Investment Rating - The automotive sector is rated as "Outperform" with expectations of beating the market in the next six months [45]. Core Insights - The automotive sector saw a 2.4% increase from May 12 to May 16, outperforming the CSI 300 index by 1.29 percentage points [10]. - The passenger vehicle segment rose by 4.43%, while commercial vehicles declined by 1.7% [10]. - Retail sales of passenger vehicles increased by 12% year-on-year in the first two weeks of May, with a month-on-month increase of 34% [6]. - The overall PE-TTM for the automotive industry is 26.74, up 0.64 from the previous week [11]. Summary by Sections Market Performance - The automotive sector's performance from May 12 to May 16 showed a 2.4% increase, with the passenger vehicle segment leading at 4.43% [10]. - The commercial vehicle segment decreased by 1.7%, while the truck and bus segments also saw declines [10]. Valuation Levels - As of May 16, the PE-TTM for the automotive industry is 26.74, with passenger vehicles at 27.75, commercial vehicles at 33.99, and parts at 24.85 [11][35]. - The passenger vehicle segment increased by 1.17, while commercial vehicles decreased by 0.63 [11]. Sales and Production Data - In the first eleven days of May, retail sales of passenger vehicles reached 574,000 units, a 12% increase year-on-year [6]. - Cumulative retail sales for the year reached 7.446 million units, up 8% [6]. Strategic Collaborations - Huawei and UBTECH signed a comprehensive cooperation agreement focusing on embodied intelligence and humanoid robotics [3]. - The collaboration aims to enhance product technology development and application scenarios [3]. Material Prices - As of May 16, the aluminum index is at 20,107.5, copper at 77,596.36, and rebar at 3,083.42, with respective weekly changes of 3.03%, 0.93%, and 1.98% [24][35].

Investment Rating - The report initiates coverage with a "Buy-A" investment rating [4][5]. Core Viewpoints - The company is positioned as a leading domestic ADAS chip manufacturer, focusing on high-level intelligent driving solutions, with significant growth potential driven by the increasing demand for advanced driving assistance systems [1][2]. - The market for intelligent driving chips and algorithms in China is projected to exceed 60 billion RMB by 2030, with a notable shift towards higher-level autonomous driving features [2][39]. - The company has successfully established a strong customer base and competitive advantages through its strategic focus on local service and cost-effectiveness, enabling it to capture a leading market share in the domestic passenger vehicle intelligent driving chip sector [3][13]. Summary by Sections Company Overview - The company has evolved into a leading player in the domestic ADAS chip market since its establishment in 2015, focusing exclusively on intelligent driving since 2019 [1][13]. - By the end of 2024, the company is expected to have shipped over 7 million units of its Journey series chips, achieving a market share of 33.97% in the domestic passenger vehicle intelligent driving chip market [1][13]. Market Potential - The penetration rate of L2 ADAS is nearing its ceiling, while the mid-to-high-level autonomous driving market presents new growth opportunities [2][39]. - The intelligent driving chip market in China is projected to reach approximately 20 billion RMB by 2025 and 50 billion RMB by 2030, with urban NOA chip market space estimated at 150 billion RMB in 2025 and 462 billion RMB in 2030 [2][39]. Competitive Landscape - The company is expected to become a leading third-party high-level intelligent driving solution provider, leveraging its strong strategic and algorithmic capabilities [3][39]. - The competitive landscape is shifting as traditional manufacturers show varying levels of willingness to develop in-house solutions, creating opportunities for the company to expand its market presence [3][39]. Financial Projections - Revenue projections for the company are estimated at 35.2 billion RMB in 2025, 54.8 billion RMB in 2026, and 80.2 billion RMB in 2027, with growth rates of 47.6%, 55.8%, and 46.3% respectively [4][9]. - The target market capitalization for the company is set at 105.5 billion RMB based on a 30x price-to-sales ratio for 2025 [4][8].

Investment Rating - The report maintains a positive outlook on the humanoid robot industry, emphasizing the importance of software development for commercialization [3][4]. Core Insights - The report identifies that the hardware maturity of humanoid robots is currently higher than that of software, with software being the key to commercialization. It highlights the need for advancements in algorithms, data, and control systems to drive the industry forward [3][5][6]. Summary by Sections 1. Algorithms: The Core of Embodied Intelligence - The algorithm framework is divided into two levels: the upper "brain" focuses on task-level planning and decision-making, while the lower "cerebellum" handles real-time motion planning and joint control [3][11][18]. - The report discusses the evolution of control algorithms, noting a shift from traditional methods to modern approaches like reinforcement learning (RL) and imitation learning (IL) [3][19][29]. - The VLA (Vision-Language-Action) model is highlighted as a significant advancement in upper-level control, enabling robots to understand and execute tasks through natural language processing [3][36][40]. 2. Data: The Foundation of Algorithm Learning - Data quality and diversity are crucial for algorithm performance, with sources categorized into real data, synthetic data, and web data. Real data is the most accurate but least abundant [3][74][76]. - The report emphasizes the importance of remote operation and motion capture technologies for collecting high-quality real data [3][79]. 3. Control Systems: The Foundation of Embodied Intelligence - The control system is described as the "brain" of humanoid robots, consisting of hardware (SoC chips, CPUs, GPUs, NPUs) and software components [3][3][3]. - The report notes that the industry lacks a unified consensus on the structure of the "brain" and "cerebellum" in humanoid robots, which are essential for executing complex algorithms and tasks [3][3][3]. 4. Investment Opportunities - The report identifies several key companies in the humanoid robot industry worth monitoring, including: - Controller segment: Tianzhun Technology, Zhiwei Intelligent, Desay SV [4][4]. - Motion control technology: Huichuan Technology, Xinjie Electric, Leisai Intelligent, Gokong Technology, Tosida [4][4]. - Chip manufacturers: Rockchip, Horizon Robotics [4][4]. - Data collection equipment: Lingyun Optical, Aofei Entertainment [4][4].

Investment Rating - The investment rating for Horizon Robotics (9660.HK) is "Buy" [3]. Core Insights - Horizon Robotics is positioned as a leader in the new generation of automotive intelligent chips and a world-class AI algorithm company, focusing on software-defined principles and exploring new boundaries in intelligent driving [5][14]. - The market for intelligent driving is expected to grow significantly, with the AD (Autonomous Driving) market projected to have a compound annual growth rate (CAGR) of 144.2% from 2019 to 2023, and the overall AD+ADAS market expected to grow at a CAGR of 57.8% during the same period [5][12][37]. - Horizon Robotics has achieved a market share of 28.65% in the full-stage intelligent driving computing solutions market as of the first half of 2024, and is expected to further increase its share in the OEM ADAS and AD markets [5][57]. Summary by Sections Company Overview - Horizon Robotics focuses on intelligent driving chip platforms, full-scene intelligent driving solutions, and supporting toolchains, establishing itself as a comprehensive supplier in the industry [5][14]. - The company has launched several intelligent driving chips, including J2, J3, J5, and J6, and has developed a self-adaptive BPU computing unit that maximizes computational efficiency [14]. Market Growth - The AD+ADAS market is projected to reach a scale of 407 billion yuan by 2030, with a CAGR of 48.8% from 2025 to 2030 [12][37]. - The domestic OEM market share has increased from 19.8% in 2019 to 39.8% in 2023, with expectations to exceed 60% by 2029 [61]. Competitive Position - Horizon Robotics has established a strong customer base, providing stable and reliable intelligent driving solutions to 27 OEMs, covering 42 brands [57][69]. - The company is recognized for its competitive advantages in cost-effectiveness, software capabilities, and customization, which have solidified its position in the industry [11][21]. Financial Projections - Revenue projections for Horizon Robotics are estimated at 36.10 billion yuan in 2025, 56.97 billion yuan in 2026, and 80.53 billion yuan in 2027, with corresponding growth rates of 51%, 58%, and 41% respectively [6]. - The net profit is expected to turn positive by 2027, with a forecasted profit of 668 million yuan [6].

Core Viewpoint - Horizon Robotics (地平线机器人) is recognized as a leading company in domestic intelligent driving solutions, with rapid growth in product shipments and authorized solution business revenue, indicating a strong business model and potential for further growth in J6 and HSD solutions [1] Group 1: Financial Performance - In 2024, the company achieved a revenue of 2.384 billion yuan, representing a year-on-year increase of 53.62%, and a net profit of 2.347 billion yuan, up 134.82% year-on-year [1] - The company's automotive solutions revenue reached 2.312 billion yuan in 2024, accounting for 97% of total revenue, with a significant increase in gross margin to 77.25% from 70.53% in 2023 [2] - The company reported a net profit of 2.347 billion yuan in 2024, with adjusted operating losses narrowing to 1.495 billion yuan, a reduction of 11.4% compared to 2023 [3] Group 2: Operational Efficiency - The company's sales expense ratio decreased from 21.09% in 2023 to 17.20% in 2024, continuing a three-year trend of rapid decline, while the management expense ratio also fell from 28.57% to 26.75% [3] - Research and development investment reached 3.156 billion yuan, accounting for 132% of revenue, with a decrease in R&D expense ratio from 152% in 2023 [3] Group 3: Market Position and Product Development - As of March 2025, Horizon Robotics' solutions have been adopted by 27 OEMs (42 brands), with over 100 new models added in 2024, and a cumulative delivery of over 7.7 million units, maintaining the top position in China's intelligent driving solution delivery scale [4] - The company ranks second among independent third-party high-level intelligent driving solution providers in China, with positive market feedback for the newly launched Journey 6 solution, expected to exceed 10 million units in cumulative shipments by 2025 [4] - The new generation all-scenario high-level autonomous driving solution, Horizon SuperDrive (HSD), is set to begin mass production in Q3 2025, aiming to enhance market share [4]

Core Insights - The top three companies with the highest short positions are WuXi AppTec (02359), Vanke Enterprises (02202), and Ganfeng Lithium (01772) with short ratios of 16.40%, 14.71%, and 13.17% respectively [1][2] - The company with the largest increase in short positions is Vanke Enterprises (02202), which saw an increase of 1.37% from the previous report [1][2] - Ganfeng Lithium (01772) experienced the largest decrease in short positions, with a reduction of 0.88% [1][3] Short Position Summary - **Top 3 Companies by Short Ratio** - WuXi AppTec (02359): 6,349.45 million shares, 16.40% [2] - Vanke Enterprises (02202): 325 million shares, 14.71% [2] - Ganfeng Lithium (01772): 5,313.62 million shares, 13.17% [2] - **Companies with Largest Increase in Short Positions** - Vanke Enterprises (02202): Increased from 13.34% to 14.71% [2] - COSCO Shipping Holdings (01919): Increased from 12.27% to 13.14% [2] - Yao Cai Securities (01428): Increased from 1.28% to 2.09% [2] - **Companies with Largest Decrease in Short Positions** - Ganfeng Lithium (01772): Decreased from 14.05% to 13.17% [3] - Horizon Robotics-W (09660): Decreased from 1.87% to 1.02% [3] - Hisense Home Appliances (00921): Decreased from 10.94% to 10.14% [3]

Core Viewpoint - Daiwa Research expects Horizon Robotics (09660.HK) to deliver over 4 million Advanced Driver Assistance System (ADAS) chips this year, up from 2.9 million last year, indicating strong growth potential in the smart automotive sector [1] Group 1: Company Performance - Horizon Robotics is projected to ship approximately 1.9 million units of Horizon Mono, 1.9 million units of Horizon Pilot, and 40,000 units of Horizon SuperDrive [1] - The increase in shipments and pricing of Horizon Pilot is anticipated to be the main driver of revenue growth this year [1] Group 2: Financial Outlook - Daiwa has upgraded its target price for Horizon Robotics from HKD 6.5 to HKD 9.6, reflecting confidence in the company's growth trajectory [1] - The net profit forecast for 2026-27 has been revised down by 28% to 57%, due to an expected decrease in the revenue share from licensing and service businesses by 6-7 percentage points [1] Group 3: Industry Context - Despite a more cautious attitude towards ADAS in the domestic automotive industry following an incident involving Xiaomi's SU7, the trend towards smart vehicles is not expected to slow down [1]

Group 1 - Hong Kong chip stocks experienced significant fluctuations, with Horizon Robotics (09660.HK) dropping over 4.4% [1] - Semiconductor Manufacturing International Corporation (00981.HK) fell nearly 3% [1] - Other companies such as Baker Hughes (02149.HK) and Jingmen Semiconductor (02878.HK) also saw declines of over 1% [1]

Core Viewpoint - The "Dongwu Securities 2025 Economic and Investment Summit" successfully gathered over a hundred top listed companies with a total market value of nearly 10 trillion yuan, focusing on macroeconomic trends, technological innovation, and sustainable development [2][3][15]. Group 1: Event Overview - The summit took place on May 7 in Shanghai, featuring 500 representatives from listed companies and investment institutions discussing key market topics [2][3]. - Notable companies such as BYD, SMIC, and Ctrip were recognized as the best listed companies, collectively valued at approximately 10 trillion yuan [2][15]. Group 2: Key Themes and Discussions - The summit's theme was "Pursuing Dreams on the Yangtze River, Striving for Long-term Success," emphasizing the exploration of economic and investment opportunities in the new macro environment [3]. - Keynote speeches highlighted the transition of China's economic growth from factor and investment-driven to innovation-driven, with a focus on governance upgrades and sustainable practices [11]. Group 3: Awards and Recognitions - The "Best Listed Company" and "Best Hong Kong Company" awards were presented, aimed at promoting high-quality development and recognizing companies excelling in ESG practices and brand strength [15][16]. - The evaluation for the "Best Listed Company" included all A-share companies listed before December 31, 2022, assessing their information disclosure quality and sustainability practices [15]. Group 4: Future Initiatives - The "Best Secretary of the Board" award will be launched in May 2025, with discussions on governance and market practices already taking place in various cities [17][19]. - The summit also served as a platform for enhancing communication between listed companies and financial institutions, fostering collaboration and knowledge sharing [18].

Investment Rating - The report maintains a "Buy" rating for Horizon Robotics (9660.HK) with a current stock price of 7.5 HKD [1]. Core Views - The company is focusing on high-end products and a broad customer base, recently launching the L2 urban driving assistance system, Horizon HSD, and announcing collaborations with multiple automotive manufacturers and Tier 1 suppliers [3][5]. - The company is positioned to benefit from the high barriers to entry in the smart driving chip sector, leveraging its extensive mass production experience and strong engineering capabilities [6]. Financial Summary - **Revenue Forecast**: Projected revenues are expected to grow from 1,552 million in 2023 to 10,004 million by 2027, with a year-over-year growth rate peaking at 82.7% in 2027 [4]. - **Net Profit**: The company is forecasted to have a net profit of -6,739 million in 2023, improving to 453 million by 2027 [4]. - **Gross Margin**: The gross margin is expected to decline from 70.5% in 2023 to 54.8% in 2027 [4]. - **Earnings Per Share (EPS)**: EPS is projected to improve from -0.51 in 2023 to 0.03 in 2027 [4]. Market Position and Strategy - The company is advancing its urban driving assistance technology through a combination of hardware and software, with the HSD system set to begin mass production in Q3 2025 [5]. - Horizon Robotics has established partnerships with 20 automotive brands and is expanding its global market presence through collaborations with international Tier 1 suppliers like Bosch and Denso [6]. Financial Ratios - **Revenue Growth Rate**: Expected to be 53.6% in 2024 and 82.7% in 2027 [9]. - **Net Profit Margin**: Projected to improve from -434.3% in 2023 to 4.5% in 2027 [4]. - **Return on Equity (ROE)**: Expected to recover from -22.8% in 2025 to 5.2% in 2027 [9].