CICC Begins Coverage of HESAI-W with Outperform Rating; Robotics Driving Growth Opportunities
CICC Coverage Initiation: CICC has initiated coverage on HESAI-W (02525.HK) with an Outperform rating and a target price of HKD182.5, highlighting its status as the only profitable publicly listed LIDAR company globally.
Market Projections: CICC estimates that HESAI-W's shipments of automotive LIDAR in China will exceed 3 million units by 2025 and 10 million units by 2028, driven by advancements in city navigation and declining LIDAR prices.
Growth in Robotics Sector: The robotics sector, including applications like lawn mowers and logistics robots, is emerging as a new growth engine for HESAI-W, alongside anticipated breakthroughs in overseas markets.
Short Selling Data: As of the latest report, HESAI-W has experienced short selling of $47.14 million, with a short selling ratio of 23.446%.
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CICC Forecasts Capital Flow Shifts for Stocks with Significant Weight Adjustments in MSCI China Index Quarterly Review (Table)
Stocks with Expected Weighting Increases: Stocks like SENSETIME-W and HESAI-W are expected to see significant increases in weighting, with inflows of US$422 million and US$147 million respectively, despite varying short selling ratios.
Stocks with Expected Weighting Decreases: TENCENT and BABA-W are among the stocks anticipated to experience decreases in weighting, with TENCENT facing a notable outflow of US$293 million due to high short selling activity.
HSI Gains 116 Points at Midday, Driven by Xiaomi and BYD; SMIC Shows Little Movement After Earnings Report
US Retail Sales and Market Response: December retail sales in the US fell short of expectations, while the DJIA rose 0.1% amid speculation of a potential rate cut.
Hong Kong Market Performance: The Hong Kong stock market saw gains, with the HSI up 116 points (0.4%) and notable increases in the HSCEI and HSTECH indices.
Stock Movements and Short Selling: Significant short selling activity was reported, particularly for companies like SMIC and CHINA LIT, which experienced stock price declines despite some companies reporting profit increases.
Automakers' Stock Surge: Automakers led the market gains, with companies like Xiaomi and NIO seeing substantial stock price increases following positive developments in tech innovation and profit forecasts.
SENSETIME-W and HESAI-W Surge Over 7% Following Inclusion in MSCI China Index
MSCI Index Review Results: MSCI announced its quarterly index review, adding 37 stocks to the MSCI China Index, including HESAI-W, PONY-W, SENSETIME-W, and YOFC, while removing 16 stocks such as CHINA VANKE, GWMOTOR, and FOSUN INTL.
Stock Performance: Following the index changes, SENSETIME-W and HESAI-W saw significant increases in their stock prices, with SENSETIME-W peaking at HK$2.64 and HESAI-W at HK$215.2, while PONY-W also experienced a rise.
HSI Rises by 63 Points; Automotive Stocks Gain; SMIC Declines After Earnings Report
Market Opening: The HSI opened 63 points higher at 27,246, with the HSCEI and HSTECH also showing slight increases of 15 and 11 points, respectively.
Stock Performance: SENSETIME-W and HESAI-W saw significant gains of 3.3% and 6.9%, while YOFC experienced a decline of 1.3% after being added to the MSCI China Index.
Tech Sector Movements: SMIC and CHINA LIT faced declines of 3.5% and 5.0%, respectively, despite SMIC reporting a 60.7% YoY profit increase, while BIDU-SW and BABA-W saw minor gains.
Auto Sector Gains: BYD COMPANY and NIO-SW opened higher by 3.9% and 3.5%, respectively, indicating positive momentum in the auto sector alongside other tech stocks like XIAOMI-W.
Changes to MSCI China Index Constituents: Addition of YOFC, HESAI-W, PONY-W, and SENSETIME-W
MSCI Index Review Results: MSCI announced the results of its index review, effective after market close on February 27, with 37 stocks added and 16 stocks removed from the MSCI China Index.
Stocks Added: Notable additions include HESAI-W, PONY-W, SENSETIME-W, and YOFC, with varying short selling ratios and price changes.
Stocks Removed: Stocks removed from the index include Autohome ADR, CHINACOMSERVICE, CHINA VANKE, FOSUN INTL, ZHEJIANGEXPRESS, and Qfin Holdings, with significant short selling activity noted.
A-Shares Changes: The remaining changes in the index pertained to A-shares, indicating a broader adjustment beyond just Hong Kong stocks and ADRs.
CLSA Begins Coverage of HESAI-W (02525.HK) with Outperform Rating and Target Price of HKD246.4
HESAI-W's Market Position: HESAI-W has become the world's largest LiDAR supplier by revenue in 2024, with a production capacity exceeding 200,000 units per month, benefiting from the growing demand for LiDAR in smart vehicles and autonomous driving.
Growth Opportunities: The company's expansion into global markets, particularly in the EU and Southeast Asia, is expected to drive new growth, supported by an Outperform rating and a target price of HKD246.4 from CLSA.
Partnership with NVIDIA: HESAI-W was selected as the LiDAR partner for NVIDIA's Hyperion 10 platform, integrating its ETX product for L3/L4 autonomous driving, which may enhance its global market presence.
Short Selling Data: As of February 9, 2026, HESAI-W experienced short selling of $10.15 million, with a ratio of 6.656%, indicating some market skepticism despite its strong growth prospects.
CICC Forecasts Capital Flow Shifts for Stocks with Significant Weight Adjustments in MSCI China Index Quarterly Review (Table)
Stocks with Expected Weighting Increases: Stocks like SENSETIME-W and HESAI-W are expected to see significant increases in weighting, with inflows of US$422 million and US$147 million respectively, despite varying short selling ratios.
Stocks with Expected Weighting Decreases: TENCENT and BABA-W are among the stocks anticipated to experience decreases in weighting, with TENCENT facing a notable outflow of US$293 million due to high short selling activity.
HSI Gains 116 Points at Midday, Driven by Xiaomi and BYD; SMIC Shows Little Movement After Earnings Report
US Retail Sales and Market Response: December retail sales in the US fell short of expectations, while the DJIA rose 0.1% amid speculation of a potential rate cut.
Hong Kong Market Performance: The Hong Kong stock market saw gains, with the HSI up 116 points (0.4%) and notable increases in the HSCEI and HSTECH indices.
Stock Movements and Short Selling: Significant short selling activity was reported, particularly for companies like SMIC and CHINA LIT, which experienced stock price declines despite some companies reporting profit increases.
Automakers' Stock Surge: Automakers led the market gains, with companies like Xiaomi and NIO seeing substantial stock price increases following positive developments in tech innovation and profit forecasts.
SENSETIME-W and HESAI-W Surge Over 7% Following Inclusion in MSCI China Index
MSCI Index Review Results: MSCI announced its quarterly index review, adding 37 stocks to the MSCI China Index, including HESAI-W, PONY-W, SENSETIME-W, and YOFC, while removing 16 stocks such as CHINA VANKE, GWMOTOR, and FOSUN INTL.
Stock Performance: Following the index changes, SENSETIME-W and HESAI-W saw significant increases in their stock prices, with SENSETIME-W peaking at HK$2.64 and HESAI-W at HK$215.2, while PONY-W also experienced a rise.
HSI Rises by 63 Points; Automotive Stocks Gain; SMIC Declines After Earnings Report
Market Opening: The HSI opened 63 points higher at 27,246, with the HSCEI and HSTECH also showing slight increases of 15 and 11 points, respectively.
Stock Performance: SENSETIME-W and HESAI-W saw significant gains of 3.3% and 6.9%, while YOFC experienced a decline of 1.3% after being added to the MSCI China Index.
Tech Sector Movements: SMIC and CHINA LIT faced declines of 3.5% and 5.0%, respectively, despite SMIC reporting a 60.7% YoY profit increase, while BIDU-SW and BABA-W saw minor gains.
Auto Sector Gains: BYD COMPANY and NIO-SW opened higher by 3.9% and 3.5%, respectively, indicating positive momentum in the auto sector alongside other tech stocks like XIAOMI-W.
Changes to MSCI China Index Constituents: Addition of YOFC, HESAI-W, PONY-W, and SENSETIME-W
MSCI Index Review Results: MSCI announced the results of its index review, effective after market close on February 27, with 37 stocks added and 16 stocks removed from the MSCI China Index.
Stocks Added: Notable additions include HESAI-W, PONY-W, SENSETIME-W, and YOFC, with varying short selling ratios and price changes.
Stocks Removed: Stocks removed from the index include Autohome ADR, CHINACOMSERVICE, CHINA VANKE, FOSUN INTL, ZHEJIANGEXPRESS, and Qfin Holdings, with significant short selling activity noted.
A-Shares Changes: The remaining changes in the index pertained to A-shares, indicating a broader adjustment beyond just Hong Kong stocks and ADRs.
CLSA Begins Coverage of HESAI-W (02525.HK) with Outperform Rating and Target Price of HKD246.4
HESAI-W's Market Position: HESAI-W has become the world's largest LiDAR supplier by revenue in 2024, with a production capacity exceeding 200,000 units per month, benefiting from the growing demand for LiDAR in smart vehicles and autonomous driving.
Growth Opportunities: The company's expansion into global markets, particularly in the EU and Southeast Asia, is expected to drive new growth, supported by an Outperform rating and a target price of HKD246.4 from CLSA.
Partnership with NVIDIA: HESAI-W was selected as the LiDAR partner for NVIDIA's Hyperion 10 platform, integrating its ETX product for L3/L4 autonomous driving, which may enhance its global market presence.
Short Selling Data: As of February 9, 2026, HESAI-W experienced short selling of $10.15 million, with a ratio of 6.656%, indicating some market skepticism despite its strong growth prospects.
