Investment Rating - The report assigns a "Buy" rating for Horizon Robotics (9660.HK) [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 intelligent driving market is expected to grow significantly, with the AD market projected to take over from ADAS as the main growth driver, achieving a market size of 407 billion yuan by 2030 [12][37] - The company has a leading market share in the intelligent driving computing solutions market, with a 28.65% share in the first half of 2024, and is expected to further increase its share in the OEM ADAS and AD markets [11][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 in China has seen a compound annual growth rate (CAGR) of 57.8% from 2019 to 2023, with the AD market growing at a CAGR of 144.2% [12][37] - By 2030, the AD market is expected to reach a size of 407 billion yuan, with a CAGR of 48.8% from 2025 to 2030 [12][37] Competitive Position - Horizon Robotics has a steadily increasing market share, with 41% in the ADAS market and over 30% in the AD market among Chinese OEMs by the end of 2024 [12][57] - The company has established partnerships with major OEMs, including BYD, Geely, and Chery, to support their intelligent driving strategies [61][69] Financial Projections - Revenue projections for Horizon Robotics are expected to reach 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 company anticipates a return to profitability by 2027, with a projected net profit of 668 million yuan [6] Customer Base and Partnerships - Horizon Robotics has a broad customer base, covering major domestic automakers and new energy vehicle manufacturers, which positions it well for future growth as the demand for intelligent driving solutions increases [69]

Core Viewpoint - The report from Shenwan Hongyuan indicates that SUTENG JUCHUANG (02498) is expected to experience significant revenue growth from 2025 to 2027, with projected revenues of 2.62 billion, 3.66 billion, and 4.70 billion yuan respectively, while the net profit is forecasted to be -238 million, 106 million, and 320 million yuan respectively. The company is currently not profitable, leading to a PS valuation method being employed for its assessment [1]. Group 1 - The company is rapidly leading the global LiDAR industry, focusing on providing quality solutions in the field of embodied intelligence. The sales of LiDAR products have seen a non-linear high growth, confirming the explosive demand from automotive companies for LiDAR configurations under the trend of increasing intelligence [2]. - In 2024, the total sales of LiDAR products are expected to reach approximately 544,000 units, representing a significant year-on-year increase of 109.6%. The sales of LiDAR products for ADAS applications are projected to be around 520,000 units. The company is expected to maintain a leading market share of 26% in 2024, ranking first globally [2]. - The product matrix of the company is comprehensive, covering various technical paths including mechanical, semi-solid, and solid-state LiDAR, with performance ranging from short to ultra-long distances and low to high beam configurations. This allows the company to meet a wide range of demands across different price segments [2]. Group 2 - The first driving force is the end-to-end vehicle integration and equalization of intelligent driving. The previous debate over LiDAR configurations in vehicles has been influenced by Tesla's insistence on a pure vision and neural network approach. With advancements in computing power and the maturity of end-to-end algorithms, the integration of multi-sensor fusion with pure vision is becoming more feasible [3]. - The LiDAR industry is expected to enter the "thousand-yuan machine era" by 2025, with prices dropping to the range of 25,000 to 30,000 yuan. This price reduction is anticipated to significantly increase the configuration rate of LiDAR as an "invisible safety airbag" for autonomous driving [3]. - The global market for LiDAR in passenger vehicles is estimated to reach approximately 7 billion yuan by 2025, with the Chinese market accounting for about 6.3 billion yuan. The overseas market is expected to gradually open up and grow rapidly, representing an important direction for LiDAR's incremental growth [3]. Group 3 - The second driving force is the strategic positioning of the robotics technology platform. The company focuses on the development of incremental components such as robotic vision and dexterous hands, launching solutions based on hand-eye coordination for upper body operations and lower body mobility [4]. - The year 2025 is viewed as the year of mass production for humanoid robots, with companies like Tesla aiming to produce 5,000 units of Optimus this year, and domestic companies like Zhiyuan Robotics achieving deliveries in the thousands [4]. - In the niche market of robotic lawn mowers, the demand for LiDAR products is projected to exceed 400,000 units by 2025 and is expected to surpass 900,000 units by 2028 [4].