Financial Performance - In the first three quarters of 2025, BYD achieved total revenue of CNY 566.3 billion and a net profit of CNY 23.3 billion, with cumulative sales of 3.26 million new energy vehicles, marking an 18.6% year-on-year growth [1] - In Q3 2025, revenue reached CNY 194.98 billion, with a net profit of CNY 7.82 billion, reflecting a 23% quarter-on-quarter increase [1] - As of September 30, 2025, the company had cash and cash equivalents exceeding CNY 175.2 billion, supporting its rapid business growth [1] Global Expansion - BYD's new energy vehicles are now sold in over 110 countries across six continents, significantly increasing market penetration in Europe, Latin America, and Asia-Pacific [3] - In October 2025, overseas sales of passenger cars and pickups reached 83,524 units, a 155.5% year-on-year increase, with a total of 785,103 units sold from January to October [3] - The company has announced plans for new overseas factories in Thailand, Uzbekistan, Brazil, Hungary, Malaysia, and Cambodia, with more capacity expansions in the pipeline [3] Product Innovation - BYD continues to focus on technological innovation to address industry pain points, having introduced several groundbreaking technologies such as blade batteries and advanced hybrid systems [4][5] - The "Tiangshen Eye" intelligent driving system aims to enhance safety by reducing risks associated with driver fatigue, with a commitment to making high-level assisted driving features accessible across all models [6] Energy Storage Development - BYD's battery business, including energy storage, has seen significant growth, with a total installed capacity of over 230 GWh, a year-on-year increase of over 55% [7] - The company launched a new generation of energy storage products, "Haohan," designed for large-capacity storage applications, showcasing its capabilities at the SOLAR&STORAGE LIVE 2025 event in the UK [7]

Summary of Key Points Core Viewpoint - The Hong Kong stock market experienced significant net inflows from northbound trading, with a total net buy of HKD 35.78 billion on May 28, 2023, indicating strong investor interest in certain stocks while others faced net selling pressure [1]. Group 1: Stock Performance - Meituan-W (03690) received the highest net buy of HKD 10.74 billion, supported by positive analyst reports highlighting its solid local life service barriers and potential for long-term growth [5]. - China Mobile (00941) and Tencent (00700) also saw net buys of HKD 5.97 billion and HKD 0.28 billion, respectively, reflecting investor confidence in their business models [7]. - Conversely, Xiaomi Group-W (01810) faced the largest net sell of HKD 7.09 billion, attributed to mixed market sentiment despite strong revenue and profit forecasts [7]. - Alibaba-W (09988) and Hang Seng China Enterprises (02828) experienced net sells of HKD 3.77 billion and HKD 4.29 billion, respectively, indicating a shift in investor preference [7]. Group 2: Sector Insights - The oil sector showed mixed results, with CNOOC (00883) gaining a net buy of HKD 5.64 billion, while PetroChina (00857) faced a net sell of HKD 21.59 million, influenced by external market conditions and geopolitical factors [5]. - Horizon Robotics-W (09660) received a net buy of HKD 1.81 billion, benefiting from the growth in advanced driver-assistance systems driven by major automotive companies [6]. - Pop Mart (09992) saw a net buy of HKD 42.62 million, with forecasts indicating strong revenue and profit growth in the coming years due to new product launches and global market expansion [6]. - Semiconductor company SMIC (00981) faced a net sell of HKD 2.79 billion, with analysts noting production disruptions affecting revenue and margins [6].

Investment Rating - The report initiates coverage on Horizon Robotics with a "Buy" rating, setting a target price of HKD 9.28 based on a 31.1X PS for 2025 [1][7][5]. Core Views - Horizon Robotics is a leading supplier of advanced driver assistance systems (ADAS) and autonomous driving solutions, focusing on empowering vehicles and robots through intelligent solutions [14][23]. - The company is expected to benefit from the rapid growth of high-level assisted driving functions driven by major automakers like Li Auto, BYD, and Volkswagen [1][2]. - The domestic market for intelligent driving SoC chips is projected to grow significantly, with the market expected to expand from approximately USD 2 billion in 2024 to USD 6.2 billion by 2030 [2]. Company Overview - Horizon Robotics has a complete product matrix and strong software delivery capabilities, with a focus on high-performance chips and proprietary algorithms [3][14]. - The company has achieved significant milestones, including the mass production of various chip series and partnerships with major Tier 1 suppliers [4][14]. - The company’s revenue is projected to grow significantly, with expected revenues of RMB 3.66 billion, RMB 5.54 billion, and RMB 7.82 billion for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 53%, 51%, and 41% [5][6]. Market Dynamics - The intelligent driving industry is entering a high-growth phase, with the penetration rate of advanced intelligent driving expected to increase rapidly [2][20]. - Domestic chip suppliers are well-positioned to meet the demand for cost-effective and reliable solutions, which aligns with the needs of downstream automakers [2][21]. - The report highlights the potential for Horizon Robotics to expand into international markets, particularly as domestic brands seek to innovate globally [21][24]. Financial Projections - The company is expected to achieve a chip shipment volume of 4 million, 5.22 million, and 6.93 million units in 2025, 2026, and 2027 respectively, with corresponding revenues of RMB 3.66 billion, RMB 5.54 billion, and RMB 7.82 billion [5][6]. - The report anticipates a significant increase in average selling price (ASP) per vehicle as the company scales its operations and introduces new algorithms [20][21]. Competitive Landscape - Horizon Robotics faces competition from international players like Mobileye and NVIDIA, but the report suggests that its domestic advantages in cost and supply chain reliability will be beneficial [4][21]. - The company has established partnerships with leading global Tier 1 suppliers, which may enhance its competitive positioning in the international market [21][24].