Lidar market share exceeds half, RoboSense enters the list of Hong Kong Stock Connect? | Jianzhi Research

"ROBOSENSE, the first stock of LIDAR in the Hong Kong Stock Exchange, which has been listed for less than half a year, was included in the list of Hong Kong Stock Connect targets on June 11, becoming one of the 559 targets. The company's stock price has also experienced significant fluctuations in recent days.

As of June 11, 25 companies have been approved for inclusion in the Hong Kong Stock Connect this year, but the stock price performance varied on that day. Among them, companies such as ROBOSENSE, WuXi AppTec, and TuHu saw their stock prices rise, while companies like YouBao Online and JunShengTai Medicine saw their stock prices fall.

In the first quarter of this year, ROBOSENSE far exceeded its peers in terms of product sales volume, holding over half of the market share, significantly reducing net losses, continuously increasing gross profit margins, and the broad prospects of the LIDAR industry itself have provided solid support for ROBOSENSE's future growth.

(1) Rapid Growth in Product Sales, Market Share Exceeding 50%

Specifically, in the first quarter of this year, ROBOSENSE sold 120,400 LIDAR units, a year-on-year increase of 457.4%. The sales volume of its main product, ADAS LIDAR, was 116,000 units, with a higher year-on-year growth rate of 542%.

In comparison, the first-quarter LIDAR delivery volume of its old rival, Hesai Technology, was 59,100 units, with a year-on-year growth of 69.7%.

The sustained triple-digit growth in product sales has brought ROBOSENSE's market share to 51.6%, far exceeding the second-ranked Huawei Technologies (market share of 18.6%) and the third-ranked Hesai Technology (market share of 15.2%).

(2) Continued Convergence of Net Losses, Gross Profit Margin Back Above 10%

In addition to the increase in operating income brought about by the significant growth in product sales, the scale effect of the products beginning to show has also had a positive impact on profitability.

In the first quarter of this year, ROBOSENSE's operating income reached 360 million yuan, a year-on-year increase of 149.1%. While revenue and product sales volume grew rapidly, ROBOSENSE's net losses did not continue to expand, showing a clear convergence. ROBOSENSE's net loss was 131 million yuan, a year-on-year narrowing of 61.9%, approaching the breakeven point. In addition, the gross profit margin also returned to above 10% to reach 12.3%.

(3) LIDAR Gradually Applied to the Mass Automotive Market

Previously, LIDAR was only used in high-end car models, but due to technological innovation and cost reduction, it can now be applied to the mass automotive market.

The early price of LIDAR was mostly between $2000-3000, but now the mainstream price in China has dropped to $500-1000.

The latest LIDAR product released by ROBOSENSE in April this year, the MX, is priced at around $200, targeting the 150,000-200,000 yuan car market such as XPeng Mona and SAIC-GM-Wuling's Baojun Cloud. It has already secured three mass production projects and is expected to achieve large-scale production in the first half of next year.

In the future, with the expansion of the LIDAR market and technological advancements, ROBOSENSE is expected to seize more opportunities in the intelligent battle and achieve rapid growth in performance