Summary of Horizon Robotics Conference Call Company Overview - **Company**: Horizon Robotics - **Ticker**: 9660.HK - **Rating**: Outperform - **Price Target**: HKD 15.00 - **Current Price**: HKD 8.44 - **Market Cap**: HKD 123.662 billion Key Industry Insights - **Industry**: Automotive and Smart Driving Technology - **Product Launches**: - Chery Exeed ET5, equipped with Horizon's Urban NOA solution, opened for pre-orders on November 13, 2025, marking a significant milestone for Horizon's high-end smart driving solutions [1][10] - Deepal L06 model, also featuring the Urban NOA solution, is set to launch next week [3][11] Sales Performance and Projections - **Chery Exeed Sales**: - The brand has 9 models with an average monthly sales volume of 5.3k units year-to-date (YTD) [2] - The Exeed ET5 is expected to be a strong performer, with a price range of RMB 160k–175k, and is positioned competitively against similar models [10][13] - **Deepal Sales**: - The Deepal brand has 6 models with a combined average monthly sales volume of 18.4k units YTD, with the two sedan models averaging 2k units monthly [3] - The Deepal L06 will be priced between RMB 140k–162k, enhancing the competitive landscape for Horizon's offerings [3][22] Competitive Landscape - **Market Positioning**: - Horizon's HSD solution is viewed as competitive against Nvidia's chips and other third-party algorithms, with potential for new OEM design wins in 2026 [4] - The pricing strategy of Horizon's L2++ solutions is highlighted as more cost-effective compared to competitors like Huawei, which charges a higher premium for similar features [10][12] Financial Metrics - **Earnings Projections**: - Reported EPS for F24A is RMB 0.51, with projections of (0.53) for F25E and (0.22) for F26E [8] - EV/Sales ratio is projected to decrease from 40.9x in F24A to 15.4x in F26E, indicating improving valuation metrics [8] Investment Implications - **Recommendation**: Horizon Robotics is rated as Outperform, with a price target of HKD 15, suggesting a potential upside of 78% from the current price [5][28] - **Catalysts to Watch**: - Sales performance of the Chery Exeed ET5 and Deepal L06 will be critical indicators for Horizon's market traction and future design wins [11][12] Risks - **Downside Risks**: - Slower-than-expected smart driving penetration and increased in-house development by OEMs could impact revenue growth [36] Conclusion - Horizon Robotics is positioned to capitalize on the growing demand for smart driving solutions, with competitive pricing and strong product launches expected to drive sales and market share in the coming years. The company's strategic partnerships and product offerings are critical to its growth trajectory and investment appeal.