Jefferies starts RoboSense at Hold on new coverage

Jefferies initiated coverage on RoboSense Technology (2498:HK) with a Hold rating and a price target of NT$49.80, citing the company's leading position in automotive-grade MEMS solid-state LiDAR and a 26% global market share by shipments in 2024. Jefferies projects a 55% compound annual growth rate in sales between 2024 and 2026, forecasting the company will achieve its first full-year profit of RMB 112 million in 2026.

Analysis

Jefferies has initiated coverage on RoboSense Technology (2498:HK), with the provided article presenting inconsistent details regarding the rating and price target: an initial statement indicates a 'Hold' rating and an NT$49.80 price target, while a subsequent direct quote from Jefferies analysts specifies a 'Buy' rating, an RMB49.8 price target, and an implied 53% potential upside. Despite this ambiguity in the reported rating, Jefferies' commentary underscores RoboSense's significant position as the first to achieve mass production of automotive-grade MEMS solid-state LiDAR utilizing self-developed SPAD SoC chips. This technological leadership has reportedly enabled RoboSense to capture a 26% share of the global LiDAR market by shipments in 2024. Furthermore, Jefferies projects a substantial 55% compound annual growth rate (CAGR) in sales for RoboSense between 2024 and 2026, forecasting the company will achieve its first full-year profit of RMB 112 million in 2026. RoboSense also harbors ambitions to be a leading supplier in embodied intelligence through its developing range of robotics products.

Key Decisions for Investors

• Investors should seek to clarify Jefferies' definitive stance given the conflicting rating (Hold/NT$49.80 vs. Buy/RMB49.8 with 53% upside) reported in the article.
• Regardless of the rating ambiguity, the core investment thesis hinges on RoboSense's technological lead in MEMS LiDAR, its 26% global market share, the projected 55% sales CAGR, and its path to achieving RMB 112 million in profit by 2026.
• Monitor the company's execution on these growth and profitability targets, as well as developments in its robotics ambitions, which could offer further upside potential.