Core Insights - On September 2, 2025, Alibaba-W (09988), Xiaomi Group-W (01810), and SMIC (00981) were the top three companies by trading volume in the southbound trading of the Stock Connect, with trading amounts of 86.47 billion, 60.46 billion, and 59.59 billion respectively [1] - In the southbound trading of the Shenzhen-Hong Kong Stock Connect, SMIC (00981), Alibaba-W (09988), and Xiaomi Group-W (01810) also ranked as the top three, with trading amounts of 48.12 billion, 45.52 billion, and 34.29 billion respectively [1] Southbound Trading Highlights - **Top Active Companies in Southbound Trading (Hong Kong Stock Connect)** - Alibaba-W (09988): Trading amount of 86.47 billion, net buying of +20.88 billion [2] - Xiaomi Group-W (01810): Trading amount of 60.46 billion, net selling of -5.92 billion [2] - SMIC (00981): Trading amount of 59.59 billion, net buying of +4.18 billion [2] - **Top Active Companies in Southbound Trading (Shenzhen-Hong Kong Stock Connect)** - SMIC (00981): Trading amount of 48.12 billion, net selling of -14.55 billion [2] - Alibaba-W (09988): Trading amount of 45.52 billion, net buying of +13.55 billion [2] - Xiaomi Group-W (01810): Trading amount of 34.29 billion, net buying of +1.81 billion [2]

Group 1: Hong Kong Stock Market Performance - Midea Group (00300) increased nearly 3% with Q2 revenue of 123.9 billion yuan, a year-on-year increase of 11.0%, and net profit of 13.59 billion yuan, up 15.1%. This marks the company's first interim dividend of 5 yuan per 10 shares (tax included) [2] - Sanofi (02257) saw a midday increase of over 12% as its mid-term shareholder loss narrowed by 91%, with STP705 expected to complete commercialization within the year [2] - Ocean Park (02255) rose nearly 3% in early trading, but reported a 14.2% year-on-year decline in revenue to 686 million yuan, with a loss of approximately 296 million yuan due to decreased visitor numbers and consumer spending [2] Group 2: Company Highlights - InnoCare Pharma (02577) increased over 6% with a sales revenue of 553 million yuan, a year-on-year growth of 43.4%, and a gross margin of 6.8%, marking a significant improvement of 28.4 percentage points [3] - Geekplus (02590) rose over 5%, achieving over 30% year-on-year revenue growth as a leader in global warehouse fulfillment AMR [3] - China Nonferrous Mining (01258) increased over 3.8% due to rising copper prices improving mid-term performance, with ongoing resource expansion and acquisitions [3] Group 3: Other Notable Movements - Hengrui Medicine (01276) rose over 1.5% after receiving drug registration approval for EZH2 inhibitor [3] - Horizon Robotics (09660) fell nearly 1% despite exceeding market expectations in revenue, with Goldman Sachs maintaining a positive outlook on HSD system mass production [3] - BYD Electronics (00285) dropped over 0.5% with a nearly 14% year-on-year increase in net profit, accelerating its layout in AI data centers and robotics [3] - Shandong Gold (01787) fell nearly 2% as it plans to raise approximately 3.9 billion HKD through a discounted placement to repay company debts [3]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to HKD 12.3, reflecting a potential upside of 28.1% from the current price of HKD 9.60 [1][3][7]. Core Insights - The company reported a strong revenue growth of 68% year-on-year, reaching RMB 1.57 billion in the first half of 2025, primarily driven by a significant increase in automotive product solutions, which grew by 250% [1][7]. - Despite a decline in gross margin by 13.7 percentage points due to changes in product mix, the overall gross margin remains high at 65.4% [1][7]. - The company continues to invest heavily in R&D, leading to a slight increase in net loss to RMB 5.2 billion in the first half of the year [1][7]. - The management emphasizes the competitive advantage in the accelerating adoption of assisted driving technologies in China [1][7]. Financial Overview - Revenue projections show a steady increase from RMB 1.55 billion in FY23A to RMB 8.73 billion in FY27E, with year-on-year growth rates of 71.3% in FY23A and 53.6% in FY24A [2][11]. - Gross margin is expected to stabilize above 50% in the long term, with specific forecasts of 63.8% for FY25E and 58.1% for FY26E [2][11]. - The net profit is projected to remain negative in the coming years, with estimates of RMB -6.93 billion in FY25E and RMB -1.96 billion in FY26E [2][11]. Market Position - The company holds a market share of 45.8% in basic assisted driving solutions and 32.4% in overall assisted driving solutions, reinforcing its leadership in the Chinese automotive technology market [1][7]. - The product solutions segment is anticipated to be the core growth engine, with revenue expected to reach RMB 2.1 billion this year, driven by a shift towards higher-value products [7]. Shareholder Structure - Major shareholders include SAIC QIJUN I HLDG LTD with 9.3% and GIL TRUST LIMITED with 8.1% [4]. Stock Performance - The stock has shown strong performance with a 31.3% absolute return over the past month and a 26.8% return over the past three months [5].

Core Viewpoint - Horizon Robotics-W (09660) reported a significant increase in revenue and profitability for the first half of 2025, indicating strong growth momentum in the autonomous driving technology sector [1] Financial Performance - The company achieved a revenue of 1.567 billion yuan for the first half of 2025, representing a year-on-year growth of 67.6% [1] - Gross profit reached 1.024 billion yuan, with a comprehensive gross margin of 65.4% [1] - Cash reserves stood at 16.1 billion yuan, reflecting a solid financial position [1] Market Insights - Goldman Sachs noted that the revenue growth of 68% exceeded expectations, primarily driven by increased shipments of the Journey6 model [1] - The firm expressed a positive outlook on the mass production of the Horizon Super Driving (HSD) system starting in the second half of the year [1] - The company shipped 980,000 units of its NOA function products, accounting for 50% of total shipments, which contributed to an increase in average selling prices [1] Growth Prospects - Bank of America Securities, after attending the investor meeting post-earnings report, expressed increased optimism regarding the company's growth prospects due to successful vehicle design integrations in domestic and international markets [1] - The bank anticipates that the company will secure design orders for high-end HSD solutions from at least 4-5 automotive manufacturers this year, which is expected to boost shipments of the J6P chip from an estimated 40,000 units in 2025 to 430,000 units in 2026 [1]

Core Viewpoint - Horizon Robotics-W (09660) reported a significant increase in revenue and profitability for the first half of 2025, indicating strong growth momentum in the autonomous driving sector [1] Financial Performance - The company achieved a revenue of 1.567 billion yuan, representing a year-on-year growth of 67.6% [1] - Gross profit reached 1.024 billion yuan, with a comprehensive gross margin of 65.4% [1] - Cash reserves stood at 16.1 billion yuan, reflecting a solid financial position [1] Market Insights - Goldman Sachs noted that the revenue growth of 68% exceeded expectations, primarily driven by the increased shipment of the Journey 6 model [1] - The company’s NOA function product shipments reached 980,000 units, accounting for 50% of total shipments, which contributed to an increase in average selling prices [1] - Bank of America Securities expressed optimism about the company's growth prospects following a recent investor meeting, highlighting successful vehicle design integrations in domestic and international markets [1] Future Outlook - The company is expected to secure design orders for high-end HSD solutions from at least 4-5 automotive manufacturers this year [1] - Projections indicate an increase in J6P chip shipments from 40,000 units in 2025 to 430,000 units in 2026 [1]

Core Viewpoint - The company is experiencing significant revenue growth driven by the mass production of the J6 series and is maintaining a leading market share in the ADAS front-view integrated machine and autonomous driving computing solutions market in China [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 1.567 billion, a year-on-year increase of 67.6%, surpassing Bloomberg consensus expectations of 1.435 billion [2]. - The revenue from products and solutions reached 778 million, with a year-on-year increase of 250%, and delivery volume approached 2 million units, up 106% year-on-year [2]. - The average selling price increased by 70% year-on-year, with mid-to-high-end product revenue accounting for over 80% of the products and solutions revenue [2]. Group 2: Production and Market Expansion - The HSD has secured over 10 models from multiple OEMs, with mass production expected in H2 2025, which is anticipated to drive short-term growth [2]. - The company has made significant strides in internationalization, securing 30 domestic models from 9 joint venture car companies and 2 foreign car companies for overseas models, with an expected total delivery of over 7.5 million units [2]. - Collaborations with Bosch, Denso, and Continental are expected to enhance the company's market position through partnerships with overseas Tier 1 suppliers [2]. Group 3: Future Growth Potential - The company is expected to collaborate with Robotaxi operators in H2 2025, aiming to deploy tens of millions of HSD units within 3-5 years, which will accelerate the deployment of Robotaxi technology [2].

Group 1 - The core viewpoint of the article is that Horizon Robotics-W (09660) reported a 68% year-on-year revenue growth in the first half of the year, exceeding expectations, primarily due to the increase in shipments of the Journey6 model [1] - Goldman Sachs holds a positive outlook on the mass production of Horizon's High-Definition Driving (HSD) system starting in the second half of the year [1] - In the first half of the year, Horizon Robotics shipped 980,000 units of its NOA function products, accounting for 50% of total shipments, which contributed to an increase in average selling price [1] Group 2 - The company is expected to continue upgrading its product mix towards higher-end integrated software and hardware solutions [1] - Goldman Sachs maintains a "Buy" rating on the stock, raising the target price from HKD 13.13 to HKD 14 [1]

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]