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。 ...

Core Viewpoint - Horizon Robotics (09660.HK) reported significant revenue growth but also an increase in losses for the second quarter and first half of 2025, driven by ongoing R&D investments and product optimization in a competitive smart driving market [1][10]. Financial Performance - Revenue for the first half of 2025 reached 1.567 billion yuan, a year-on-year increase of 67.6% [2] - Automotive solutions contributed 1.516 billion yuan, growing by 66% [2] - Product solutions surged to 777 million yuan, marking a 250% increase [2] - Gross profit was 1.024 billion yuan, up 38.6%, with a gross margin of 65.4% [2] - Operating loss expanded to 1.592 billion yuan, a 44% increase [2] - Net loss for the period was 5.233 billion yuan, up 2.6% [2] - R&D expenditure reached 2.3 billion yuan, increasing by 62% [2] - Cash reserves stood at 16.1 billion yuan [2] Highlights and Progress - Revenue growth was driven by both volume and price increases, with product solutions revenue reaching 778 million yuan, a 3.5-fold increase [4] - Shipment volume of automotive-grade processing hardware doubled to 1.98 million units [4] - Average selling price of product solutions increased to 1.7 times that of the previous year due to a higher proportion of high-value chips [4] - The share of mid-to-high-end assisted driving products rose to 49.5% of total shipments, contributing over 80% of revenue [5] - Software licensing and service revenue grew to 738 million yuan, a 6.9% increase [6] - Market share in China's autonomous brand automotive market reached 32.4% for assisted driving solutions and 45.8% for ADAS front-view integrated machines, both leading the market [6] - Successful international collaborations with major automotive groups, including partnerships with Volkswagen and Japan's largest automotive group, have been established [6] Future Outlook - The focus is on the mass production of high-level driving solutions (HSD), with several models already designated for production [8] - Improvement in profitability is anticipated as high-end products continue to scale and the HSD solution is launched [8] - Global expansion efforts with international automotive companies and Tier 1 suppliers are expected to create new growth opportunities [8]

Core Insights - Horizon Robotics (09660.HK) reported a revenue of 1.567 billion RMB for the first half of 2025, marking a year-on-year growth of 67.6% [1] - The company's gross profit reached 1.024 billion RMB, with a gross margin of 65.4%, reflecting a 38.6% increase year-on-year [1] - Cash reserves are robust, amounting to 16.1 billion RMB, providing a solid financial foundation for future growth [1] Business Performance - Revenue from automotive products and solutions surged to 778 million RMB, a remarkable year-on-year increase of 250.0%, with a shipment volume of 1.98 million units, doubling from the previous year [1][2] - The shipment of hardware supporting highway-assisted driving reached 980,000 units, a sixfold increase compared to the same period last year, contributing 80% of the revenue from products and solutions [1] Software and Services - Horizon Robotics generated 739 million RMB from software and service business, a 6.9% increase year-on-year, supported by the significant rise in product and solution revenue [2] - The dual-core business model of products and solutions alongside software and services is expected to sustain the company's growth momentum [2] Market Position and Partnerships - As of August 2025, the cumulative shipment of the Journey series processing hardware surpassed 10 million units, making Horizon the first smart driving technology company in China to achieve this milestone [2] - The company secured nearly 400 new model designations, with over 100 models featuring highway-assisted driving capabilities [2][3] International Expansion - Horizon is actively expanding its international presence, collaborating with major global automotive brands, including Volkswagen and Japan's largest automotive group [3] - The new generation basic assisted driving solution, Horizon Mono, is expected to deliver 7.5 million units over its lifecycle, enhancing the company's sales potential [3] Research and Development - R&D expenditure reached 2.3 billion RMB, a 62% increase year-on-year, primarily focused on urban driving system solutions [4] - The Horizon Super Drive (HSD) system has undergone significant iterations, offering advanced capabilities for complex urban driving tasks [4] - HSD has already secured multiple model designations, with the first model, the Xingtu E05, set to enter mass production soon [4]

Core Insights - On August 28, Horizon Robotics-W made its debut on the Hong Kong Stock Connect active trading list for the first time in a month [2] - The total trading volume of active stocks on the Hong Kong Stock Connect reached HKD 849.44 billion, accounting for 40.48% of the day's total trading amount, with a net sell amount of HKD 138.75 billion [2] - Among the active stocks, SMIC had the highest trading volume at HKD 171.83 billion, followed by Meituan-W and the Tracker Fund of Hong Kong with HKD 158.03 billion and HKD 119.69 billion respectively [2] Trading Activity Summary - Horizon Robotics-W recorded a trading volume of HKD 24.76 billion on the same day, with a net buying amount of HKD 2.41 billion, and its stock price increased by 14.74% [2][3] - The stocks with the highest number of appearances on the active trading list over the past month were Alibaba-W and Tencent Holdings, each appearing 23 times, indicating strong interest from Hong Kong Stock Connect funds [2] - The trading performance of other notable stocks included Tencent Holdings with a trading volume of HKD 54.76 billion and a net sell of HKD 5.84 billion, and Alibaba-W with a trading volume of HKD 111.42 billion and a net buy of HKD 3.30 billion [2]

Group 1 - On August 28, 2025, the top three companies by trading volume in the Hong Kong Stock Connect (southbound) were SMIC (00981) with a trading volume of 11.618 billion, Meituan-W (03690) with 9.659 billion, and the Tracker Fund of Hong Kong (02800) with 7.940 billion [1][2] - In the Shenzhen-Hong Kong Stock Connect (southbound), the top three companies were Meituan-W (03690) with a trading volume of 6.145 billion, SMIC (00981) with 5.565 billion, and Alibaba-W (09988) with 4.726 billion [1][2] Group 2 - In the Hong Kong Stock Connect (southbound), the net buying amounts for the top three companies were SMIC (00981) with +0.575 billion, Meituan-W (03690) with +0.630 billion, and Alibaba-W (09988) with +0.706 billion [2] - The Tracker Fund of Hong Kong (02800) had a significant net outflow of -7.885 billion, indicating a strong selling pressure [2] - In the Shenzhen-Hong Kong Stock Connect (southbound), Meituan-W (03690) experienced a net outflow of -0.297 billion, while SMIC (00981) had a net inflow of +0.318 billion [2]

Core Insights - Horizon Robotics reported impressive financial results for the first half of 2025, achieving a revenue of 1.567 billion yuan, a year-on-year increase of 67.6%, marking a historical high [1] - The company's gross profit reached 1.024 billion yuan, with a gross margin of 65.4%, maintaining an industry-leading position [1] - As of June 30, 2025, the company had cash reserves of 16.1 billion yuan, providing ample resources for future R&D and market expansion [1] Industry Trends - The Chinese smart driving market is experiencing a historic turning point, with the penetration rate of assisted driving in the passenger car market exceeding 60% for the first time in the first half of 2025 [1] - The demand for high-level assisted driving systems is surging, with the market share of domestic brands in the passenger car market exceeding 63% [5] - The penetration rate of assisted driving features has increased from 51% at the end of 2024 to 59% in the first half of 2025 [5] Business Performance - Horizon's product and solution business revenue grew 3.5 times year-on-year to 778 million yuan, with a shipment volume of 1.98 million units, doubling compared to the previous year [3] - The company achieved a significant increase in both revenue and shipment volume, with mid-to-high-level product solutions accounting for 49.5% of total shipments, contributing over 80% of the revenue from the product and solution business [3][5] - The software and licensing service business also saw stable growth, with revenue of 738 million yuan, a year-on-year increase of 6.9% [5] Technological Advancements - Horizon's R&D expenditure reached 2.3 billion yuan in the first half of 2025, a 62% increase year-on-year, primarily focused on cloud service resources and urban intelligent driving system solutions [6] - The Horizon SuperDrive (HSD) system, based on the Journey 6P hardware, boasts a computing power of 560 TOPS and features an end-to-end architecture for low-latency processing [7] - The HSD system has been recognized for its advanced decision-making capabilities in complex urban scenarios, enhancing user experience [7] Market Position - Horizon's market share in the domestic assisted driving computing solution market rose to 32.4%, while its market share in the ADAS front-view integrated machine market reached 45.8% [10] - The company has secured partnerships with 27 OEMs, including all top ten Chinese OEMs, and has received nearly 400 model designations [10] - Horizon has established deep collaborations with global automotive giants, marking a significant recognition of Chinese smart driving technology in mainstream global markets [10][12] Future Outlook - The market for urban high-level intelligent driving (NOA) is projected to approach 55 billion yuan by 2025 and may exceed 100 billion yuan by 2027 [5] - Horizon's CEO expressed confidence in the future market potential, particularly in the segment of passenger cars priced above 100,000 yuan, which constitutes about 80% of total sales [9] - The company is poised for a new growth cycle with the global launch of the HSD system and large-scale production of the Journey 6 series [12]