Core Viewpoint - In 2024, Horizon Robotics-W (09660) is projected to achieve total revenue of 2.38 billion yuan, representing a year-on-year growth of 53.6%, with a net profit of 2.35 billion yuan, and a narrowed adjusted operating loss of 1.495 billion yuan compared to 1.687 billion yuan in 2023 [1][2] Revenue and Profit Analysis - The company is expected to generate total revenue of 2.38 billion yuan in 2024, marking a 53.6% increase year-on-year [2] - The net profit for 2024 is projected at 2.35 billion yuan, a significant recovery from a net loss of 6.739 billion yuan in 2023, primarily due to a fair value change gain of 4.677 billion yuan from preferred shares and other financial liabilities [2] - Adjusted operating loss is forecasted at 1.495 billion yuan, an improvement from 1.687 billion yuan in 2023 [1][3] Business Segment Performance - Revenue from automotive solutions is expected to reach 2.312 billion yuan in 2024, reflecting a year-on-year increase of 57.2% [2] - Revenue from automotive product solutions is projected at 664 million yuan, up 31.2% year-on-year, driven by increased delivery volumes [2] - Revenue from licensing and service business is anticipated to be 1.658 billion yuan, a 70.9% increase, attributed to high demand for algorithms, software development tools, and technical services [2] Cost Efficiency and Profitability - The company's gross margin is expected to be 77.25% in 2024, an increase of 6.7 percentage points year-on-year, driven by a higher proportion of high-margin licensing and service revenue [3] - Gross margins for different business segments are projected as follows: automotive product solutions at 46%, licensing and service at 92%, and non-automotive solutions at 23%, with respective year-on-year increases of 2, 3, and 10 percentage points [3] - The company's operating expenses ratio is forecasted to be 176.36%, a decrease of 25.81 percentage points year-on-year [3] Delivery and Model Designation - The delivery volume for automotive product solutions is expected to reach approximately 2.9 million units in 2024, with a cumulative delivery volume of around 7.7 million units [4] - The company has secured over 100 model designations in 2024, increasing the total number of model designations to over 310 by December 31, 2024 [4] Product Development and Market Expansion - The company will launch the Journey 6 series processing hardware in 2024, aimed at enhancing advanced driver assistance and high-level autonomous driving solutions, with production starting in February 2025 [5] - The Journey 6 series has already been adopted for mass production by BYD's Tian Shen Eye C and will be implemented across more than 20 automotive manufacturers and brands [5] - From 2025 onwards, over 100 models equipped with the Journey 6 series are expected to be launched, covering a wide range of market segments from domestic to international brands, and from economy to luxury vehicles [5]

Core Viewpoint - The company is expected to achieve a total revenue of $4.28 billion in 2024, reflecting a year-on-year increase of 1.6%, with significant growth in EBITDA and net profit, indicating a positive financial outlook for the year [3]. Group 1: Financial Performance - Total revenue for 2024 is projected to be $4.28 billion, up 1.6% year-on-year, aligning with previous forecasts [3]. - Gross margin is expected to increase by 1.7 percentage points to 10.5%, while EBITDA is anticipated to rise by 22.5% to $420 million [3]. - Net profit is forecasted to grow by 68.0% to $62 million, with a significant increase in net profit in the second half of 2024, projected to be $46 million, reflecting a year-on-year increase of 1577.3% [3]. Group 2: Regional Performance - The Asia-Pacific region is expected to see a revenue increase of 10.1% to $1.34 billion, contributing to 31% of total revenue, while North America’s revenue share is projected to decrease by 3 percentage points to 51% [4]. - EBITDA margin in the Asia-Pacific region is expected to rise by 0.6 percentage points to 17.2%, while North America’s EBITDA margin is projected to increase by 2.3 percentage points to 8.1% [4]. - The company anticipates that the EBITDA margin will increase by 1.7 percentage points to 9.9% in 2024, driven by growth in the Asia-Pacific region and recovery in North America [4]. Group 3: Order Growth and Product Development - The company secured new orders totaling $6 billion in 2024, with significant breakthroughs in steer-by-wire, DP-EPS, and rear-wheel steering businesses [5]. - Notable new orders include projects from leading North American electric vehicle manufacturers and major Chinese automakers, indicating a broadening customer base [5]. - The company is expected to leverage its technological advantages and modular capabilities to expand into new business areas, particularly in advanced driver-assistance systems [5].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4] Core Views - The company is expanding its product matrix with two new electric SUVs, the Li Auto i8 and i6, set to launch in July 2025 and the second half of 2025, respectively [3] - The company aims to enhance its high-level autonomous driving capabilities alongside the new vehicle launches [3] - The company plans to increase its supercharging station network to 4,000 by the end of 2025, with a target of 2,500 stations available at the launch of the Li Auto i8 [3] Financial Forecasts - The company’s total revenue for 2023 is projected at 123.85 billion yuan, with a year-on-year growth of 173.48% [1] - Revenue forecasts for 2024, 2025, 2026, and 2027 are 144.46 billion yuan, 172.86 billion yuan, 236.56 billion yuan, and 275.05 billion yuan, respectively, with year-on-year growth rates of 16.64%, 19.66%, 36.85%, and 16.27% [1][4] - The net profit attributable to the parent company for 2023 is expected to be 11.70 billion yuan, with a significant year-on-year increase of 681.65% [1] - The net profit forecasts for 2024, 2025, 2026, and 2027 are 8.03 billion yuan, 9.38 billion yuan, 14.48 billion yuan, and 17.51 billion yuan, respectively, with year-on-year growth rates of -31.37%, 16.79%, 54.41%, and 20.86% [1][4] - The earnings per share (EPS) for 2023 is projected at 5.52 yuan, with forecasts for 2024, 2025, 2026, and 2027 at 3.79 yuan, 4.42 yuan, 6.83 yuan, and 8.25 yuan, respectively [1][4] - The price-to-earnings (P/E) ratios for 2024, 2025, 2026, and 2027 are expected to be 27.85, 23.85, 15.44, and 12.78, respectively [1][4]

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company is expanding its product matrix with two new electric SUVs set to launch in 2025, enhancing its advanced driving capabilities [3] - The company aims to establish 2,500 supercharging stations by the time the new model i8 is released, with plans to increase this to 4,000 by the end of 2025 [3] Financial Forecasts - The company’s total revenue for 2023 is projected at 123.85 billion RMB, with a year-on-year growth of 173.48% [4] - Revenue forecasts for 2024, 2025, 2026, and 2027 are 144.46 billion RMB, 172.86 billion RMB, 236.56 billion RMB, and 275.05 billion RMB respectively, with year-on-year growth rates of 16.64%, 19.66%, 36.85%, and 16.27% [4] - The net profit attributable to the parent company for 2023 is expected to be 11.70 billion RMB, with a staggering year-on-year increase of 681.65% [4] - The net profit forecasts for 2025, 2026, and 2027 are 9.38 billion RMB, 14.49 billion RMB, and 17.51 billion RMB, reflecting year-on-year growth rates of 16.79%, 54.41%, and 20.86% respectively [4] - The report projects EPS for 2025, 2026, and 2027 to be 4.42 RMB, 6.83 RMB, and 8.25 RMB, with corresponding P/E ratios of 23.85, 15.44, and 12.78 [4]

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Insights - The company is expanding its product matrix with two new electric SUVs, the Li Auto i8 and i6, set to launch in July 2025 and the second half of 2025 respectively [3] - The company aims to enhance its high-level autonomous driving capabilities alongside the new vehicle launches [3] - The company plans to increase its supercharging station network to 4,000 by the end of 2025, starting with 2,500 stations at the launch of the Li Auto i8 [3] Financial Forecasts - The company’s total revenue for 2023 is projected at 123.85 billion RMB, with a year-on-year growth of 173.48% [4] - Revenue forecasts for 2024, 2025, 2026, and 2027 are 144.46 billion RMB, 172.86 billion RMB, 236.56 billion RMB, and 275.05 billion RMB respectively, with growth rates of 16.64%, 19.66%, 36.85%, and 16.27% [4] - The net profit attributable to the parent company for 2023 is expected to be 11.70 billion RMB, with a staggering year-on-year increase of 681.65% [4] - The net profit forecasts for 2025, 2026, and 2027 are 9.38 billion RMB, 14.49 billion RMB, and 17.51 billion RMB, reflecting growth rates of 16.79%, 54.41%, and 20.86% respectively [4] - The earnings per share (EPS) for 2023 is projected at 5.52 RMB, with forecasts of 3.79 RMB, 4.42 RMB, 6.83 RMB, and 8.25 RMB for the following years [4]

Summary of Leap Motor Conference Call Company Overview - **Company**: Leap Motor - **Industry**: New Energy Vehicles (NEVs) Key Points and Arguments Market Trends and Projections - Leap Motor predicts that by 2027-2028, the penetration rate of new energy vehicles in China will reach 80%-90%, driven by the economic advantages of electric vehicles, which have operating costs only one-fourth that of fuel vehicles, and even lower in some regions [2][5] - The full electrification of the Chinese market will weaken the market share of traditional fuel vehicle manufacturers (e.g., BBA), with Chinese new energy vehicle companies further eroding their advantages globally [2][6] - The trend of electrification is expected to expand globally, with electric vehicles gradually replacing traditional fuel vehicles due to their economic and operational advantages [5] Technological Advancements - Smart technology is identified as a key factor in the second phase of electric vehicle development, with expectations for high-level intelligent driving on elevated highways by 2025 and gradual urban adoption [2][7] - Leap Motor ranks 11th globally in electric vehicle shipments, with expectations for increased sales and ranking improvements in 2024-2025, supported by advantages in core components like batteries and chips [2][8] Sales and Financial Performance - Leap Motor's sales target for 2025 is set at 500,000 vehicles, based on an average monthly sales forecast of 30,000 to 40,000 vehicles in 2024 [3][13] - In 2024, Leap Motor achieved significant results, doubling sales and achieving positive gross margins in Q4, with cash flow exceeding 10 billion yuan [4] Competitive Landscape - The Chinese new energy vehicle market is expected to undergo structural adjustments over the next three years, with traditional fuel vehicle companies losing significant market share in China [5][6] - Leap Motor emphasizes core technology research and product planning to enhance competitiveness, with plans to upgrade urban driving functions by Q3 and Q4 of 2025 [10][12] Product Development and Strategy - Leap Motor plans to launch three new models in the B series and fully update the C series to a 3.5 architecture platform, with an average range increase of 50 kilometers [3][13] - The company aims to maintain a competitive edge through detailed strategic planning, including a five-year strategic plan and annual business plans [17] International Expansion - Leap Motor established a network of over 300 dealers and achieved 3,700 units in exports by September 2024, with a goal of over 50,000 units by the end of 2025 [19][20] - The company is focusing on local manufacturing to reduce tariff costs and enhance competitiveness [20] Financial Goals and Profitability - For 2025, Leap Motor aims for a gross margin of 10%-11% and plans to control expenses while targeting sales of 500,000 vehicles, with a conservative estimate of achieving profitability [23][28] - The company anticipates that achieving sales of 1 million vehicles could lead to significant profitability, with potential earnings of 5 billion to 10 billion yuan [28] Strategic Partnerships and Collaborations - Leap Motor is progressing in strategic partnerships, including agreements with multiple companies for core components, with expectations for significant developments by 2026 [32][33] Chip Development and Market Dynamics - The chip market is highly competitive, with major players like Nvidia and Qualcomm dominating, while Leap Motor is investing in self-developed chips to enhance its technological capabilities [34][35] - The company is exploring the possibility of integrating its self-developed chips and algorithms into a model similar to Huawei's approach [33] Future Outlook - Leap Motor is optimistic about its growth trajectory, aiming to enhance brand recognition and consumer reputation while expanding its market presence both domestically and internationally [32][38]