Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [2][8]. Core Insights - The company reported a revenue of 2.384 billion yuan for 2024, representing a year-on-year increase of 54%. The net profit attributable to shareholders was 2.347 billion yuan, a 134.8% increase year-on-year, although the adjusted net profit showed a loss of 2.33 billion yuan, worsening by 270 million yuan year-on-year [2][8]. - The company is experiencing rapid revenue growth driven by increased demand from downstream customers, with significant contributions from both product solutions and authorized services [8]. - The company is focusing on R&D investments to build a technological moat, despite facing losses in adjusted net profit [8]. - The report forecasts continued growth in both volume and price for the company's product solutions in 2025, with expectations of significant increases in average selling prices due to the introduction of higher-tier products [8]. Financial Summary - For 2024, the company achieved a gross margin of 77.3%, up 6.7 percentage points year-on-year, primarily due to a shift in revenue structure favoring higher-margin authorized services [8]. - The company’s total expenses for 2024 were 4.746 billion yuan, accounting for 176% of revenue, with R&D expenses alone reaching 3.16 billion yuan, which is 132% of revenue [8]. - The financial projections for 2025-2027 estimate revenues of 3.67 billion, 5.66 billion, and 8.18 billion yuan, with corresponding growth rates of 54.0%, 54.3%, and 44.4% respectively [8][9].

Investment Rating - The report initiates coverage with a "Buy" rating for Horizon Robotics (9660.HK) [5]. Core Views - Horizon Robotics is positioned as a leading provider of intelligent driving solutions, leveraging its extensive mass production experience and innovative product offerings to capitalize on the growing demand in the automotive sector [5][8]. - The company is set to benefit from the upcoming series of new products, particularly the Journey 6 series, which is expected to enhance its market share and revenue growth significantly by 2025 [5][19]. - Strategic partnerships with major automotive manufacturers such as BYD, Volkswagen, and Li Auto are crucial for Horizon's growth, enabling it to expand its influence in both domestic and international markets [5][40][42]. Summary by Sections 1. Intelligent Driving Solutions Provider - Horizon Robotics, founded in 2015, focuses on intelligent driving solutions, integrating algorithms, dedicated software, and processing hardware to create a comprehensive product matrix [8][9]. - The company has shipped over 7 million units of its intelligent driving chips, showcasing its capability in mass production [5][8]. 2. Journey 6 and Full-Scene Intelligent Driving Solutions - The Journey 6 series, launched in April 2024, represents a significant upgrade in Horizon's product line, designed to meet diverse intelligent driving needs with a scalable architecture [19][21]. - The Journey 6 series offers a computing power range from 10 TOPS to 560 TOPS, catering to various levels of intelligent driving applications [21][22]. 3. Flexible Cooperation Model - Horizon employs a flexible cooperation model, including IP licensing, computing solutions, and joint development, to meet the diverse needs of its clients [5][36]. - The company has established significant partnerships with leading automotive manufacturers, enhancing its market presence and revenue potential [5][40][42]. 4. Industry Opportunities - The intelligent driving sector is poised for rapid growth, driven by initiatives from major players like BYD and Tesla, which are expected to accelerate the adoption of intelligent driving technologies [5][44]. - Horizon holds a leading market share of 33.97% in the domestic intelligent driving computing solutions market, positioning it well to capitalize on the industry's expansion [44]. 5. Profit Forecast and Investment Recommendations - Horizon's revenue is projected to grow significantly, with expected net profits of -2.2 billion, -1.4 billion, and 0.5 billion RMB for 2025, 2026, and 2027 respectively [5][4]. - The report suggests that Horizon's innovative product cycle and favorable market conditions will enhance its profitability in the coming years [5][4].

Investment Rating - The report assigns an "Outperform" rating to the company [8]. Core Views - The company is expected to lead in high growth revenue in 2024, driven by the launch of the Journey 6 series, which will be adopted by over 20 automotive manufacturers and brands, covering a wide range of vehicle types from economy to luxury [9][12]. - The company aims to democratize advanced driving technology through three strategic directions: flagship high-level driving systems, mainstream pricing for urban NOA, and enhancing active safety features [9]. - The company has maintained a leading market share in the Chinese OEM ADAS market, exceeding 40%, and is positioned second in the OEM AD market with over 30% market share [11]. Financial Data and Forecast - Revenue is projected to grow significantly from 1,552 million in 2023 to 3,582 million in 2025, reflecting a year-on-year growth of 71% in 2023 and 54% in 2024 [10]. - The net profit is expected to improve from a loss of 6,739 million in 2023 to a profit of 755 million by 2027, with a notable increase of 135% in 2024 [10][12]. - The gross margin is forecasted to remain strong, with values around 77% for 2024 and beyond [10][15]. Business Segmentation - The automotive retail solutions segment is expected to generate revenue of 2,311.70 million in 2024, with a growth rate of 57% [15]. - Non-standard automotive insurance revenue is projected to decline slightly, while overall revenue is expected to grow at a compound annual growth rate of 54% from 2024 to 2027 [15]. Market Performance - The company's stock has shown significant absolute and relative growth, with a 261.7% increase over the last three months [7]. - The stock price as of April 1, 2025, was 6.40 HKD, with a market capitalization of approximately 70.886 billion HKD [4].

Investment Rating - The report maintains an "Outperform" rating for Horizon Robotics-W [5][42] Core Insights - In 2024, Horizon Robotics-W achieved a total revenue of 2.384 billion RMB, representing a year-on-year growth of 53.6% [8][24] - The company reported a net profit of 2.347 billion RMB in 2024, a significant recovery from a loss of 6.739 billion RMB in 2023, primarily due to fair value changes in preferred shares and other financial liabilities [8][24] - Adjusted operating loss narrowed to 1.495 billion RMB in 2024 from 1.687 billion RMB in 2023, indicating improved operational efficiency [8][24] Revenue and Profitability - The automotive solutions segment generated 2.312 billion RMB in revenue, up 57.2% year-on-year, driven by increased delivery volumes and strong demand for products [10][24] - The licensing and services business saw revenue rise to 1.658 billion RMB, a 70.9% increase, reflecting the growing demand for algorithms, software development tools, and technical services in the smart automotive sector [10][24] - The overall gross margin improved to 77.25%, up 6.7 percentage points year-on-year, largely due to a favorable revenue mix with a higher proportion of high-margin licensing and services revenue [15][24] Product Development and Market Position - The launch of the Journey 6 series processing hardware is set to empower advanced driver assistance and high-level autonomous driving solutions, with production starting in February 2025 [3][27] - Horizon Robotics has established a leading position in the Chinese OEM advanced driver assistance systems (ADAS) market, capturing over 40% market share by the end of 2024 [20][24] - The company is positioned as a key player in the high-level autonomous driving market, ranking second among independent third-party solution providers in China [20][24] Future Outlook - Revenue projections for 2025-2027 are estimated at 3.39 billion RMB, 5.34 billion RMB, and 7.45 billion RMB respectively, with expected net profits of -1.865 billion RMB, -341 million RMB, and 787 million RMB [4][42] - The report emphasizes the strong growth potential of Horizon Robotics, driven by robust demand for its products and services in the rapidly evolving smart automotive industry [42]

Investment Rating - The investment rating for the company is upgraded to "Buy" [1] Core Views - The company reported a revenue of 2.384 billion yuan for 2024, representing a year-on-year increase of 53.6%, and a net profit of 2.347 billion yuan, marking a turnaround from losses [7] - The J6 series has been fully launched, with production and delivery expected to drive long-term growth, supported by partnerships with over 20 OEM brands [7] - The company achieved a strong growth in delivery volume and an increase in gross margin, with product solution revenue rising by 31.2% year-on-year [7] - High R&D investment is strengthening the company's technological advantages, with R&D expenses increasing by 33.4% to 3.16 billion yuan [7] - The company expects to achieve cumulative shipments of over 10 million units for the J series by 2025 [7] Financial Summary - Total revenue forecast for 2025 is adjusted to 3.66 billion yuan, with a projected revenue of 5.364 billion yuan for 2026 and 8.047 billion yuan for 2027 [7] - The company’s net profit for 2025 is expected to be a loss of 2.450 billion yuan, improving to a profit of 338 million yuan by 2027 [1] - The P/E ratios for 2025, 2026, and 2027 are projected to be 26.1, 17.8, and 11.9 respectively [7]

Investment Rating - The report upgrades the investment rating of Horizon Robotics-W (09660.HK) to "Buy" [1] Core Views - The company achieved a revenue of 2.384 billion yuan in 2024, representing a year-on-year growth of 53.6%, and a net profit of 2.347 billion yuan, marking a turnaround from losses, primarily due to a 4.68 billion yuan contribution from the fair value changes of preferred shares and other financial liabilities [7] - The J6 series has been fully launched, with ongoing partnerships with over 20 OEM brands, which is expected to support long-term growth [7] - The company has a leading market share in the Chinese OEM ADAS/OEM AD market, with a market share of over 40% and 30% respectively [7] Financial Summary - Total revenue projections for 2025 and 2026 have been raised to 3.66 billion yuan and 5.37 billion yuan respectively, with a forecasted revenue of 8.05 billion yuan for 2027 [7] - The company’s gross margin improved, with product solution revenue increasing by 31.2% and service revenue by 70.9% in 2024 [7] - R&D expenses increased by 33.4% to 3.16 billion yuan in 2024, reflecting a focus on enhancing technological capabilities [7][8]

Investment Rating - The report upgrades the investment rating of the company to "Buy" [1] Core Views - The company achieved a revenue of 2.384 billion yuan in 2024, representing a year-on-year growth of 53.6%, and turned a profit with a net profit of 2.347 billion yuan, primarily due to a fair value change of preferred shares and other financial liabilities contributing 4.68 billion yuan [7] - The J6 series has been fully launched, with ongoing partnerships with over 20 OEM brands, which is expected to support long-term growth [7] - The company has a leading market share in the Chinese OEM ADAS/OEM AD market, with a market share of over 40% and 30% respectively [7] Financial Summary - Total revenue forecast for 2024 is 2.384 billion yuan, with projections of 3.659 billion yuan in 2025 and 5.365 billion yuan in 2026 [8] - The adjusted operating loss for 2024 is expected to narrow to 1.5 billion yuan, a year-on-year improvement of 11.4% [7] - Research and development expenses are projected to increase by 33.4% to 3.16 billion yuan in 2024, reflecting a focus on enhancing technological capabilities [7] Market Position - The company has secured over 310 model designations, with expectations to exceed 10 million cumulative shipments of the J series by 2025 [7] - The gross margin for product solutions and services is expected to improve, with a gross margin of 44.7% for product solutions in 2024 [7] Valuation Metrics - The price-to-earnings ratio (P/E) for 2025 is projected at 26.1, decreasing to 11.9 by 2027 [1][8] - The report anticipates a significant increase in revenue, with expectations of 8.05 billion yuan by 2027 [1][8]

Revenue and Profitability - Revenue from customer contracts for the year ended December 31, 2024, was RMB 2,383.6 million, representing a year-on-year increase of 53.6%[3] - Gross profit for the same period was RMB 1,841.4 million, reflecting a year-on-year growth of 68.3%[3] - Revenue from licensing and service business was RMB 1,647.5 million, marking a year-on-year increase of 70.9%[8] - Revenue for the year ended December 31, 2024, increased by 53.6% to RMB 2,383.6 million compared to RMB 1,551.6 million in 2023[13] - Gross profit for 2024 was RMB 1,841.4 million, representing a 68.3% increase year-over-year, with a gross margin improvement from 70.5% in 2023 to 77.3% in 2024[13] - The automotive solutions segment's revenue increased by 57.2% to RMB 2,311.7 million, with significant growth in both product solutions and licensing services[13] - Automotive solutions revenue increased to RMB 2,311,703 thousand in 2024, up 57.0% from RMB 1,470,364 thousand in 2023[50] - The gross profit margin for automotive solutions improved from 73.7% in 2023 to 78.9% in 2024, with licensing and service business margins reaching 92.0%[14] Expenses and Losses - Adjusted operating loss narrowed to RMB 1,495.2 million, a decrease of 11.4% compared to the previous year[3] - Research and development expenses rose by 33.4% to RMB 3,156.1 million, driven by increased technical service procurement and higher personnel costs[14] - Administrative expenses increased by 43.8% to RMB 637.6 million, primarily due to higher employee benefits and professional service fees related to the IPO[15] - Sales and marketing expenses grew by 25.2% to RMB 409.9 million, reflecting increased promotional and marketing efforts[15] - The company recorded a loss of RMB 557.3 million from equity method investments, an increase from RMB 112.1 million in the previous year, attributed to losses from a newly established subsidiary[16] - Adjusted net loss for 2024 was RMB 1,681.2 million, slightly higher than RMB 1,635.2 million in 2023[18] - The company recorded a net loss attributable to equity holders of RMB 2,340,358 thousand for the year ending December 31, 2024, compared to a loss of RMB 6,739,021 thousand in 2023, showing a reduction in losses[58] Financial Position - Cash and cash equivalents increased by 35.3% to RMB 15.4 billion as of December 31, 2024, from RMB 11.4 billion as of December 31, 2023[21] - The company's debt-to-asset ratio improved to 41.5% as of December 31, 2024, compared to 255.4% in the previous year[26] - Total assets as of December 31, 2024, amounted to RMB 20,378,992 thousand, an increase from RMB 15,873,873 thousand in 2023[44] - The company reported a total liability of RMB 8,464,180 thousand as of December 31, 2024, down from RMB 40,539,257 thousand in 2023[46] - The company’s non-current liabilities totaled RMB 7,186,358 thousand in 2024, a substantial increase from RMB 287,144 thousand in 2023[46] - The company’s net assets improved to RMB 11,914,812 thousand in 2024, compared to a net liability of RMB 24,665,384 thousand in 2023[46] Shareholder Information - The company has no plans to declare an annual dividend for the year ended December 31, 2024[39] - The company did not declare or pay any dividends for the years ending December 31, 2024, and 2023, maintaining a focus on reinvestment[61] - Basic earnings per share for 2024 was RMB 0.51, a recovery from a loss of RMB 2.50 per share in 2023, reflecting improved profitability[58] - The weighted average number of ordinary shares outstanding increased to 4,576,138 thousand in 2024 from 2,700,123 thousand in 2023, contributing to the change in earnings per share[58] Strategic Developments - The company achieved a market share of over 40% in the Chinese OEM advanced driver-assistance systems (ADAS) market by the end of 2024[6] - Total deliveries of product solutions reached approximately 2.9 million units in 2024, with cumulative deliveries amounting to about 7.7 million units[6] - The new generation Horizon SuperDrive (HSD) solution was launched in 2024, designed for seamless high-level autonomous driving across various scenarios[7] - Strategic partnerships with over 20 OEM brands were established to promote the application of the Journey 6 series processing hardware[7] - The HSD solution received the iF Design Award for its intuitive interface and user engagement[10] - The company anticipates cumulative shipments of the Journey series processing hardware to exceed 10 million units by 2025, becoming the first autonomous driving technology company in China to achieve this milestone[11] Compliance and Governance - The audit committee has reviewed the audited consolidated financial statements for the year ended December 31, 2024, and found them compliant with applicable accounting standards[34] - The company is evaluating the potential impact of new accounting standards expected to be effective in the coming years, with no significant impact anticipated on financial performance[49] - The company has proposed amendments to its articles of association to enhance flexibility in holding shareholder meetings and adopting electronic communications[63] - The company plans to publish its annual report and performance announcement on its website and the stock exchange, ensuring transparency for shareholders[62] Other Financial Metrics - Other income surged to RMB 195.9 million, driven by financial subsidies related to key R&D milestones[16] - Financial income net increased significantly to RMB 375.8 million, primarily due to higher interest income[16] - The fair value change of preferred shares and other financial liabilities recorded a gain of RMB 4,676.7 million in 2024, compared to a loss of RMB 4,760.4 million in 2023[17] - The net profit for 2024 was RMB 2,346.5 million, a significant recovery from a net loss of RMB 6,739.1 million in 2023[17] - The income tax expense for 2024 was RMB (4,507) thousand, compared to an income tax benefit of RMB 5,075 thousand in 2023[55]

Company Overview - The report rates the company as "Recommended" for investment, indicating a positive outlook for its future performance [1] - Horizon Robotics, established in July 2015, focuses on edge AI chip development and provides solutions for advanced driver assistance systems (ADAS) and high-level autonomous driving (AD) [17] - The company has achieved significant revenue growth, with total revenue increasing from 470 million to 1.55 billion yuan from 2021 to 2023, reflecting a compound annual growth rate (CAGR) of 82% [7][10] Core Insights - The company has a strong technical background, a flat management structure, and high R&D efficiency, which contribute to its leading position in the market for integrated software and hardware solutions [2][8] - Horizon Robotics has established high-stickiness relationships with quality customers and has extensive strategic partnerships across the industry [2][8] - The company is positioned as a core third-party supplier in the domestic market, benefiting from the increasing demand for high-level autonomous driving solutions and domestic substitution trends [7][10] Financial Performance - The company's total revenue is projected to reach 2.21 billion yuan in 2024, 3.55 billion yuan in 2025, and 5.26 billion yuan in 2026, with growth rates of 42.5%, 60.3%, and 48.4% respectively [3][9] - Despite the revenue growth, the company is currently operating at a loss, with net profit expected to improve from -6.11 billion yuan in 2024 to -2.24 billion yuan in 2026 [3][9] - The gross margin has remained stable around 70%, indicating strong pricing power and technical premium [10][40] Industry Dynamics - The transition from L2 to L3 level autonomous driving is accelerating, with significant market potential expected in the coming years [49][52] - The global market for ADAS and AD solutions is projected to exceed 400 billion yuan by 2030, with a CAGR of approximately 49% from 2023 to 2030 [7][49] - The competitive landscape is characterized by rapid technological changes and intense competition among automotive manufacturers and suppliers [49][53]

Investment Rating - The investment rating for the company is "Outperform the Market" [2][4][18] Core Viewpoints - The company is a leader in autonomous driving solutions, with the launch of the Horizon Journey 6 series, which covers all levels of intelligent driving applications. The series includes six versions tailored for different driving scenarios, providing optimal performance and cost solutions [3][4][5] - The demand for the Horizon series chips is strong, with a robust order book, indicating high growth potential for future performance. The company is positioned as a rare player in the domestic intelligent driving chip market, with significant industry growth opportunities [4][18] - The company expects revenue growth from 22.55 billion CNY in 2024 to 53.42 billion CNY in 2026, with net profits projected to improve from -64 million CNY in 2024 to -3.41 million CNY in 2026 [4][18] Summary by Sections Product Launch and Features - The Horizon Journey 6 series includes models such as Journey 6B, 6M, 6E, and 6P, designed for low, mid, and high-level intelligent driving markets, respectively. The series aims to redefine active safety and enhance driving experiences across various scenarios [3][4][8] - As of January 2025, over 7 million units of the Horizon Journey series have been shipped, with expectations to surpass 10 million units soon. The series has been selected by over 20 automotive brands, supporting more than 100 models with mid to high-level intelligent driving features [3][4][15] Market Position and Growth Potential - The company is recognized as the leading domestic intelligent driving chip manufacturer, with a complete and mature product matrix covering L1 to L4 autonomous driving levels. This positions the company as a preferred partner for many automotive brands and Tier 1 suppliers [4][18] - The company is set to benefit from the growing demand for intelligent driving solutions, with a focus on high integration, low power consumption, and cost efficiency in its products [4][8] Financial Projections - Revenue projections for 2024, 2025, and 2026 are 22.55 billion CNY, 33.89 billion CNY, and 53.42 billion CNY, respectively. The net profit is expected to improve from -64 million CNY in 2024 to -3.41 million CNY in 2026, indicating a path towards profitability [4][18][22]