slows. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The things to watch: it already moves more than the market on an average day; its business and earnings are exposed to China and to currency swings.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
HSAI trades on Nasdaq (the company is based in China). As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markdown to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 8.5% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are down 9%. Our forward projection puts the odds of a 10% gain over the next month near 42%. The street (21 analysts) rates it strong buy, with a mean price target of $30.
2026-10-28Markdown$13.19-1.3%Entry 9
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 1.3% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are down 9%. Our forward projection puts the odds of a 10% gain over the next month near 42%. The street (21 analysts) rates it strong buy, with a mean price target of $30.
2026-10-21Markdown$13.36-16.6%Entry 8
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 16.6% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 9%. Our forward projection puts the odds of a 10% gain over the next month near 42%. The street (21 analysts) rates it strong buy, with a mean price target of $30.
2026-10-14Markdown$16.01-7.8%Entry 7
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 7.8% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading neutral. Over the past year the shares are down 9%. Our forward projection puts the odds of a 10% gain over the next month near 42%. The street (21 analysts) rates it strong buy, with a mean price target of $30.
2026-10-02Markdown · changed$17.37+1.7%Entry 6
The framework has shifted from accumulation to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 1.7% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading neutral. Over the past year the shares are down 9%. Our forward projection puts the odds of a 10% gain over the next month near 42%. The street (21 analysts) rates it strong buy, with a mean price target of $30.
The framework has shifted from distribution to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 13.9% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading neutral. Over the past year the shares are down 9%. Our forward projection puts the odds of a 10% gain over the next month near 42%. The street (21 analysts) rates it strong buy, with a mean price target of $30.
The framework has shifted from markdown to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 17.4% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading neutral. Over the past year the shares are down 9%. Our forward projection puts the odds of a 10% gain over the next month near 42%. The street (21 analysts) rates it strong buy, with a mean price target of $30.
2026-07-18Markdown$18.15+0.0%Entry 3
Our analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading neutral. Over the past year the shares are down 9%. Our forward projection puts the odds of a 10% gain over the next month near 42%. The street (21 analysts) rates it strong buy, with a mean price target of $30.
2026-07-03Markdown$18.15+0.0%Entry 2
Our analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Markdown$18.15Entry 1
Our analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
