Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Hesai Group IPO Preview: Will Rich Valuation Worry Long-Term Investors?

Equity Capital Markets

<ul>
<li>Our base case valuation of Hesai Group is implied market cap of US$3.4 billion or target price of US$27.1 per share.</li>
<li>Our target price is 43% higher than the high end of the IPO price of US$19 per share. Given the solid upside, we have a positive view of this IPO. </li>
<li>The company's superior technology in the LiDAR product segment along with its global market leadership should help Hesai Group to successfully complete this IPO despite political risks related to China. </li>
</ul>


Our base case valuation of Hesai Group is implied market cap of US$3.4 billion or target price of US$27.1 per share.
Our target price is 43% higher than the high end of the IPO price of US$19 per share. Given the solid upside, we have a positive view of this IPO. 
The company's superior technology in the LiDAR product segment along with its global market leadership should help Hesai Group to successfully complete this IPO despite political risks related to China. 


Hesai Group

HESAI Group IPO Valuation Analysis