Core Viewpoint - ZF Group and Horizon have announced a collaboration to develop an SAE Level 3 intelligent driving system for the Chinese market, expected to be mass-produced by 2026 [1][2]. Group 1: Collaboration Details - ZF will provide its ProAI platform and system-level architecture design, focusing on hardware platform, vehicle integration, and safety validation, while Horizon will supply the Journey 6P chip with a computing power exceeding 1,000 TOPS and a complete software algorithm stack [1]. - The collaboration aims to integrate traditional chassis control advantages with intelligent decision-making, creating a closed-loop architecture that enhances the execution consistency and safety redundancy of the intelligent driving system [1]. Group 2: Performance and Market Position - The Journey 6P chip has been validated against international Tier-1 integration standards, indicating its capabilities in computing power, power management, and toolchain maturity [2]. - Horizon is transitioning from a chip supplier to a system solution provider, which is expected to enhance its average selling price (ASP) and profitability as the high-end product line's share increases [2]. Group 3: Market Expansion and Revenue Projections - With ZF's global network, Horizon is positioned to expand its overseas customer base, potentially accelerating its transition from domestic validation to global mass production [2]. - The company anticipates that overseas revenue will account for approximately 10% by 2027, with projected revenues of 34.77 billion, 59.07 billion, and 88.90 billion RMB for 2025-2027, reflecting year-on-year growth rates of 67.5%, 61.8%, and 57.9% respectively [3].

Group 1 - Haitong International has set a target price of HKD 12.5 for Horizon Robotics (09660), reflecting a 28x price-to-sales ratio for 2026, up from a previous target of HKD 12.3 at 26x [1] - Horizon Robotics has partnered with ZF Group to develop an SAE Level 3 intelligent driving system for the Chinese market, with production expected to start in 2026 [1][2] - The collaboration combines ZF's expertise in chassis and execution systems with Horizon's Journey6P chip, which has a computing power exceeding 1,000 TOPS, enhancing the system's execution consistency and safety redundancy [2] Group 2 - The partnership positions Horizon Robotics as the first Chinese intelligent driving chip manufacturer to secure core projects with both Bosch and ZF, increasing the commercial viability of its L3 products and expanding its global market reach [2] - Revenue projections for Horizon Robotics are estimated at RMB 3.477 billion, RMB 5.907 billion, and RMB 8.890 billion for the fiscal years 2025 to 2027, representing year-on-year growth rates of 67.5%, 61.8%, and 57.9% respectively [2]

Group 1 - Haitong International has set a target price of HKD 12.5 for Horizon Robotics (09660) based on a 2026 price-to-sales ratio of 28 times, reflecting a 2% increase from the previous target price of HKD 12.3 [1] - Horizon Robotics has partnered with ZF Group to develop an SAE Level 3 intelligent driving system for the Chinese market, with production expected to start in 2026 [1][2] - The collaboration combines ZF's expertise in chassis and execution systems with Horizon's advanced chip technology, enhancing the consistency and safety of the intelligent driving system [2] Group 2 - Horizon Robotics is the first Chinese intelligent driving chip manufacturer to secure core projects with both Bosch and ZF, which strengthens its commercial viability for L3 products and expands its global market opportunities [2] - Revenue projections for Horizon Robotics are estimated at RMB 3.477 billion, RMB 5.907 billion, and RMB 8.890 billion for the fiscal years 2025 to 2027, representing year-on-year growth rates of 67.5%, 61.8%, and 57.9% respectively [2]

Market Overview - The Hong Kong stock market experienced a significant decline, with the Hang Seng Tech Index dropping by 3% at one point and closing down 1.76%. The Hang Seng Index and the National Enterprises Index fell by 0.79% and 0.92%, respectively, indicating a very gloomy market sentiment [1][3]. Technology Sector - Major technology stocks dragged down market sentiment, with Xiaomi and JD.com both falling nearly 3%, Alibaba down 2.57%, Meituan down 2.35%, and NetEase down 1.54% [3][5]. - Specific declines included Sunny Optical Technology down 4.59%, Li Auto down 3.89%, and SenseTime down 3.42% [6][8]. Cryptocurrency Market - The cryptocurrency market experienced a flash crash, with over $1.2 billion in positions liquidated within 24 hours, leading to a collective decline in cryptocurrency-related stocks [6][7]. Precious Metals - Gold prices fell below $3980 per ounce, with a daily drop of 0.53%. Analysts expect gold to remain volatile and predict a consolidation phase until new macroeconomic drivers emerge [11]. Banking Sector - The banking sector showed resilience, with China Everbright Bank rising by over 3%, and other banks like Minsheng Bank and China Merchants Bank also seeing gains of over 2% [18]. Entertainment Sector - The film and entertainment sector remained active, with the total box office surpassing 40 billion yuan in the first three quarters, leading to increased activity in entertainment stocks [3]. Shipping Sector - Shipping stocks generally declined, with China Merchants Energy down 5.61% and Pacific Basin Shipping down 4.07% [11][12]. Biopharmaceutical Sector - The biopharmaceutical sector faced downward pressure, with notable declines including 9.12% for WuXi Biologics and 6% for CanSino Biologics [13]. Real Estate Sector - Real estate stocks broadly declined, with China Overseas Land & Investment and Longfor Group both falling over 2% [14][15]. Semiconductor Sector - The semiconductor sector also showed weakness, with Brainhole Technology down 8.26% and several other companies experiencing declines of over 3% [16]. Future Outlook - Looking ahead, analysts suggest that the capital market is undergoing significant changes, with a low-interest-rate environment enhancing the attractiveness of equity assets. This indicates a potential positive development cycle for the market [22].

Investment Rating - The report maintains an "Outperform" rating for Horizon Robotics with a target price of HK$12.50, up from a previous target of HK$12.30 [2][16]. Core Insights - The partnership with ZF Group validates the system-level competitiveness of Horizon Robotics' J6P chip, enhancing its commercial viability and expanding its market reach [3][5][16]. - The J6P platform has been recognized for meeting international Tier-1 integration standards, indicating its advanced performance and efficiency [4][14]. - Horizon Robotics is positioned to leverage ZF's extensive global network to accelerate overseas customer acquisition, with expectations of overseas revenue reaching approximately 10% by FY27E [5][15][16]. Financial Summary - Revenue projections for Horizon Robotics are estimated at RMB3.48 billion, RMB5.91 billion, and RMB8.89 billion for FY25, FY26, and FY27 respectively, reflecting year-on-year growth rates of 67.5%, 61.8%, and 57.9% [2][16]. - The gross profit margin is expected to decline from 77.3% in FY24 to 57.2% by FY27, indicating a shift in product mix and pricing strategy [11]. - The company anticipates a net profit of RMB -7.05 billion in FY25, with a gradual improvement expected in subsequent years [10][11].

Core Insights - On October 27, 2025, SMIC (00981), Alibaba-W (09988), and Xiaomi Group-W (01810) were the top three stocks by trading volume in the Southbound Stock Connect, with trading amounts of 6.595 billion, 5.869 billion, and 4.542 billion respectively [1] - In the Southbound Stock Connect for the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), SMIC (00981), and Xiaomi Group-W (01810) also ranked as the top three, with trading amounts of 4.648 billion, 4.008 billion, and 3.210 billion respectively [1] Southbound Stock Connect (Hong Kong) - The top three active stocks by trading amount were: - SMIC (00981): 6.595 billion, net buy of -1.9798 million - Alibaba-W (09988): 5.869 billion, net buy of -1.204 billion - Xiaomi Group-W (01810): 4.542 billion, net buy of +457 million [2] - Other notable stocks included Tencent Holdings (00700) with 3.630 billion and a net buy of +1.256 billion, and Pop Mart (09992) with 1.828 billion and a net buy of +492 million [2] Southbound Stock Connect (Shenzhen) - The top three active stocks by trading amount were: - Alibaba-W (09988): 4.648 billion, net buy of -780 million - SMIC (00981): 4.008 billion, net buy of +1.145 billion - Xiaomi Group-W (01810): 3.210 billion, net buy of -575 million [2] - Other notable stocks included Huahong Semiconductor (01347) with 2.402 billion and a net buy of +1.162 billion, and Tencent Holdings (00700) with 2.054 billion and a net buy of -226 million [2]

Core Viewpoint - Goldman Sachs maintains a "Buy" rating for Horizon Robotics-W (09660), raising the target price from HKD 14.11 to HKD 15.3, which corresponds to an enterprise value to EBITDA multiple of 28 times [1] Group 1: Product Development and Applications - Horizon Robotics' Journey 6 platform is seeing increased applications in new vehicle models, including J6P and Super Drive High-Level Intelligent Driving (HSD) for Chery Automobile (09973) Exeed ET5, J6E for SAIC MG4530, and J6M for Changan Automobile (000625.SZ) Q07 and Geely Automobile (00175) Galaxy A7, enabling high-speed and urban navigation assistance driving (NOA) [1] - The J6P and HSD have already entered mass production in Chery Exeed ET5, with deliveries starting next month [1] Group 2: Market Outlook and Product Strategy - The company offers a comprehensive system-on-chip (SoC) platform solution ranging from 5 TOPS to 560 TOPS, covering various price segments and providing integrated hardware and software solutions based on customer needs [1] - There is optimism regarding the company's increasing shipment volumes and the transition of its product mix towards high-end SoCs [1]

Core Viewpoint - Goldman Sachs maintains a "Buy" rating for Horizon Robotics-W (09660) and raises the target price from HKD 14.11 to HKD 15.3, which corresponds to an enterprise value to EBITDA ratio of 28 times [1] Group 1: Product Development and Applications - Horizon Robotics' Journey 6 platform is seeing increased applications in new vehicle models, including J6P and Super Drive High-Level Intelligent Driving (HSD) for Chery Automobile (09973) Exeed ET5, J6E for SAIC MG4530, and J6M for Changan Automobile (000625.SZ) Qiyuan Q07 and Geely Automobile (00175) Galaxy A7, enabling high-speed and urban navigation assistance [1] - The Journey 6 series, specifically J6P and HSD, has entered mass production for Chery Exeed ET5, with deliveries starting next month [1] Group 2: Technology and Market Outlook - The company offers a comprehensive system-on-chip (SoC) platform solution ranging from 5 TOPS to 560 TOPS, covering various price segments and providing integrated hardware and software solutions based on customer needs [1] - There is optimism regarding the company's increasing shipment volumes and the transition of its product mix towards high-end SoCs [1]

Group 1: Hong Kong Stocks - Yuewen Group (00772) rose over 4% as the company launched four major initiatives to develop its comic-drama ecosystem and actively promote IP commercialization [1] - ASMPT (00522) increased by over 7% after Morgan Stanley reported a recovery in mainstream semiconductor demand and continuous growth in the advanced packaging market, estimating that ASMPT's third-quarter order shipment ratio will remain above 1 [1] - Sands China (01928) rose over 1% as Citigroup expects its EBITDA recovery to continue in Q4 this year and into next year [1] - Jinli Permanent Magnet (06680) saw an increase of over 5% due to significant improvement in profitability and the strategic importance of rare earth resources [1] - AVIC Aircraft (02357) rose over 4% as its Zihuo future aircraft concept model was showcased at the Airshow, with business spanning the aviation industry chain [1] - Minmetals Resources (01208) increased by over 2% with a reported 11% year-on-year growth in total copper production in Q3, and institutions are optimistic about the performance of the Las Bambas mine [1] - Semiconductor stocks led the gains, with Huahong Semiconductor (01347) up over 10%, Shanghai Fudan (01385) up over 4%, SMIC (00981) up over 5%, and Jingmen Semiconductor (02878) up over 6%. Galaxy Securities noted that semiconductor equipment is a critical support sector in the tech war [1] - Horizon Robotics-W (09660) rose over 3% as it gained favor from domestic and international car manufacturers, with HSD already designated by multiple automakers [1][2] Group 2: US Stocks - Tesla (TSLA.US) rose 2.28% with Q3 2025 revenue at $28.095 billion, a 12% year-on-year increase, exceeding analyst expectations [3] - IBM (IBM.US) fell 0.87% as its Q3 hybrid cloud division revenue growth slowed and fell short of expectations [3] - Micron Technology (MU.US) increased by 4.15% as it officially samples the 192GB SOCAMM2 to customers, actively expanding low-power memory applications in AI data centers [3] - NIO (NIO.US) rose 0.73% with over 10,000 deliveries last week, including a record high of over 3,500 for the L90 model [3] - Hesai (HSAI.US) increased by 3.95% after announcing a strategic partnership with Guanghetong to jointly release a multi-modal perception and control solution based on lidar and dual-vision technology [3] - Baidu (BIDU.US) rose 2.95% as it partnered with Swiss Post's subsidiary PostBus to launch autonomous taxi road tests in Switzerland in December [3] - Futu Holdings (FUTU.US) increased by 3.65% after CICC raised its target price by 6% to $230, maintaining an "outperform" rating [3] - Alibaba (BABA.US) rose 3.64% as its Quark AI glasses are set to launch for pre-sale on the 24th [4] - Southwest Airlines (LUV.US) fell 6.25% despite a 1.1% year-on-year revenue increase to $6.95 billion in Q3, exceeding market expectations [4] - Intel (INTC.US) rose 3.36% with Q3 revenue at $13.65 billion, a 2.8% year-on-year increase [5]

Core Viewpoint - Horizon Robotics-W (09660) has seen a significant increase in stock price, attributed to the successful delivery of its Bosch mid-tier intelligent driving solution and securing orders from major Japanese OEMs for key models in the Chinese market [1] Group 1: Company Developments - Horizon Robotics has successfully delivered its Bosch mid-tier intelligent driving solution based on the Journey 6E/6M platform [1] - The company has secured orders for mainstream vehicle platforms from top Japanese OEMs, enhancing its presence in the Chinese market [1] - The launch of the Xingtu ET5, which features the world's first HSD system, is set for November, targeting the mainstream market with a price point of 150,000 yuan [1] Group 2: Market Trends - The HSD system has already been designated for over 10 models from multiple automakers, with a production target of 10 million units in the next 3-5 years [1] - Morgan Stanley highlights that the acceleration of global autonomous driving is initiating a positive adoption cycle, with Chinese manufacturers increasingly collaborating with local technology firms to enhance their autonomous driving strategies [1]