Core Viewpoint - Horizon Robotics is experiencing rapid revenue growth in its automotive product solutions, with significant increases in both volume and pricing, and is expected to maintain a "buy" rating due to upcoming product launches and successful overseas expansion [1] Group 1: Financial Performance - In H1 2025, Horizon Robotics' automotive product solutions generated revenue of 778 million yuan, representing a year-on-year increase of 250%; gross margin was 45.6%, up by 3.9 percentage points [2] - The company shipped 1.98 million units of its onboard-level Journey series processing hardware, achieving a year-on-year doubling in volume; 980,000 units of hardware supporting highway-assisted driving accounted for 49.5% of total shipments, six times the amount from the same period last year [2] - The average selling price (ASP) increased due to the growth in shipments of the new generation Journey 6 series products [2] Group 2: Market Position and Product Development - Horizon Robotics holds the top market share in China for basic and overall assisted driving solutions, with shares of 45.8% and 32.4% respectively [2] - As of mid-2025, the company has secured 400 new model designations, with over 100 models featuring highway-assisted driving or higher capabilities [2] - The high-level intelligent driving solution HSD has been designated by multiple vehicle manufacturers, covering over ten models, with plans for mass production in the second half of 2025 [2] Group 3: International Expansion - The company collaborates closely with global partners to develop the new generation basic assisted driving solution Horizon Mono, which has received model designations from two Japanese automakers for markets outside China [3] - This collaboration is expected to yield over 7.5 million units in total lifetime shipments [3] - Nine joint venture automakers in China, including Volkswagen and Japan's largest automotive group, have designated 30 models for the company's solutions, with some models set to begin mass production by the end of 2025 [3]

Core Viewpoint - Horizon Robotics is experiencing rapid revenue growth in its automotive product solutions, with significant increases in both volume and pricing, and is expected to maintain a "buy" rating due to upcoming product launches and successful overseas expansion [1] Group 1: Financial Performance - In H1 2025, Horizon Robotics' automotive product solutions revenue reached 778 million yuan, representing a year-on-year increase of 250%; gross margin was 45.6%, up by 3.9 percentage points [2] - The shipment volume of the company's vehicle-grade Journey series processing hardware reached 1.98 million units, doubling year-on-year; shipments of hardware supporting highway-assisted driving reached 980,000 units, accounting for 49.5% of total shipments, which is six times the amount from the same period last year [2] - The market share for basic and overall assisted driving solutions in China is leading, at 45.8% and 32.4% respectively, with 400 new model designations accumulated, including over 100 models with highway-assisted driving capabilities [2] Group 2: Product Development and Partnerships - The company is closely collaborating with global partners to develop the new generation of basic assisted driving solutions, Horizon Mono, based on the Journey 6B processor, and has secured model designations from two Japanese automakers for markets outside China [3] - The partnership with overseas automakers is expected to yield over 7.5 million units in lifetime shipments, with nine joint venture automakers in China designating 30 models for the company's solutions, some of which are set to begin production by the end of 2025 [3] - The successful collaboration with the Volkswagen Group has further enhanced the company's international product layout and global brand influence [3]

Investment Rating - The report maintains a "Buy" rating for the company, with a market price of HKD 10.17 and an industry rating of outperforming the market [2][4]. Core Insights - The company is experiencing rapid revenue growth in H1 2025, with a year-on-year increase of 68%, while also facing strategic losses. The high-level autonomous driving (HSD) production is imminent, and initial success in overseas expansion is noted. The rating is supported by the anticipated rise in average selling price (ASP) for automotive solutions and an increase in contracts for licensing and services due to new product launches [4][5][8]. Financial Projections - Revenue estimates for 2025 and 2026 have been adjusted to HKD 36.97 billion and HKD 57.71 billion, respectively, with a projected revenue of HKD 81.15 billion for 2027. The company is expected to significantly increase its R&D expenses to maintain market competitiveness, impacting net profit forecasts for 2025 and 2026 [5][7]. - The company reported a revenue of HKD 15.67 billion in H1 2025, with a gross profit of HKD 10.24 billion, while net losses expanded to HKD 52.33 billion. R&D expenses reached HKD 23 billion, reflecting a 62% year-on-year increase [8]. Market Position and Product Development - The company's automotive product solutions saw a revenue increase of 250% year-on-year, with a gross margin of 45.6%. The shipment of automotive hardware doubled, with significant growth in products supporting highway-assisted driving [8]. - The company has secured contracts for over 400 new vehicle models, with more than 100 models featuring advanced driving capabilities. The HSD solution has been adopted by multiple vehicle manufacturers, with production expected to commence in the second half of 2025 [8]. International Expansion - Initial success in overseas markets is highlighted, with partnerships leading to the development of new basic driving assistance solutions. Collaborations with major global automotive manufacturers are expected to yield substantial shipment volumes [8]. Licensing and Service Business - The automotive licensing and service business generated HKD 7.38 billion in H1 2025, with a gross margin of 89.7%. The company is actively providing design and technical services to over 30 automotive manufacturers, enhancing ecosystem value [8].

Core Insights - The article highlights the changes in the Hong Kong Stock Connect holdings, with notable increases and decreases in ownership percentages for various companies [1][2]. Group 1: Increased Holdings - Heng Rui Medicine (01276) saw the largest increase in ownership percentage, rising by 1.49% to a total of 13.84% [2]. - Kanglong Chemical (03759) experienced a 1.35% increase, bringing its ownership to 60.51% [2]. - Zhaoyan New Drug (06127) increased by 1.27%, reaching a holding of 43.70% [2]. - Other companies with significant increases include Junshi Biosciences (01877) at +1.24% (59.08%) and China Pacific Insurance (02601) at +1.20% (44.16%) [2]. Group 2: Decreased Holdings - Shandong Molong (00568) had the largest decrease, with a drop of 1.99% to 57.67% [2]. - Yisou Technology (02550) decreased by 0.99%, now holding 37.95% [2]. - Nanjing Panda Electronics (00553) saw a reduction of 0.98%, bringing its ownership to 42.65% [2]. - Other notable decreases include Kailai Ying (06821) at -0.95% (43.35%) and Meizhong Jiahe (02453) at -0.95% (32.06%) [2]. Group 3: Five-Day Changes - In the last five trading days, China Merchants Energy (01138) had the highest increase in ownership, up by 6.19% to 65.63% [3]. - Shandong Molong (00568) also saw a significant increase of 3.74% [3]. - Other companies with notable increases include Zhongchu Innovation (03931) at +3.62% (10.35%) and Youbao Online (02429) at +3.33% (17.38%) [3]. Group 4: Twenty-Day Changes - Over the past twenty days, Anjiren Food (02648) experienced the largest increase, up by 12.29% to 20.54% [4]. - China Merchants Energy (01138) also saw a significant increase of 9.07% [4]. - Other companies with notable increases include Yimai Sunshine (02522) at +7.70% (43.02%) and Lens Technology (06613) at +7.56% (13.64%) [4].

Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (00728) at 72.04%, Green Power Environmental (01330) at 69.16%, and China Shenhua (01088) at 67.97% [1] - Alibaba-W (09988), Horizon Robotics-W (09660), and Ping An of China (02318) saw the largest increases in holding amounts over the last five trading days, with increases of +14.898 billion, +1.834 billion, and +1.420 billion respectively [1] - The companies with the largest decreases in holding amounts over the last five trading days include Pop Mart (09992) with a decrease of -2.561 billion, Xiaomi Group-W (01810) with -2.531 billion, and Kangfang Biotech (09926) with -0.911 billion [2] Group 1: Top Holding Ratios - China Telecom (00728) has a holding ratio of 72.04% with 10 billion shares [1] - Green Power Environmental (01330) has a holding ratio of 69.16% with 280 million shares [1] - China Shenhua (01088) has a holding ratio of 67.97% with 2.296 billion shares [1] Group 2: Recent Increases in Holdings - Alibaba-W (09988) increased its holdings by +14.898 billion, adding 98.598 million shares [1] - Horizon Robotics-W (09660) increased its holdings by +1.834 billion, adding 17.948 million shares [1] - Ping An of China (02318) increased its holdings by +1.420 billion, adding 24.8703 million shares [1] Group 3: Recent Decreases in Holdings - Pop Mart (09992) decreased its holdings by -2.561 billion, reducing 9.2515 million shares [2] - Xiaomi Group-W (01810) decreased its holdings by -2.531 billion, reducing 45.9018 million shares [2] - Kangfang Biotech (09926) decreased its holdings by -0.911 billion, reducing 6.7244 million shares [2]

Core Viewpoint - The report from浦银国际 highlights the growing importance of intelligent driving chips in the automotive industry, particularly as the sector transitions into a new phase of development, with a focus on smart assisted driving as a core feature [1] Industry Summary - The intelligent driving chip industry is positioned as a high-value segment within the automotive supply chain, driven by advancements in smart driving technologies [1] - By 2025, Chinese automakers are expected to push for "intelligent driving equality," leading to a decrease in the price range of models equipped with high-speed NOA [1] - Leading new energy vehicle companies are advancing algorithm evolution based on end-to-end architecture, which will promote both volume and price increases for intelligent driving chips [1] Company Summary - The report initiates coverage on Horizon Robotics (09660) and Hezhima (000716), both receiving "Buy" ratings with target prices set at HKD 12 and HKD 21.4 respectively [1] - Local intelligent driving chip suppliers are expected to gain market share due to their cost-effective products and production experience, benefiting from the trend of domestic substitution [1] Market Data - According to Frost & Sullivan, the global automotive-grade SoC market reached RMB 57.9 billion in 2023 and is projected to grow to RMB 205.3 billion by 2028, with a compound annual growth rate (CAGR) of 29% [1] - In China, the automotive-grade SoC market size was RMB 26.7 billion in 2023, expected to increase to RMB 102 billion by 2028, capturing 50% of the global market share [1]

Core Viewpoint - The report from浦银国际 highlights the growing importance of intelligent driving chips in the automotive industry, particularly as the sector transitions into the second half of the new energy vehicle (NEV) development phase [1] Industry Summary - The intelligent driving chip industry is receiving an "overweight" rating, indicating strong growth potential as it becomes a core component of intelligent driving functions in vehicles [1] - The global automotive-grade SoC market is projected to grow from 57.9 billion RMB in 2023 to 205.3 billion RMB by 2028, with a compound annual growth rate (CAGR) of 29% [1] - China's automotive-grade SoC market is expected to increase from 26.7 billion RMB in 2023 to 102 billion RMB by 2028, capturing 50% of the global market share [1] Company Summary - The report initiates coverage on Horizon Robotics (09660) and Black Sesame Technologies (02533), both receiving "buy" ratings with target prices set at 12 HKD and 21.4 HKD respectively [1] - Domestic intelligent driving chip suppliers are anticipated to expand their market share rapidly, benefiting from competitive pricing and production experience, alongside the trend of domestic substitution [1] - The report emphasizes that both independent Chinese automakers and leading NEV companies are driving advancements in intelligent driving technology, which will enhance the demand for intelligent driving chips [1]

Core Insights - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (00728) at 72.05%, Green Power Environmental (01330) at 69.19%, and China Shenhua (01088) at 67.94% [1] - Alibaba-W (09988), Horizon Robotics-W (09660), and BYD Company (01211) saw the largest increases in holding amounts over the last five trading days, with increases of +126.42 billion, +37.06 billion, and +23.82 billion respectively [1] - The largest decreases in holding amounts over the last five trading days were recorded by the Tracker Fund of Hong Kong (02800) at -19.72 billion, China Telecom (00728) at -13.62 billion, and Kuaishou-W (01024) at -10.29 billion [1] Hong Kong Stock Connect Latest Holding Ratios - China Telecom (00728): 100.01 billion shares, 72.05% holding ratio [1] - Green Power Environmental (01330): 2.80 billion shares, 69.19% holding ratio [1] - China Shenhua (01088): 22.95 billion shares, 67.94% holding ratio [1] - Other notable companies include Kaisa New Energy (01108) at 67.53% and COSCO Shipping Energy (01138) at 65.47% [1] Recent Increases in Holdings (Last 5 Trading Days) - Alibaba-W (09988): +126.42 billion, +88.22 million shares [1] - Horizon Robotics-W (09660): +37.06 billion, +361.88 million shares [1] - BYD Company (01211): +23.82 billion, +22.64 million shares [1] - Other companies with significant increases include Meituan-W (03690) and Ping An Insurance (02318) [1] Recent Decreases in Holdings (Last 5 Trading Days) - Tracker Fund of Hong Kong (02800): -19.72 billion, -73.80 million shares [3] - China Telecom (00728): -13.62 billion, -233.30 million shares [3] - Kuaishou-W (01024): -10.29 billion, -14.02 million shares [3] - Other companies with notable decreases include Pop Mart (09992) and Meitu (01357) [3]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook based on its position as a key supplier in the domestic smart driving chip and algorithm market, benefiting from the trend of automotive intelligence [4]. Core Insights - The company achieved a sales revenue of 1.567 billion yuan in the first half of 2025, representing a year-on-year growth of 67.06%, while the net profit was -5.233 billion yuan, slightly worse than the previous year's -5.089 billion yuan [1]. - The market share for basic and overall assisted driving solutions among Chinese automakers reached 45.8% and 32.4%, respectively, maintaining the leading position [1]. - The shipment of the company's Journey series processors doubled to 1.98 million units, with hardware supporting highway assisted driving reaching 980,000 units, a sixfold increase compared to the same period last year [1]. - The sales gross margin decreased to 65.36% from 79.04% year-on-year, primarily due to changes in revenue composition, with a significant increase in automotive product solutions [2]. - The company has secured nearly 400 new model designations, with over 100 models featuring highway assisted driving capabilities, and is actively expanding its overseas customer base [3]. Financial Forecast and Valuation - Projected revenues for 2025, 2026, and 2027 are 3.524 billion yuan, 5.254 billion yuan, and 7.898 billion yuan, respectively, with expected net profits of -1.836 billion yuan, -1.019 billion yuan, and 211 million yuan [4][6]. - The company is expected to benefit from the automotive intelligence trend, with a projected annual revenue growth rate of 48% in 2026 and 49% in 2027 [6][12]. - The earnings per share (EPS) is forecasted to improve from -0.13 yuan in 2026 to 0.02 yuan in 2027 [6].

Core Viewpoint - In the first half of 2025, the company achieved a revenue of 1.57 billion yuan, representing a year-on-year growth of 67.1% [2][6][7] Revenue and Profitability - The company's net profit for the first half of 2025 was -5.23 billion yuan, slightly worse than -5.10 billion yuan in the first half of 2024 [2][7] - Adjusted operating loss was -1.11 billion yuan, compared to -820 million yuan in the same period last year [2][7] - The gross profit margin for the first half of 2025 was 65.36%, a decrease of 13.7 percentage points year-on-year [3][15] - The net profit margin improved by 209.6% year-on-year, reaching -334% [3][15] Business Segmentation - Revenue from automotive solutions was 1.516 billion yuan, an increase of 66.1% year-on-year [11] - Revenue from automotive product solutions surged by 250.0% to 778 million yuan, driven by the rapid growth in shipments of the Chengcheng 6 series hardware [11] - Revenue from licensing and service business was 738 million yuan, up 6.9% year-on-year, as more clients integrated the company's IP into their software stacks [11] - Non-automotive solutions revenue reached 50 million yuan, a significant increase of 134.5% [11] Market Position and Growth Drivers - The company maintained the leading market share in basic and overall assisted driving solutions in China, with shares of 45.8% and 32.4% respectively [20] - The shipment volume of the Chengcheng series hardware reached 1.98 million units, doubling year-on-year [3][22] - The number of new model approvals reached nearly 400, with over 100 models approved for highway-assisted driving and above [3][22] Product Development and Partnerships - The Chengcheng 6 series chips are accelerating in mass production, with abundant orders on hand [4][6] - The company is collaborating with Bosch to develop a new multifunctional camera platform based on the Chengcheng 6B, expected to enter mass production by mid-2026 [5][33] - The Horizon SuperDrive (HSD) system, based on the Chengcheng 6P, is set to become a benchmark for urban assisted driving solutions [30][35] Global Expansion and Future Outlook - The company is expanding its global business layout and deepening cooperation with leading international automotive manufacturers [47] - The expected cumulative shipment of the Chengcheng series processing hardware is projected to exceed 10 million units by 2025, marking a significant milestone for the company [32][40]