Investment Rating - The report maintains a "Recommended" rating for Horizon Robotics (09660.HK) with a target price of HKD 12.44 [2][7]. Core Views - The introduction of the Chery Star Era ET5 featuring Horizon's HSD autonomous driving solution is expected to drive accelerated growth, with the product anticipated to launch in November 2025 [2]. - The revenue forecasts for 2025-2027 have been adjusted positively, with expected shipments of 4 million, 5.04 million, and 7 million units respectively, reflecting year-on-year growth of 38%, 26%, and 39% [2]. Financial Summary - Main revenue projections for 2024A, 2025E, 2026E, and 2027E are HKD 2,384 million, HKD 3,620 million, HKD 5,851 million, and HKD 8,386 million, with year-on-year growth rates of 53.6%, 51.9%, 61.6%, and 43.3% respectively [3][8]. - The net profit attributable to shareholders is projected to be HKD 2,347 million in 2024, with losses of HKD 7,082 million, HKD 2,726 million, and HKD 1,436 million in 2025, 2026, and 2027 respectively [3][8]. - Earnings per share (EPS) are forecasted at HKD 0.17 for 2024, with negative EPS of HKD -0.51, -0.20, and -0.10 for the following years [3][8]. Market Position and Growth Potential - Horizon Robotics holds the leading market share in China for basic ADAS and overall ADAS solutions, with respective shares of 45.8% and 32.4% [7]. - The company has achieved significant growth in chip shipments, with 1H25 figures showing a doubling in J series chip shipments to 1.98 million units and a fivefold increase in J5/J6 chips supporting NOA functionality to 980,000 units [7]. - The establishment of a European headquarters and partnerships with international clients like Bosch and Volkswagen positions the company favorably for global expansion [7]. Valuation Perspective - The report suggests a target price-to-sales (PS) ratio of 27x for 2026, leading to a target market capitalization of HKD 158 billion [7]. - The valuation is compared to peers such as Nvidia, ARM, and Cambricon, with their projected PS ratios for 2026 being 21, 32, and 26 respectively [7].