Investment Rating - The report maintains a "Buy" rating for the company [2][7] Core Insights - The cumulative shipment of the company's "Zhengcheng" series is expected to exceed 10 million units, with over 8 million units already shipped. The company has established close partnerships with leading Tier-1 companies such as Bosch, Denso, and ZF, supporting advanced driver assistance and high-level autonomous driving solutions [5] - The HSD system, the first full-stack development of its kind in China, is designed for urban driving assistance and is expected to be integrated into strategic models of several leading OEM brands this year [6] Financial Performance and Projections - The company is projected to achieve revenues of 35.62 billion, 55.29 billion, and 79.83 billion yuan for the years 2025, 2026, and 2027 respectively, with net profits expected to be -1.969 billion, -0.945 billion, and 0.105 billion yuan for the same years [7][9] - The revenue growth rates are forecasted at 54%, 49%, and 55% for the years 2025, 2026, and 2027 respectively, while the net profit growth rates are expected to be 135%, -184%, and 52% [9][10]

Core Insights - The autonomous vehicle (AV) market is projected to reach a potential size of $1.2 trillion by 2040, covering various sectors including automotive, trucking, logistics, agriculture, and mining [1][7] - Currently, commercial AV deployment is scaling, with 7 cities globally offering commercial robotaxi services and an additional 20 cities set to launch soon [1][7] - The report encompasses companies with a combined market capitalization of approximately $10 trillion, highlighting their strategies in AV technology development and market share competition [1][3] Market Overview - The AV market is expected to grow from $137 billion in 2024 to $1.2 trillion by 2040, with significant compound annual growth rates (CAGR) across various sectors [7] - The automotive sector alone is anticipated to reach $686.89 billion by 2040, with a CAGR of 14.6% from $78.08 billion in 2024 [10] - The trucking sector is projected to grow to $353.52 billion by 2040, with a CAGR of 14.5% [10] Key Companies and Their Roles - Major players in the OEM sector include companies like Caterpillar, Deere, Daimler Truck, and Toyota, all of which are investing in AV technologies and partnerships [4][9] - Chinese companies such as Xiaomi and XPeng are also significant, with Xiaomi focusing on LiDAR technology and XPeng developing the XNGP system for nationwide deployment [8][10] - In the software domain, companies like Google (Waymo) and Baidu (Apollo Go) are leading in AV commercialization, with Waymo planning to provide 250,000 paid rides weekly by 2025 [8][10] Technology and Innovation - The semiconductor sector plays a crucial role in AV development, providing essential capabilities such as AI training and sensor processing [11] - Key semiconductor companies include Nvidia, Qualcomm, and Mobileye, with Nvidia expected to generate $1.7 billion in automotive revenue by 2025 [11] - LiDAR technology is dominated by companies like Hesai and RoboSense, with significant revenue growth projected in the coming years [8][11] Future Projections - By 2030, it is estimated that 10% of Deere's revenue will come from recurring sources related to AV solutions in agriculture and construction [9] - Daimler Truck's Torc system is expected to contribute $1.5 billion in profit by 2035, representing 30% of its adjusted EBIT in 2024 [9] - Horizon Robotics anticipates that 97% of its revenue will come from AV-related solutions by 2024, with significant market share growth expected by 2030 [9][10]

Investment Rating - The automotive industry is rated as "Overweight" with expectations of outperforming the market in the next six months [52]. Core Views - The automotive sector saw a weekly increase of 2.88%, outperforming the CSI 300 index by 0.93 percentage points during the period from June 22 to June 27, 2025 [10][41]. - Retail sales of passenger vehicles in June increased by 24% year-on-year, with a total of 1,008.6 million units sold year-to-date, reflecting an 11% increase compared to the previous year [6][42]. - The new Xiaomi YU7 SUV model launched successfully, achieving over 240,000 pre-orders within 18 hours of its release [3][42]. Summary by Sections Market Review - The automotive sector's performance for the week (June 22-27, 2025) showed a 2.88% increase, with the passenger vehicle segment rising by 0.08% and commercial vehicles by 1.01% [10][41]. - The automotive parts sector increased by 4.62%, while the automotive services sector rose by 4.27%, both outperforming the CSI 300 index [10][41]. Valuation Levels - As of June 27, 2025, the automotive industry's PE-TTM was 25.9, up by 0.72 from the previous week. The valuations for passenger vehicles, commercial vehicles, and parts were 25.37, 35.87, and 24.46 respectively [11][41]. New Vehicle Launches - A total of 28 new models were launched during the week, including the Xiaomi YU7, which is priced between 25.35 and 32.99 million yuan [38][40]. Investment Recommendations - The report suggests that the automotive sector is expected to continue its upward trend, with specific focus on the performance of electric vehicles and related technologies [41].

Core Insights - The report from Bank of America Securities highlights the rapid transformation in China's smart automotive industry driven by intense competition and the accelerated application of autonomous driving technologies by companies like BYD [1][2] Industry Overview - The penetration rate of L2+/L3 autonomous driving in China is projected to rise from 27% in 2025 to 80% by 2030, with sales of vehicles equipped with these features expected to grow from 6.1 million units in 2025 to 18.4 million units by 2030, reflecting a CAGR of 25% [2] - The Robotaxi market is anticipated to see explosive growth, with sales expected to increase from 2,500 units in 2025 to 400,000 units by 2030, representing a CAGR of 176% [3] Key Companies and Technologies - Companies such as Hesai (HSAI.US), Horizon (09660), and NIO (01316) are identified as key players in the smart automotive supply chain, particularly in laser radar, autonomous driving chips, and drive-by-wire chassis [1][4] - The report emphasizes that the integration of sensing, processing, and control systems is crucial for autonomous driving capabilities, while smart cockpit systems include components like cockpit domain controllers and heads-up displays [3] Component Market Insights - The estimated value of smart automotive components is $2,400 for entry-level vehicles and $6,000 for high-end models [4] - The penetration rate of laser radar in Chinese passenger vehicles is expected to increase from 6% in 2024 to 40% by 2030, driven by safety considerations and decreasing costs [4] - The market for autonomous driving and advanced driver-assistance system chips is projected to grow at a CAGR of 25% from 2024 to 2030 [4] Ratings and Price Targets - Bank of America Securities has provided ratings and price targets for several companies, indicating strong upside potential for stocks like PONY US, XPEV US, and HSAI US, with potential increases ranging from 24% to 61% [5][6]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to less than 35% [5][9]. Core Insights - The company is positioned to benefit from the rapid increase in high-level advanced driver-assistance systems (ADAS) penetration, with expectations of significant revenue growth driven by partnerships with major automotive manufacturers like BYD [5][7]. - The projected net profits for 2025, 2026, and 2027 are estimated to be -1.81 billion, -0.99 billion, and 0.11 billion RMB respectively, with corresponding EPS of -0.14, -0.07, and 0.01 RMB [7][8]. Company Overview - The company operates in the mechanical equipment industry and focuses on providing third-party ADAS solutions, including self-developed high-performance chips and intelligent driving algorithms [5][7]. - As of June 23, 2025, the H-share price was 6.37 HKD, with a market capitalization of approximately 884.24 billion HKD [2]. Financial Performance - The company reported a revenue of 2.38 billion RMB in 2024, with a year-on-year growth of 54%, and anticipates a revenue increase of 50% in 2025 [5][7]. - The gross margin for the company is reported at 77%, indicating strong profitability in its operations [5]. Market Potential - The penetration rate of high-level NOA (Navigation on Autopilot) is currently low, with only 8.6% of vehicles equipped with such features in 2024, suggesting significant growth potential as these technologies become more widespread [7]. - The market for intelligent driving chips is expected to exceed 100 billion RMB, with a projected annual growth rate of over 50% from 2025 to 2027 [7]. Future Projections - The company plans to raise over 4.7 billion HKD through a share placement to optimize its capital structure and support business expansion [7]. - The anticipated financial performance includes a net profit turnaround by 2027, with expectations of positive earnings for the first time in several years [8].

Group 1 - The core viewpoint of the article highlights a significant surge in Hong Kong's autonomous driving concept stocks, indicating strong market interest and potential growth in this sector [1] Group 2 - Zhejiang Shibao (01057.HK) experienced a rise of over 24%, reflecting investor confidence and enthusiasm in the autonomous driving market [1] - Youjia Innovation (02431.HK) saw an increase of more than 10%, suggesting positive market sentiment towards innovative technologies in the automotive industry [1] - Horizon Robotics (09660.HK) rose by over 4%, indicating a growing recognition of its contributions to the autonomous driving sector [1] - Great Wall Motors (02333.HK) and other related companies also followed suit with upward movements in their stock prices, showcasing a broader trend in the industry [1]

Core Viewpoint - The Hong Kong stock market is witnessing a surge in smart driving concept stocks, particularly driven by Tesla's recent launch of its Robotaxi pilot service in Austin, Texas, which has positively impacted related companies in the sector [1] Group 1: Stock Performance - Youjia Innovation (02431.HK) increased by 7.95% [1] - Horizon Robotics-W (09660.HK) rose by 4.40% [1] - Zhixing Technology (01274.HK) saw a gain of 3.10% [1] - Sutech Juchuang (02498.HK) experienced a rise of 1.59% [1] Group 2: Tesla's Robotaxi Service - Tesla initiated its Robotaxi pilot operation on June 22 in Austin, Texas, with an initial fleet of 10 Model Y vehicles [1] - Passengers are required to pay a fixed fee of $4.20 for the Robotaxi service [1]

Investment Rating - The report initiates coverage with a "Buy" rating for Horizon Robotics, setting a target price of HK$8.60, representing a potential upside of 33% from the current price of HK$6.46 [1][6][10]. Core Insights - Horizon Robotics is positioned as a key beneficiary in the high-end assisted driving industry, with a strong market share exceeding 40% in China's OEM advanced driver assistance systems (ADAS) market as of 2024 [7][29]. - The company is expected to benefit significantly from the global growth potential of smart driving, with projections indicating that global and Chinese smart vehicle sales will reach approximately 80 million and 30 million units by 2030, respectively [7][29]. - The unique BPU (Brain Processing Unit) architecture of Horizon Robotics provides a competitive edge by optimizing hardware and software collaboration, achieving higher computational efficiency at lower power consumption [30][42]. Financial Projections - Revenue forecasts for Horizon Robotics are projected at RMB 3.43 billion, RMB 5.41 billion, and RMB 7.46 billion for the years 2025, 2026, and 2027, respectively, reflecting year-on-year growth rates of 43.7%, 57.9%, and 37.9% [9][31]. - The company is expected to achieve profitability in 2027, with a projected net profit of RMB 901 million, following losses in the preceding years [9][31]. Market Comparison - The report compares Horizon Robotics with peers such as NVIDIA, ARM, Mobileye, and Black Sesame Intelligence, applying a 20x price-to-sales (P/S) ratio to derive the target price [32][71]. - The competitive landscape indicates that Horizon Robotics has established itself as a leader in the mid-to-low-end smart driving hardware market, with plans to penetrate the high-end market further with the launch of the Journey 6 series chips [71][72]. Product Solutions - Horizon Robotics offers three main smart driving solutions: Horizon Mono, Horizon Pilot, and Horizon SuperDrive, catering to different levels of driving assistance [44][60]. - The Journey 6 series chips, set to launch in 2025, will cover a wide range of smart driving needs, enhancing the company's product matrix [62][67].

Group 1 - HSBC Research initiates a "Buy" rating for Horizon Robotics with a target price of HKD 10.2 [1] - Horizon Robotics currently serves over 40 automotive manufacturers, including BYD, Geely, and Li Auto, with more than 310 vehicle models [1] - The company is expected to achieve a compound annual growth rate (CAGR) of 64% in revenue from 2025 to 2027 and is projected to turn profitable by 2028 [1] Group 2 - Despite NVIDIA's dominance in the high-end automotive market, Horizon Robotics' lower chip prices are anticipated to enhance its market share in China, increasing from approximately 15% in 2024 to about 25% by 2027 [1] - The current trade tensions are believed to provide Horizon Robotics with higher supply chain security [1]

Core Insights - The 2025 International Automotive and Supply Chain Expo in Hong Kong showcased Horizon Robotics' Horizon SuperDrive (HSD) and the Journey 6 series, highlighting the future direction of intelligent driving technology [1][2] - Horizon Robotics' HSD received the 2025 China Automotive Supply Chain Innovation Achievement Award for its human-like driving experience and reliable technology [2] - The company aims to provide optimal performance and flexible upgrade solutions for intelligent driving, leveraging its decade-long experience in hardware-software integration [2][4] Company Developments - Horizon Robotics presented its full-stack technology achievements at the expo, emphasizing its role as a leader in the global automotive industry's transformation [2] - The HSD system is the first fully integrated urban auxiliary driving system developed in China, utilizing the Journey 6P computing solution for enhanced safety and user experience [2][3] - The company has partnered with Chery Group for the mass production of HSD, which will debut in the "Falcon" model under the Starway brand in 2025 [3] Market Position - Horizon Robotics is a leading provider of advanced driver assistance and high-level autonomous driving solutions, having established partnerships with over 40 automotive brands and produced over 8 million units of its solutions [4] - The company has secured collaborations with major Tier 1 suppliers like Bosch, Denso, and ZF, contributing to the development of differentiated intelligent driving solutions [4] - Horizon Robotics plans to raise approximately HKD 46.74 billion through a share placement to accelerate business expansion and enhance R&D capabilities [4]