Hesai Group's stock surged 5.04% during intraday trading on Tuesday, driven by a combination of a bullish analyst report and a corporate action announcement.

The significant gain followed Huachuang Securities maintaining a "Strong Buy" rating on Hesai-W with a target price of HK$249.39. The analyst cited the company's Q1 2026 results, which showed revenue of RMB 681 million and net profit of RMB 18 million, and provided upwardly revised revenue and net profit forecasts for 2026-2028, signaling strong future growth potential.

Additionally, the company announced a proposal for an 8-for-1 stock split, which would subdivide each issued and unissued share. Such corporate actions often generate positive market sentiment by making shares more accessible to a broader range of investors and are typically viewed as a sign of management's confidence in the company's future prospects.