Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved a revenue of 3.76 billion yuan in 2025, representing a year-on-year growth of 58%. The adjusted net loss was 2.81 billion yuan, with an overall gross margin of 64.5%, down by 12.7 percentage points year-on-year, primarily due to changes in revenue structure. The performance exceeded market expectations [7]. - The mid-to-high-end intelligent driving solutions are ramping up, with both shipment volume and unit value increasing. The automotive product solutions business generated revenue of 1.62 billion yuan in 2025, a year-on-year increase of 144%. The core driver is the mass production of mid-to-high-end intelligent driving solutions like HSD, which began in November 2025, with over 22,000 units delivered by the end of the year [7]. - The company plans to launch a new generation of integrated smart vehicle chips and operating systems in 2026. The total shipment of the Chengzheng series processing hardware is expected to reach 4.01 million units, a year-on-year increase of 39%, with hardware supporting mid-to-high-end functions reaching 1.8 million units, up 380% year-on-year, accounting for 45% of total shipments [7]. - The company maintains a leading market share of 44.2% in the mid-to-high-end intelligent driving solutions for mainstream vehicles priced under 200,000 yuan [7]. - The authorized and service business generated revenue of 1.93 billion yuan in 2025, a year-on-year increase of 17%, with a gross margin of 94.5%, up 2.5 percentage points year-on-year. This growth is attributed to the continuous enhancement of integrated software and hardware solutions, leading to increased adoption by Tier-1 customers [7]. - The company has made significant progress overseas, securing contracts with 11 domestic automakers for over 40 export models and establishing connections with three international automakers through two international Tier-1 suppliers [7]. - The financial forecasts for 2026 and 2027 have been revised upwards to 5.67 billion yuan and 8.79 billion yuan, respectively, with an expected revenue of 13.02 billion yuan in 2028. The price-to-sales ratios for 2026, 2027, and 2028 are projected to be 19, 12, and 8 times, respectively [7]. Financial Summary - Total revenue for 2025 is projected at 3.76 billion yuan, with a year-on-year growth rate of 57.67% for 2026 and 50.83% for 2027 [1][8]. - The net profit attributable to the parent company is expected to be a loss of 10.47 billion yuan in 2025, improving to a loss of 3.44 billion yuan in 2026, and a smaller loss of 237.21 million yuan in 2027, before turning positive with a profit of 1.05 billion yuan in 2028 [1][8]. - The earnings per share (EPS) is forecasted to be -0.71 yuan in 2025, -0.23 yuan in 2026, -0.02 yuan in 2027, and 0.07 yuan in 2028 [1][8].

Event Overview - The company announced its 2025 performance, achieving revenue of 3.758 billion yuan, a year-on-year increase of 57.7%. However, the net profit attributable to shareholders was -10.469 billion yuan, marking a shift from profit to loss. The Non-GAAP net profit was -2.812 billion yuan, with a year-on-year loss increase of 1.131 billion yuan [2][3]. Revenue Growth and Profitability - Revenue for 2025 reached 3.758 billion yuan, up 57.7%, primarily driven by a nearly fivefold increase in the delivery of product solutions supporting highway and urban NOA functions, leading to a 144.2% increase in automotive product solutions revenue to 1.622 billion yuan [3]. - The net profit attributable to shareholders for 2025 was -10.469 billion yuan, while the Non-GAAP net profit was -2.812 billion yuan. The gross margin for 2025 was 64.5%, down 12.8 percentage points year-on-year, with the automotive product solutions gross margin at 34.5%, down 11.9 percentage points [3]. - The expense ratios for sales, management, and R&D were 16.8%, 19.3%, and 137.1%, respectively, showing a decrease in sales and management expenses but an increase in R&D expenses due to strategic investments in NOA and advanced driver assistance systems [3]. Growth Drivers in Advanced Driving - The company’s total shipment of automotive-grade processing hardware reached 4.01 million units in 2025, a year-on-year increase of 38.8%. The shipment of hardware supporting mid-to-high-level intelligent driving functions grew rapidly, accounting for 45% of total shipments, which is 4.8 times that of the same period in 2024 [4]. - The structural shift in product offerings led to an increase of over 75% in average vehicle value, maintaining a trend of simultaneous volume and price growth. In 2025, the company secured over 110 model designations, covering mainstream domestic and joint venture brands [4]. Global Expansion and Partnerships - The company has made significant progress in promoting the global expansion of its own brand and the intelligent transformation of overseas brands. By 2025, it had secured over 40 export model designations from 11 automotive manufacturers, with a cumulative export designation lifecycle of 2 million units [5]. - In terms of joint ventures, the company successfully obtained over 35 model designations from 9 joint venture brands in China. Additionally, through partnerships with two international tier-one suppliers, it secured model designations from three international automotive manufacturers for overseas markets, with a lifecycle designation shipment volume reaching 10 million units [5]. Market Position and Future Projections - The company is a leader in domestic intelligent driving solutions, possessing a full-stack technical capability that covers L2 to L4 level intelligent driving chip solutions. It has formed a complete layout of mainstream advanced driver assistance to high-level autonomous driving solutions, aiming to expand market share through performance and cost advantages [6]. - Revenue projections for 2026-2028 are estimated at 5.989 billion yuan, 9.359 billion yuan, and 14.161 billion yuan, respectively, with growth rates of 59.4%, 56.3%, and 51.3% [7].

Investment Rating - The report maintains a "Buy" rating for Horizon Robotics (9660.HK) [1] Core Insights - The company achieved a revenue of 3.758 billion RMB in 2025, representing a year-on-year growth of 57.7%. However, it reported a net loss attributable to shareholders of 10.469 billion RMB, indicating a shift from profit to loss [7] - The growth in revenue is primarily driven by the delivery of product solutions supporting highway and urban NOA functions, which increased nearly fivefold, leading to a 144.2% year-on-year increase in automotive product solutions revenue to 1.622 billion RMB [7] - The gross margin for 2025 was 64.5%, a decrease of 12.8 percentage points year-on-year, mainly due to a higher proportion of lower-margin automotive product solutions [7] - The company has seen a significant increase in the shipment of processing hardware for mid-to-high-end intelligent driving functions, with a total shipment of 4.01 million units in 2025, a year-on-year increase of 38.8% [7] - Horizon Robotics has expanded its global customer base, securing over 40 export model designations from 11 automotive manufacturers and over 35 model designations from 9 joint venture brands in China [7] Financial Forecasts - Revenue projections for 2026, 2027, and 2028 are 5.989 billion RMB, 9.359 billion RMB, and 14.161 billion RMB, respectively, with growth rates of 59.4%, 56.3%, and 51.3% [6] - The net profit attributable to shareholders is expected to improve significantly, with forecasts of -2.625 billion RMB in 2026, -854 million RMB in 2027, and a profit of 1.155 billion RMB in 2028 [6] - The report anticipates a gradual improvement in gross margin, with projections of 56.0%, 49.5%, and 45.7% for the years 2026, 2027, and 2028, respectively [6]

Core Viewpoint - Horizon Together Holding Ltd. has increased its stake in Youjia Innovation by acquiring a total of 688,200 H-shares, reflecting confidence in the company's long-term business development [2][3] Group 1: Investment Details - Horizon Together, a wholly-owned subsidiary of Horizon Robotics, has made this purchase in the open market [2] - The acquisition is based on the strong collaborative foundation between Horizon Robotics and Youjia Innovation over the years [3] Group 2: Business Collaboration - Youjia Innovation and Horizon Robotics have a deep partnership in the development of intelligent driving solutions and L4 unmanned logistics vehicle solutions [2] - Youjia Innovation's auxiliary driving domain controller products, developed based on Horizon Robotics' processing hardware, have achieved large-scale production and are being utilized by several leading domestic and international passenger and commercial vehicle manufacturers [2]

Core Viewpoint - Horizon Together, a cornerstone investor of Youjia Innovation (02431), has purchased a total of 688,200 H-shares in the open market, reflecting confidence in the company's long-term business development [1][2] Group 1: Investment Activity - Horizon Together acquired 688,200 shares of Youjia Innovation, indicating strong belief in the company's future prospects [1] - The acquisition was made in the open market, showcasing Horizon Together's commitment to the company's growth [2] Group 2: Strategic Partnership - Horizon Together's decision to increase its stake is based on the long-standing collaboration between its parent company, Horizon Robotics, and Youjia Innovation [2] - The partnership focuses on the development of intelligent driving solutions and L4 unmanned logistics vehicles, aiming to leverage technology and resources for rapid business growth [2] - The board of Youjia Innovation views this acquisition as a strong endorsement of the company's future and long-term development [2]

Core Viewpoint - Horizon Together, a cornerstone investor, has purchased a total of 688,200 shares of Youjia Innovation (02431) in the open market, reflecting confidence in the company's long-term business development [1][2] Group 1: Investment Activity - Horizon Together, fully owned by Horizon Robotics, has made this investment based on a long-standing collaboration with Youjia Innovation and a positive outlook on the company's future [2] - The acquisition of shares is seen as a demonstration of confidence in the company's future prospects and long-term development [2] Group 2: Company Collaboration - Youjia Innovation and Horizon Robotics have a deep collaboration in the development of intelligent driving solutions and L4 unmanned logistics vehicle solutions [1] - The partnership has led to the mass production of auxiliary driving domain controllers based on Horizon Robotics' processing hardware, which are now deployed in various leading passenger and commercial vehicle manufacturers both domestically and internationally [1]

Core Viewpoint - Horizon Robotics is experiencing rapid revenue growth in H1 2025, with a revenue of 1.567 billion yuan, a year-on-year increase of 68%, despite a strategic loss of 5.233 billion yuan [1] Group 1: Revenue and Profitability - H1 2025 revenue reached 1.567 billion yuan, up 68% YoY, with gross profit at 1.024 billion yuan, a 39% increase YoY, while net loss expanded to 5.233 billion yuan [1] - R&D expenditure for H1 2025 was 2.3 billion yuan, reflecting a 62% increase YoY, indicating a strategic focus on enhancing cloud services [1] Group 2: Automotive Product Solutions - Revenue from automotive product solutions surged to 778 million yuan, a 250% YoY increase, with a gross margin of 45.6%, up 3.9 percentage points [2] - The shipment of vehicle-grade processing hardware reached 1.98 million units, doubling YoY, with 980,000 units supporting highway-assisted driving, marking a sixfold increase from the previous year [2] - The company holds the top market share in basic and overall assisted driving solutions in China, at 45.8% and 32.4% respectively, with over 400 new model designations [2] Group 3: International Expansion - The company has established partnerships with global players, leading to the development of the Horizon Mono solution, with expected shipments exceeding 7.5 million units [3] - Nine joint venture automakers in China have designated 30 models for the company's solutions, with some set to begin production by the end of 2025 [3] Group 4: Licensing and Service Business - Revenue from automotive licensing and service business was 738 million yuan, a 7% YoY increase, with a gross margin of 89.7%, down 3.3 percentage points [3] - The company is providing algorithms and software to over 30 automotive manufacturers, helping to reduce product development cycles and costs [3] Group 5: Valuation and Future Projections - The company anticipates an increase in average selling price (ASP) for automotive product solutions in H2 2025, driven by the upcoming mass production of high-level driving solutions [3] - Revenue estimates for 2025 and 2026 have been adjusted to 3.697 billion yuan and 5.771 billion yuan respectively, with a projected revenue of 8.115 billion yuan for 2027 [3] - As of September 15, 2025, the company's market capitalization was approximately 141.2 billion HKD, translating to price-to-sales ratios of 34.9, 22.3, and 15.9 for 2025, 2026, and 2027 respectively [3]

Core Viewpoint - Horizon Robotics is experiencing rapid revenue growth in its automotive product solutions, with significant increases in both volume and pricing, and is expected to maintain a "buy" rating due to upcoming product launches and successful overseas expansion [1] Group 1: Financial Performance - In H1 2025, Horizon Robotics' automotive product solutions revenue reached 778 million yuan, representing a year-on-year increase of 250%; gross margin was 45.6%, up by 3.9 percentage points [2] - The shipment volume of the company's vehicle-grade Journey series processing hardware reached 1.98 million units, doubling year-on-year; shipments of hardware supporting highway-assisted driving reached 980,000 units, accounting for 49.5% of total shipments, which is six times the amount from the same period last year [2] - The market share for basic and overall assisted driving solutions in China is leading, at 45.8% and 32.4% respectively, with 400 new model designations accumulated, including over 100 models with highway-assisted driving capabilities [2] Group 2: Product Development and Partnerships - The company is closely collaborating with global partners to develop the new generation of basic assisted driving solutions, Horizon Mono, based on the Journey 6B processor, and has secured model designations from two Japanese automakers for markets outside China [3] - The partnership with overseas automakers is expected to yield over 7.5 million units in lifetime shipments, with nine joint venture automakers in China designating 30 models for the company's solutions, some of which are set to begin production by the end of 2025 [3] - The successful collaboration with the Volkswagen Group has further enhanced the company's international product layout and global brand influence [3]

Investment Rating - The report maintains a "Buy" rating for the company, with a market price of HKD 10.17 and an industry rating of outperforming the market [2][4]. Core Insights - The company is experiencing rapid revenue growth in H1 2025, with a year-on-year increase of 68%, while also facing strategic losses. The high-level autonomous driving (HSD) production is imminent, and initial success in overseas expansion is noted. The rating is supported by the anticipated rise in average selling price (ASP) for automotive solutions and an increase in contracts for licensing and services due to new product launches [4][5][8]. Financial Projections - Revenue estimates for 2025 and 2026 have been adjusted to HKD 36.97 billion and HKD 57.71 billion, respectively, with a projected revenue of HKD 81.15 billion for 2027. The company is expected to significantly increase its R&D expenses to maintain market competitiveness, impacting net profit forecasts for 2025 and 2026 [5][7]. - The company reported a revenue of HKD 15.67 billion in H1 2025, with a gross profit of HKD 10.24 billion, while net losses expanded to HKD 52.33 billion. R&D expenses reached HKD 23 billion, reflecting a 62% year-on-year increase [8]. Market Position and Product Development - The company's automotive product solutions saw a revenue increase of 250% year-on-year, with a gross margin of 45.6%. The shipment of automotive hardware doubled, with significant growth in products supporting highway-assisted driving [8]. - The company has secured contracts for over 400 new vehicle models, with more than 100 models featuring advanced driving capabilities. The HSD solution has been adopted by multiple vehicle manufacturers, with production expected to commence in the second half of 2025 [8]. International Expansion - Initial success in overseas markets is highlighted, with partnerships leading to the development of new basic driving assistance solutions. Collaborations with major global automotive manufacturers are expected to yield substantial shipment volumes [8]. Licensing and Service Business - The automotive licensing and service business generated HKD 7.38 billion in H1 2025, with a gross margin of 89.7%. The company is actively providing design and technical services to over 30 automotive manufacturers, enhancing ecosystem value [8].

Core Viewpoint - Company Horizon reported a significant revenue growth of 67.6% year-on-year for the first half of 2025, reaching 1.567 billion, despite an increase in operating losses [1][2] Revenue Breakdown - The product solutions segment saw a substantial revenue increase of 249.97%, generating 778 million, with hardware shipments doubling to 1.98 million units, including 490,000 units of high-value processing hardware supporting high-speed NOA functions, which is six times the amount from the same period last year [1] - The licensing and services segment generated 740 million, a year-on-year increase of 6.9%, with improved customer structure and reduced revenue concentration from a single partner [1][2] Profitability Metrics - The gross margin for the first half of 2025 was 65.36%, a decrease of 13.76 percentage points year-on-year, primarily due to changes in revenue structure with a lower proportion of high-margin licensing and services [1] Expense Analysis - Research and development expenses reached 2.3 billion, a year-on-year increase of 62%, driven by increased investment in cloud computing capabilities and the development of high-end products [2] Growth Opportunities - The company is set to launch its HSD advanced driver assistance products, which are expected to open new growth avenues, with initial production slated for the Chery Xingji Yuan E05 model [2] - The company has made progress in overseas expansion, securing model designations from two Japanese OEMs for markets outside China, with an expected total lifecycle shipment of over 7.5 million units [2] Investment Outlook - The company maintains a "Buy-A" rating, projecting revenues of 3.52 billion, 5.48 billion, and 8.02 billion for 2025 to 2027, with growth rates of 47.6%, 55.8%, and 46.3% respectively, and a target market value of 123.2 billion RMB [2]