Core Insights - Morgan Stanley reports that the fleet size and operational areas of autonomous taxis in China are continuously expanding, marking a new phase in the global autonomous taxi competition, which serves as a strong catalyst for China's advancement towards L4+ level autonomous driving [1] - The firm anticipates that by 2030, L4+ level autonomous taxis will account for 8% of the total fleet size of taxis or shared mobility in China [1] - In the current industry competition, leading hardware manufacturers with scalable product sales capabilities, such as Horizon Robotics (09660) and Hesai Technology (02525), are expected to benefit from accelerated configuration upgrades [1] - Autonomous taxi manufacturers, such as WeRide, are making strides into emerging international markets [1]

Core Insights - Morgan Stanley reports that the fleet size and operational areas of autonomous taxis in China are continuously expanding, marking a new phase in the global autonomous taxi competition, which serves as a strong catalyst for China's development towards L4+ level autonomous driving [1] - The firm anticipates that by 2030, L4+ level autonomous taxis will account for 8% of the total fleet size of taxis or shared mobility in China [1] - The competition in the industry is intensifying, with leading hardware manufacturers like Horizon Robotics (09660) and Hesai Technology (02525) expected to benefit from accelerated configuration upgrades due to their scalable product sales capabilities [1] - Autonomous taxi manufacturers, such as WeRide, are advancing into emerging international markets [1]

Group 1 - The core viewpoint is that the launch of the Horizon SuperDrive (HSD) solution by the company marks a significant change in the high-end autonomous driving market, with the ET5 model expected to be released in November 2025 [1] - The company has achieved a production milestone of over 10 million units for its Journey series chips, with a target of reaching 10 million units for HSD production in the next 3-5 years [1] - The company has established a European headquarters in Munich and is building deep connections with international clients such as Bosch, Continental, and Volkswagen, which may help expand its autonomous driving solutions globally [1] Group 2 - In the first half of 2025, the company achieved a market share of 45.8% in basic ADAS and 32.4% in overall ADAS solutions, leading the Chinese market [2] - The company saw a doubling of J-series chip shipments to 1.98 million units year-on-year, with shipments of chips supporting NOA functionality increasing fivefold to 980,000 units [2] - The company has secured nearly 90 new model designations, with over 15 models featuring mid-to-high level ADAS solutions entering mass production [2] Group 3 - The company has been included in the Hang Seng Composite Index and the Hang Seng Tech Index, enhancing its visibility and attracting passive fund inflows [2] - Revenue forecasts for 2025-2027 have been adjusted upwards, with expected shipments of 4 million, 5.04 million, and 7 million units, representing year-on-year growth of 38%, 26%, and 39% respectively [2] - Projected revenues for 2025, 2026, and 2027 are 3.62 billion, 5.85 billion, and 8.39 billion yuan, with year-on-year growth rates of 52%, 62%, and 43% respectively [2] Group 4 - The company is positioned as a rare third-party full-stack autonomous driving solution provider in China, benefiting from trends in domestic substitution, automotive intelligence, and edge AI development [3] - The target price for the company is set at 12.44 HKD, with a target PS of 27 times for 2026, corresponding to a target market value of 158 billion yuan [3] - Comparisons with peer companies suggest a PS of 21, 32, and 26 times for Nvidia, ARM, and Cambricon respectively for 2026 [3]

Investment Rating - The report maintains a "Recommended" rating for Horizon Robotics (09660.HK) with a target price of HKD 12.44 [2][7]. Core Views - The introduction of the Chery Star Era ET5 featuring Horizon's HSD autonomous driving solution is expected to drive accelerated growth, with the product anticipated to launch in November 2025 [2]. - The revenue forecasts for 2025-2027 have been adjusted positively, with expected shipments of 4 million, 5.04 million, and 7 million units respectively, reflecting year-on-year growth of 38%, 26%, and 39% [2]. Financial Summary - Main revenue projections for 2024A, 2025E, 2026E, and 2027E are HKD 2,384 million, HKD 3,620 million, HKD 5,851 million, and HKD 8,386 million, with year-on-year growth rates of 53.6%, 51.9%, 61.6%, and 43.3% respectively [3][8]. - The net profit attributable to shareholders is projected to be HKD 2,347 million in 2024, with losses of HKD 7,082 million, HKD 2,726 million, and HKD 1,436 million in 2025, 2026, and 2027 respectively [3][8]. - Earnings per share (EPS) are forecasted at HKD 0.17 for 2024, with negative EPS of HKD -0.51, -0.20, and -0.10 for the following years [3][8]. Market Position and Growth Potential - Horizon Robotics holds the leading market share in China for basic ADAS and overall ADAS solutions, with respective shares of 45.8% and 32.4% [7]. - The company has achieved significant growth in chip shipments, with 1H25 figures showing a doubling in J series chip shipments to 1.98 million units and a fivefold increase in J5/J6 chips supporting NOA functionality to 980,000 units [7]. - The establishment of a European headquarters and partnerships with international clients like Bosch and Volkswagen positions the company favorably for global expansion [7]. Valuation Perspective - The report suggests a target price-to-sales (PS) ratio of 27x for 2026, leading to a target market capitalization of HKD 158 billion [7]. - The valuation is compared to peers such as Nvidia, ARM, and Cambricon, with their projected PS ratios for 2026 being 21, 32, and 26 respectively [7].

Group 1 - The core viewpoint of the report is that Horizon Robotics (09660) is positioned to benefit from the trends of domestic substitution, automotive intelligence, and edge AI development, with a target price set at HKD 12.44 and a "Recommended" rating maintained [1] - The company anticipates significant growth in its core forecasts for 2025-2027, with expected shipments of 4 million, 5.04 million, and 7 million units respectively, representing year-on-year increases of 38%, 26%, and 39% [1] - Revenue projections for the same period are set at CNY 36.2 billion, 58.5 billion, and 83.9 billion, with year-on-year growth rates of 52%, 62%, and 43% [1] Group 2 - The HSD (Horizon SuperDrive) solution is set for mass production, marking a significant change in the high-level autonomous driving market, with the first vehicle featuring this solution expected to launch in November 2025 [1] - The company has established a European headquarters in Munich and is building deep connections with international clients such as Bosch, Continental, and Volkswagen, which may help to expand its global reach [1] - In the first half of 2025, the company achieved a market share of 45.8% in basic ADAS and 32.4% in overall ADAS solutions, leading the Chinese market [2] Group 3 - The company has been included in the Hang Seng Composite Index and the Hang Seng Tech Index, enhancing its visibility and investment appeal in the Hong Kong market [3] - The company is recognized as a rare AI-related stock in the Hong Kong market, with both configuration value and risk appetite on the rise [3] - The stock's inclusion in the indices is expected to attract passive fund inflows, positively impacting its stock performance [3]

Core Viewpoint - The report from Huachuang Securities sets a target price of HKD 12.44 for Horizon Robotics-W (09660) and maintains a "Recommended" rating, highlighting the company's positive revenue outlook and its role as a rare third-party full-stack intelligent driving solution provider in China [1] Group 1: Revenue and Market Position - The company is expected to ship 4 million, 5.04 million, and 7 million units of its solutions in 2025-2027, representing year-on-year growth of 38%, 26%, and 39% respectively [1] - Revenue projections for the same period are set at CNY 36.2 billion, 58.5 billion, and 83.9 billion, with year-on-year growth rates of 52%, 62%, and 43% [1] - The company holds the largest market share in China for basic ADAS and overall ADAS solutions at 45.8% and 32.4% respectively [2] Group 2: Product Development and Partnerships - The HSD (Horizon SuperDrive) solution is set for mass production, with the first vehicle featuring this technology, the Chery Star Era ET5, expected to launch in November 2025 [1] - The company has established a European headquarters in Munich and is building deep connections with international clients such as Bosch, Continental, and Volkswagen [1] - The company has achieved a significant increase in chip shipments, with 1H25 seeing a doubling of J series chip shipments to 1.98 million units and a fivefold increase in shipments of chips supporting NOA functionality [2] Group 3: Index Inclusion and Investment Appeal - The company was included in the Hang Seng Composite Index and the Hang Seng Technology Index in March 2025, enhancing its visibility and investment appeal [3] - The company is considered a rare AI-related stock in the Hong Kong market, with both configuration value and risk appetite on the rise [3]

Group 1 - The Ministry of Science and Technology is promoting the application of humanoid robots in various sectors such as automotive manufacturing, logistics, and power inspection, laying a solid foundation for a trillion-dollar industry [1] - The commercialization of humanoid robots is expected to bring exponential growth opportunities, with a focus on key components like joint modules, tendon materials, reducers, and AI chips [1] - Tesla's CEO Elon Musk purchased over 2.5 million shares of Tesla stock worth approximately $1 billion, indicating strong confidence in the company's future, particularly in the humanoid robot sector [1] Group 2 - Yushu Technology plans to submit its IPO application between October and December 2025, with sales of quadruped robots, humanoid robots, and components projected to account for approximately 65%, 30%, and 5% of revenue, respectively, in 2024 [2] - The robotics industry is experiencing a surge in financing, with major companies like UBTECH, Zhiyuan Robotics, and Yushu Technology receiving large orders, indicating a positive cycle of financing, R&D, orders, and mass production [2] - The humanoid robot market in China is expected to grow from approximately 2.76 billion yuan in 2024 to 75 billion yuan by 2029, capturing about 32.7% of the global market, and potentially exceeding 300 billion yuan by 2035 [2] Group 3 - CITIC Securities highlights that Tesla's Optimus remains central to the robotics market, with a clearer outlook for production in the coming year, benefiting the sector's performance [3] - The upcoming IPO submissions and capital movements in the robotics sector are expected to catalyze market sentiment, with significant developments anticipated in Q4 [3] - The robotics sector is expected to see substantial catalysts in Q4, with Yushu Technology's IPO and other major developments driving market dynamics [3] Group 4 - UBTECH completed a placement of 30.155 million shares, raising a total of 2.41 billion HKD, with over 1 billion HKD allocated for payments to suppliers and service providers, marking the largest placement in the humanoid robotics sector [4] - Horizon Robotics is projected to achieve a compound annual growth rate of 57.5% from 2025 to 2027, with expectations of reaching breakeven by 2028 [4] - Gangzi Robotics signed a global order agreement for 10,000 humanoid robots, aiming for delivery of at least 1,000 units by the end of 2026, marking a significant milestone in the industry [5]

Core Insights - On September 18, Hong Kong Broadband made its first appearance on the active trading list of Hong Kong Stock Connect in nearly a month [2] - The total trading volume of active stocks on the Hong Kong Stock Connect reached HKD 763.71 billion, accounting for 36.27% of the day's total trading amount, with a net buying amount of HKD 33.31 billion [2] Trading Activity Summary - The top traded stock was Alibaba-W with a trading volume of HKD 210.72 billion, followed by SMIC and Tencent Holdings with trading volumes of HKD 140.50 billion and HKD 91.65 billion, respectively [2] - Over the past month, Alibaba-W and Tencent Holdings were the most frequently listed stocks, appearing 23 times, indicating strong interest from Hong Kong Stock Connect funds [2] Hong Kong Broadband Performance - On the day of its first listing, Hong Kong Broadband had a trading volume of HKD 26.49 billion and a net buying amount of HKD 4.28 billion, with its stock price increasing by 68.55% [2]

Market Overview - On September 18, the Hang Seng Index fell by 1.35%, with southbound trading totaling HKD 210.55 billion, comprising HKD 108.42 billion in buying and HKD 102.13 billion in selling, resulting in a net buying amount of HKD 6.28 billion [1] Southbound Trading Details - Southbound trading through the Shenzhen Stock Connect had a total trading amount of HKD 76.78 billion, with buying at HKD 40.58 billion and selling at HKD 36.20 billion, leading to a net buying of HKD 4.38 billion [1] - The Shanghai Stock Connect recorded a total trading amount of HKD 133.77 billion, with buying at HKD 67.84 billion and selling at HKD 65.93 billion, resulting in a net buying of HKD 1.84 billion [1] Active Stocks - The most actively traded stock by southbound funds was Alibaba-W, with a total trading amount of HKD 210.72 billion, followed by SMIC and Tencent Holdings with HKD 140.50 billion and HKD 91.65 billion respectively [1] - In terms of net buying, Meituan-W led with a net buying amount of HKD 14.12 billion, followed by Alibaba-W with HKD 12.10 billion and Pop Mart with HKD 12.07 billion [1] - The stock with the highest net selling was Hua Hong Semiconductor, with a net selling amount of HKD 11.65 billion, while Tencent Holdings and SMIC had net selling amounts of HKD 4.18 billion and HKD 2.77 billion respectively [1] Continuous Net Buying - Two stocks, Alibaba-W and Meituan-W, have seen continuous net buying for over three days, with Alibaba-W having a total net buying of HKD 561.01 billion over 20 days and Meituan-W with HKD 49.01 billion over 4 days [2]

Core Insights - On September 18, 2025, Alibaba-W (09988), SMIC (00981), and Tencent Holdings (00700) were the top three companies by trading volume in the southbound trading of the Stock Connect, with trading amounts of 13.163 billion, 9.044 billion, and 5.634 billion respectively [1][2] - Alibaba-W (09988), SMIC (00981), and Tencent Holdings (00700) also led the trading volume in the southbound trading of the Shenzhen-Hong Kong Stock Connect, with trading amounts of 7.909 billion, 5.005 billion, and 3.531 billion respectively [1][2] Southbound Trading Highlights - **Top Active Companies in Southbound Trading (Hong Kong Stock Connect)** - Alibaba-W (09988): Trading amount of 13.163 billion, net buying of 0.315 billion [2] - SMIC (00981): Trading amount of 9.044 billion, net selling of 0.395 billion [2] - Tencent Holdings (00700): Trading amount of 5.634 billion, net selling of 0.940 billion [2] - Meituan-W (03690): Trading amount of 4.440 billion, net buying of 0.568 billion [2] - Xiaomi Group-W (01810): Trading amount of 3.518 billion, net buying of 0.280 billion [2] - **Top Active Companies in Southbound Trading (Shenzhen-Hong Kong Stock Connect)** - Alibaba-W (09988): Trading amount of 7.909 billion, net buying of 0.895 billion [2] - SMIC (00981): Trading amount of 5.005 billion, net buying of 0.117 billion [2] - Tencent Holdings (00700): Trading amount of 3.531 billion, net buying of 0.522 billion [2] - Meituan-W (03690): Trading amount of 2.495 billion, net buying of 0.844 billion [2] - Xiaomi Group-W (01810): Trading amount of 2.236 billion, net buying of 0.381 billion [2]