Daily Investment Strategy
Daily focus：Hesai Technology (2525)
Hesai Technology reported strong performance in the third quarter of 2025, with net revenue reaching RMB 795 million, a year-on-year increase of 47.5%. Quarterly net profit was RMB 256 million, a significant turnaround from a net loss in the same period last year. This performance exceeded market expectations, partly due to a RMB 173 million gain from the sale of an equity investment. Gross margin remained at a healthy level of 42.1% this quarter. In terms of business progress, the company secured designated cooperation agreements for its two largest ADAS customers across all vehicle models in 2026. In the robotics field, new supply agreements were signed with several global autonomous driving companies, including Motional, Pony.ai, and JD Logistics. Looking ahead, the deployment of Level 3 vehicles is seen as a major growth driver, with each Level 3 vehicle expected to be equipped with 3 to 6 lidars. The company anticipates total shipments of at least 2 to 3 million units by 2026.
The impending end of the US government shutdown boosted stock market confidence
The S&P 500 rose slightly by 0.1% to close at 6,850 points, buoyed by news that the shutdown was about to end. The shutdown crisis stemmed from budget disagreements in Congress, but the House of Representatives is expected to vote on a bill tonight to avoid further economic disruption, thus alleviating short-term fiscal uncertainty. This issue became the focus of the market, highlighting the crucial impact of political stability on the economy. The implication is that the end of the shutdown not only alleviates immediate pressure but also paves the way for the Trump administration's new economic policies, including tax cuts and regulatory deregulation, which are expected to stimulate corporate investment and consumer growth.
Hong Kong Stock Connect saw a net inflow of HK$4.29bn on Tuesday, with Xiaomi Group (1810) experiencing the largest net inflow at HK$1.59bn, followed by XPeng Motors (9868). On the other hand, Alibaba (9988) recorded the largest net outflow at HK$3.43bn, followed by Hua Hong Semiconductor (1347).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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