Core Viewpoint - Horizon Robotics-W (09660) reported a 68% year-on-year revenue increase to 1.6 billion RMB in the first half of the year, exceeding market expectations by 10% [1] Group 1: Financial Performance - The company maintained its delivery target of 4 million units for the fiscal year [1] - The high-end solution, Horizon Superdrive, is set to begin mass production in the fourth quarter to boost sales [1] - Revenue forecasts for the next two years have been raised by 22%, with expected revenues of 3.7 billion RMB and 6 billion RMB, representing year-on-year increases of 55% and 63% respectively [1] Group 2: Valuation and Market Position - The target price has been adjusted from 10.4 HKD to 11.5 HKD, maintaining a price-to-sales ratio of 23 times for the next year [1] - The company is expected to solidify its position as the leading player in the domestic driver assistance solutions industry by the end of the year [1]

Core Viewpoint - The automotive industry is on the brink of a revolution driven by smart technology, with 2025 expected to be a pivotal year for the adoption of Level 3 (L3) automation, particularly in urban environments [1][2]. Group 1: Automotive Smart Technology - L3 automation is anticipated to significantly influence consumer purchasing decisions, becoming one of the top three considerations when buying a car [1]. - The penetration rate of L3 automation is projected to increase from 10% in 2025 to over 80% by 2027, indicating a rapid adoption phase [1]. - The future automotive landscape is expected to be categorized into three types of companies: B-end Robotaxi operators, C-end personalized brands, and high-end vehicle manufacturers [2]. Group 2: Market Trends and Developments - In August, the penetration rate of urban NOA (Navigation on Autopilot) reached 23.2%, reflecting a month-on-month increase of 0.9 percentage points [3]. - Companies like Li Auto and XPeng are leading in smart technology adoption, with XPeng's smart technology penetration exceeding 70% and Li Auto's at 59.4%, despite a slight decline [3]. - The introduction of next-generation driving architectures, such as VLA, is being implemented in new models, enhancing the capabilities of smart driving systems [3]. Group 3: Investment Recommendations - The report suggests a focus on smart vehicles and related components, highlighting companies in both Hong Kong and A-share markets, such as XPeng Motors, Li Auto, BYD, and SAIC Motor [4]. - Investment opportunities are identified in AI chips, domain controllers, and electronic components, with specific companies recommended for each category [4].

Core Viewpoint - Horizon Robotics-W (09660) has seen a significant stock increase of nearly 7%, with a cumulative rise of over 20% post-earnings report, reflecting strong financial performance and market confidence [1] Financial Performance - For the first half of the year, Horizon Robotics reported revenue of 1.567 billion yuan, representing a year-on-year growth of 67.6% [1] - The gross profit reached 1.024 billion yuan, with a comprehensive gross margin of 65.4% [1] - The company holds cash reserves of 16.1 billion yuan [1] Market Outlook - Daiwa's research report indicates that Horizon Robotics' revenue for the first half of the year accounted for 45% of their full-year revenue forecast, driven by a significant increase in hardware shipments [1] - The company is confident in achieving an annual delivery target of 4 million hardware units, with mid-to-high-end products contributing 50% [1] Chip Delivery and Pricing - Horizon Robotics delivered 1.98 million ADAS chips in the first half of the year, marking a year-on-year growth of 106% [1] - The average price of chips increased by 70% year-on-year due to changes in the product mix [1] - Daiwa has raised its full-year chip delivery forecast to 4.5 million units, anticipating continued growth in the second half of the year [1]

Group 1 - The core viewpoint of the report is that Bank of America Securities has raised the target price for Horizon Robotics-W (09660) from HKD 9.3 to HKD 11.1 and reiterated a "Buy" rating due to optimistic growth prospects following a recent investor meeting after the company's earnings report [1] - The company is expected to secure design orders for high-end HSD solutions from at least 4-5 automotive manufacturers this year, which will significantly increase the shipment volume of its J6P chips from an estimated 40,000 units in 2025 to 430,000 units in 2026 [1] - The management anticipates an increase in market share for Horizon's intelligent driving assistance solutions among domestic automotive OEMs in the fiscal year 2026, leading to a 3-5% upward revision in revenue forecasts for the fiscal years 2026-2027 [1]

Core Viewpoint - Bank of America Securities expresses increased optimism regarding Horizon Robotics' future growth prospects following the investor meeting after the company's earnings report, citing successful progress in vehicle design integration in both domestic and international markets [1] Group 1: Company Performance - The company is expected to secure design orders for high-end HSD solutions from at least 4-5 automotive manufacturers this year, which is anticipated to drive the shipment of its J6P chips from an estimated 40,000 units in 2025 to 430,000 units in 2026 [1] - The management anticipates an increase in market share for Horizon's intelligent driving assistance solutions among domestic OEMs in the fiscal year 2026 [1] Group 2: Financial Projections - Bank of America Securities raises its revenue forecast for Horizon Robotics for the fiscal years 2026-2027 by 3-5% to reflect better progress in new vehicle design orders, expecting large-scale shipments to commence from the fiscal year 2026 [1] - The target price for Horizon Robotics has been increased from HKD 9.3 to HKD 11.1, with a reiterated "Buy" rating [1]

Investment Rating - The investment rating for Horizon Robotics (9660.HK) is "Buy" [1] Core Insights - The company reported a significant increase in revenue and gross profit for the first half of 2025, with revenue reaching 1.567 billion yuan, a year-on-year growth of 67.6%, and gross profit of 1.024 billion yuan, up 38.61% [2] - The net profit attributable to shareholders was -5.233 billion yuan, compared to -5.098 billion yuan in the same period last year, indicating ongoing challenges in profitability [2] - The gross margin was 65.36%, a decrease of 13.68 percentage points year-on-year, while the sales expense ratio decreased by 3.86 percentage points to 17.37% [2] - Research and development expenses increased by 62% year-on-year, with a ratio of 146.8%, down 5.1 percentage points from the previous year [2] - The automotive product solutions segment saw revenue growth of 249.97% year-on-year, reaching 777.8 million yuan, driven by a doubling of delivery volume and an increase in average selling price [2] Financial Performance Summary - For the first half of 2025, the company achieved a revenue of 1.567 billion yuan, with a gross profit of 1.024 billion yuan and a net profit of -5.233 billion yuan [2] - The average selling price (ASP) of automotive products and solutions reached 1.7 times that of the same period last year, with mid-to-high-end solutions accounting for 49.5% of total deliveries [2] - The company maintained a leading market share in China's ADAS front-view integrated machine (45.8%) and assisted driving computing solutions (32.4%) [2] - The forecast for revenue from 2024 to 2027 shows a growth trajectory, with expected revenues of 2.384 billion yuan in 2024, 3.610 billion yuan in 2025, 5.697 billion yuan in 2026, and 8.053 billion yuan in 2027 [3] Market Position and Expansion - The company has solidified its market share and is experiencing high demand for mid-to-high-end products, with a significant increase in deliveries [2] - Horizon Robotics has made strides in international expansion, securing model designations with two Japanese automakers and collaborating with multiple joint ventures in China [2] - The company is positioned to benefit from the rapid penetration of intelligent driving technology and the ongoing release of downstream demand [2]

Investment Rating - The report maintains a "Recommended" rating for the company [5][7]. Core Insights - The company reported a revenue of 1.567 billion RMB for H1 2025, representing a year-on-year increase of 67.64%, primarily driven by a 250% increase in automotive product solution revenue due to rapid growth in the shipment of the Chengcheng 6 processing hardware [2][3]. - The company's gross margin for H1 2025 was 65.36%, a decrease of 13.68 percentage points year-on-year, with the automotive product solution business gross margin at 45.6%, an increase of 3.9 percentage points [2]. - The company has achieved significant growth in its high-speed NOA (Navigation on Autopilot) solutions, with a record number of model designations, and has shipped 1.98 million sets of processing hardware, doubling year-on-year [3][4]. Revenue and Profit Forecast - The company is expected to generate revenues of 3.891 billion RMB in 2025, 5.865 billion RMB in 2026, and 8.352 billion RMB in 2027, with growth rates of 63.2%, 50.7%, and 42.4% respectively [6]. - The forecasted net profit for 2025 is -1.9 billion RMB, improving to -940 million RMB in 2026, and turning positive at 70 million RMB in 2027 [6]. Market Position and Strategy - The company is positioned as a leader in domestic intelligent driving solutions, with a comprehensive stack technology capability covering L2 to L4 level intelligent driving chip solutions [5]. - The company has made significant strides in international expansion, securing model designations with two Japanese automakers for markets outside China, which is expected to yield over 7.5 million units in lifetime shipments [4].

Core Viewpoint - Company Horizon reported a significant revenue growth of 67.6% year-on-year for the first half of 2025, reaching 1.567 billion, despite an increase in operating losses [1][2] Revenue Breakdown - The product solutions segment saw a substantial revenue increase of 249.97%, generating 778 million, with hardware shipments doubling to 1.98 million units, including 490,000 units of high-value processing hardware supporting high-speed NOA functions, which is six times the amount from the same period last year [1] - The licensing and services segment generated 740 million, a year-on-year increase of 6.9%, with improved customer structure and reduced revenue concentration from a single partner [1][2] Profitability Metrics - The gross margin for the first half of 2025 was 65.36%, a decrease of 13.76 percentage points year-on-year, primarily due to changes in revenue structure with a lower proportion of high-margin licensing and services [1] Expense Analysis - Research and development expenses reached 2.3 billion, a year-on-year increase of 62%, driven by increased investment in cloud computing capabilities and the development of high-end products [2] Growth Opportunities - The company is set to launch its HSD advanced driver assistance products, which are expected to open new growth avenues, with initial production slated for the Chery Xingji Yuan E05 model [2] - The company has made progress in overseas expansion, securing model designations from two Japanese OEMs for markets outside China, with an expected total lifecycle shipment of over 7.5 million units [2] Investment Outlook - The company maintains a "Buy-A" rating, projecting revenues of 3.52 billion, 5.48 billion, and 8.02 billion for 2025 to 2027, with growth rates of 47.6%, 55.8%, and 46.3% respectively, and a target market value of 123.2 billion RMB [2]

Core Viewpoint - Daiwa has released a report stating that Horizon Robotics (09660) is experiencing robust chip delivery momentum in China, with a breakthrough in global orders. The firm maintains a "Buy" rating on Horizon and raises the target price from HKD 9.6 to HKD 10.5, while also increasing the revenue forecasts for the next two years by 3% to 6% to reflect the expected rise in chip delivery volume [1] Group 1 - The company delivered 1.98 million ADAS chips in the first half of the year, representing a year-on-year increase of 106% [1] - Due to changes in the product mix, the average price of chips increased by 70% year-on-year during the same period [1] - Daiwa has raised its full-year chip delivery forecast for the company to 4.5 million units, considering potential growth in deliveries in the second half of the year [1] Group 2 - The company is expected to prioritize revenue growth over net profit in the short term [1] - Research and development expenditure for the company increased to RMB 2.3 billion in the first half of the year, with investments in cloud computing growing more than threefold year-on-year [1]

大和发布研报称，地平线机器人-W(09660)在中国的芯片交付势头稳健，全球订单获得突破。该行重申 对地平线的"买入"评级，目标价由9.6港元上调至10.5港元，又调升公司今明两年的收入预测3%至6%， 以反映预期芯片交付量上升。 公司上半年交付198万颗ADAS芯片，同比增长106%。由于产品组合变化，期内芯片的均价同比上升 70%。该行考虑到地平线下半年交付或会增长，将其今年全年芯片交付预测上调至450万颗。该行又预 计，短期内地平线将优先扩大收入，而非实现净利润。公司在上半年的研开发支已提高至23亿元人民 币，其中云计算业务的投资同比增长超过三倍。 ...