Group 1 - The cumulative shipment of the Journey series has exceeded 10 million units, with the self-developed BPU architecture showing a performance improvement of 246 times over six years [1] - The Journey 6 series, set to begin mass production in 2025, is based on the new Nash architecture, covering computing power from 10 to 560 TOPS, and is the only domestic solution meeting the needs for L2 to full-scene urban driving assistance [1] - The Journey series has over 40 domestic and international automotive clients, with more than 400 models and serving over 6 million vehicle owners [1] Group 2 - The HSD is entering a large-scale mass production phase, with its technology path gaining widespread market validation and recognition [2] - The HSD employs a one-piece end-to-end architecture with reinforcement learning capabilities, significantly enhancing the safety, efficiency, and comfort of driving assistance [2] - The new flagship vehicle computing solution, Journey 6P, achieves a performance leap with up to 560 TOPS, supporting the large-scale implementation of HSD [2] Group 3 - The company expects revenues of 3.59 billion, 5.60 billion, and 8.14 billion yuan for 2025, 2026, and 2027 respectively, with net profits of -703 million, -151 million, and -83 million yuan [2]

Group 1 - The core viewpoint of the report is that Horizon Robotics-W (09660) has achieved cumulative shipments of over 10 million units for its Journey series, maintaining a "Buy" rating [1] - The company's self-developed intelligent computing architecture, BPU, has undergone three iterations, improving its computing performance by 246 times over six years [1] - The Journey 6 series, set to begin mass production in 2025, is based on the new generation BPU Nash architecture, covering 10-560 TOPS computing power, and is the only domestic solution that meets the needs for L2 assisted driving to full-scene urban assisted driving [1] Group 2 - The HSD (High-Performance Smart Driving) technology is entering large-scale mass production, with a diverse range of vehicle models being covered [2] - HSD employs a one-piece end-to-end architecture with reinforcement learning capabilities, significantly enhancing the safety, efficiency, and comfort of assisted driving [2] - The new flagship vehicle intelligent computing solution, Journey 6P, achieves a generational performance leap with up to 560 TOPS computing power, supporting the large-scale implementation of HSD [2]

Group 1 - The core viewpoint of the articles highlights the significant advancements and market presence of Horizon Robotics, particularly with its Journey series achieving over 10 million units shipped and maintaining a "buy" rating from Zhongyou Securities [1] - The company's self-developed intelligent computing architecture, BPU, has seen a performance increase of 246 times over six years, evolving through three generations from Bernoulli to Nash architecture [1] - The Journey 6 series, set to begin mass production in 2025, is based on the new Nash architecture and offers computing power ranging from 10 to 560 TOPS, making it the only domestic solution that meets the diverse needs of smart vehicles from L2 to full-scene urban driving [1] Group 2 - The HSD (High-Performance Smart Driving) technology is entering large-scale production, with a growing number of vehicle models being covered, indicating strong market validation and recognition [2] - HSD employs a one-piece end-to-end architecture with integrated reinforcement learning capabilities, significantly enhancing the safety, efficiency, and comfort of assisted driving [2] - The new flagship vehicle intelligent computing solution, Journey 6P, achieves a generational performance leap with up to 560 TOPS of computing power, supporting the large-scale implementation of HSD [2]

Investment Rating - The report maintains a "Buy" rating for the company [2][7] Core Insights - The company has achieved cumulative shipments of over 10 million units for its Journey series, with its proprietary BPU® architecture showing a 246-fold performance improvement over six years. The new Journey®6 series, set for mass production in 2025, is the only domestic solution that meets the diverse needs of smart vehicles from L2 to full-scene urban driving [5][6] - The company is entering a rapid growth phase with its HSD (High Safety Driving) technology, which has been validated by the market and is now in mass production. The flagship Journey 6P, with a computing power of up to 560 TOPS, supports the large-scale deployment of HSD, with partnerships established with over 10 automotive brands and more than 20 models [6] - Revenue projections for the company are estimated at 35.9 billion, 56.0 billion, and 81.4 billion yuan for the years 2025, 2026, and 2027 respectively, with expected net losses of 70.3 million, 15.1 million, and 8.3 million yuan for the same years [7][9] Financial Summary - The company is projected to achieve revenues of 35.89 billion yuan in 2025, with a growth rate of 51%, and a net profit attributable to the parent company of -7.025 billion yuan [9][12] - The company's operating income is expected to grow at a compound annual growth rate (CAGR) of 54% from 2024 to 2027, with a projected net profit margin improvement over the same period [12] - The company’s asset-liability ratio is projected to increase significantly, reaching 95.56% by 2027, indicating a high level of leverage [12]

Core Viewpoint - Horizon has delivered an impressive performance in the intelligent driving competition, showcasing significant revenue growth and industry-leading gross margins in its recent financial report for the first half of the year [1][9]. Revenue and Growth - Horizon's revenue surged by 67.6% year-on-year to 1.567 billion yuan, with product solutions contributing a remarkable 250% increase to 778 million yuan [1][2]. - The company achieved a gross profit of 1.024 billion yuan, resulting in a gross margin of 65.4%, leading the industry [1][9]. - The hardware shipment of Horizon's Journey series exceeded 10 million units, making it the first intelligent driving technology company in China to reach this milestone [1]. Product and Market Dynamics - The increase in revenue is attributed to a significant rise in shipment volumes, with the Journey series processing hardware shipments reaching 1.98 million units, doubling year-on-year [5]. - The hardware supporting high-speed auxiliary driving features saw shipments of 980,000 units, a sixfold increase compared to the same period last year [5][8]. - The market for intelligent driving is shifting towards higher-end features, with models equipped with advanced driving assistance systems (ADAS) increasing from 20% to 32% of total sales [8]. Research and Development Investment - Horizon's R&D expenses reached 2.3 billion yuan, a 62% increase year-on-year, primarily for cloud services and urban auxiliary driving system investments [9]. - The company is focused on enhancing its delivery capabilities through substantial R&D investments, adhering to the principle of "investing first, yielding later" in the technology-intensive intelligent driving sector [9]. Future Outlook - The company is optimistic about the second half of the year, projecting total shipments to exceed 4 million units, with a balanced distribution between low-end and mid-to-high-end products [10][11]. - The Horizon SuperDrive (HSD) system is set to enter mass production, with the first model featuring this system, the Xingtai ET5, recently unveiled [10][14]. - Horizon is also expanding its partnerships with international automotive companies, aiming to penetrate overseas markets and establish collaborations with top-tier suppliers [17]. Strategic Insights - Horizon's success is attributed to its strategic focus on the automotive sector and its differentiated approach, emphasizing a "soft and hard integration" technology route [18][19]. - The company maintains a cautious financial strategy, ensuring sufficient cash reserves even during challenging periods, allowing it to navigate uncertainties effectively [21].

Group 1 - The cumulative shipment of the Journey series is expected to exceed 10 million units, with over 8 million units already shipped, indicating that one in three smart cars is equipped with Horizon's driving assistance solutions [1] - The company has established close collaborations with several leading Tier-1 companies, including Bosch, Denso, and ZF, to develop differentiated intelligent driving solutions based on the Journey 6 series [1] - The HSD system, the first domestic full-stack development for urban driving assistance, includes HSD300, HSD600, and HSD1200, designed for various performance levels and scenarios [2] Group 2 - The HSD system utilizes the Journey 6P computing solution and features an end-to-end architecture that enhances user experience by providing a seamless and safe driving experience [2] - The company anticipates revenues of 3.562 billion, 5.529 billion, and 7.983 billion yuan for the years 2025, 2026, and 2027, respectively, with projected net profits of -196.9 million, -94.5 million, and 10.5 million yuan [2]

Investment Rating - The report maintains a "Buy" rating for the company [2][7] Core Insights - The cumulative shipment of the company's "Zhengcheng" series is expected to exceed 10 million units, with over 8 million units already shipped. The company has established close partnerships with leading Tier-1 companies such as Bosch, Denso, and ZF, supporting advanced driver assistance and high-level autonomous driving solutions [5] - The HSD system, the first full-stack development of its kind in China, is designed for urban driving assistance and is expected to be integrated into strategic models of several leading OEM brands this year [6] Financial Performance and Projections - The company is projected to achieve revenues of 35.62 billion, 55.29 billion, and 79.83 billion yuan for the years 2025, 2026, and 2027 respectively, with net profits expected to be -1.969 billion, -0.945 billion, and 0.105 billion yuan for the same years [7][9] - The revenue growth rates are forecasted at 54%, 49%, and 55% for the years 2025, 2026, and 2027 respectively, while the net profit growth rates are expected to be 135%, -184%, and 52% [9][10]

Core Viewpoint - Horizon Robotics has officially entered the Hong Kong Stock Connect list, indicating strong market recognition of its integrated software and hardware technology path and signaling an acceleration in value discovery and re-evaluation as a leading provider of intelligent assisted driving solutions in China [1] Group 1: Market Performance and Recognition - Since its listing in late October 2024, Horizon Robotics has been a focal point in the industry, with its stock showing high activity and receiving positive coverage from major domestic and international brokerages [1] - The successful inclusion in the Hong Kong Stock Connect reflects the high popularity of Horizon Robotics in the capital market [1] Group 2: Product Development and Market Position - Horizon Robotics has consistently attracted investor interest due to its strong performance in the intelligent assisted driving sector, with significant product launches like the Journey series, which has gained trust from major clients like BYD [2] - The Journey family is expected to exceed 8 million units shipped by Q1 2025, showcasing robust market growth, with a market share of over 40% in China's OEM advanced assisted driving solutions [2] - The recent launch of the L2 urban assisted driving system HSD has garnered significant attention, with partnerships established with major automotive manufacturers like Chery and Volkswagen for mass production [3][4] Group 3: Technological Advancements and Competitive Edge - The HSD system features the advanced Journey 6P computing solution, which allows for hardware modularity and software upgrades, catering to diverse customer needs [4] - Horizon Robotics has developed a strong technological foundation with its self-developed BPU architecture and has established a deep "moat" in the market, collaborating with over 40 automotive brands and achieving over 8 million units in front-end production [6] Group 4: Future Growth Potential - The automotive industry is moving towards a "universal intelligent assisted driving" era, with BYD leading the charge, which is expected to benefit Horizon Robotics significantly as other manufacturers follow suit [5] - The company's comprehensive solutions and full-stack delivery capabilities position it to capitalize on the industry's growth, enhancing its visibility and potential for future expansion [5] - Analysts have expressed optimism about Horizon Robotics' long-term growth, with several brokerages issuing "buy" ratings and projecting profitability by 2027 [7]