Summary of Horizon Robotics Conference Call Company Overview - **Company**: Horizon Robotics - **Industry**: Intelligent driving solutions in China Key Points Market Penetration and Growth - The penetration rate of urban NOA (Navigation on Autopilot) is expected to accelerate in 2026, following rapid growth in highway NOA in 2025, with Horizon Robotics capturing over 40% of the highway NOA market by 2025 [1] - The company is expanding its HSD (High-Performance Driving) product matrix targeting mainstream economy vehicles priced above 100,000 RMB, which is anticipated to increase its market share in urban NOA [1] - Total revenue is projected to reach 15 billion RMB by 2028, with a compound annual growth rate (CAGR) of 58% from 2024 to 2028 [1] Financial Forecasts - Revenue estimates for fiscal years ending December are adjusted as follows: - FY25E: 3,269 million RMB (down 3.7% from previous estimate) - FY26E: 5,517 million RMB (down 5.6% from previous estimate) [2] - The company expects to achieve profitability by 2028, with total revenue reaching 15 billion RMB [9][24] Product Launch and Performance - Two HSD solutions launched in Q4 2025 have shown strong activation rates, with 12,000 units activated within two weeks of launch [5] - HSD600 and HSD300 are designed for vehicles priced above 130,000 RMB and are expected to achieve shipments of 25,000 units in 2025 and 461,000 units in 2026, respectively [5] - The company aims to cover approximately 70% of new energy vehicles with its urban NOA solutions starting in 2026 [5] Investor Sentiment and Competitive Landscape - Investor feedback indicates a consensus on the optimistic outlook for the acceleration of intelligent driving feature penetration, with Horizon Robotics seen as a key beneficiary [5] - Concerns exist regarding valuation, with the current stock price reflecting a 13x projected sales multiple for 2027, and increasing competition from third-party suppliers like Momenta [5] - Despite competition, Horizon's market leadership and unique technology position it for a valuation premium [5] Stock Performance and Valuation - The stock price has rebounded 24% since November 21, outperforming the Hang Seng Tech Index, which rose 3% during the same period [5] - The target price for the stock is set at 13 HKD by December 2026, based on a 19x forward price-to-sales ratio, which is approximately 79% higher than its Hong Kong peers [9][25] Risks - Key risks affecting the rating include intensified competition, potential order shortfalls due to demand shrinkage or project delays, and disruptions in R&D or supply chains [26] Financial Metrics - The company is expected to see significant revenue growth, with a projected revenue CAGR of 54% from 2024 to 2027 [24] - Adjusted net profit is forecasted to improve significantly by 2028, with total revenue reaching 15 billion RMB [9][24] Additional Insights - The company is positioned as a leading supplier of intelligent driving solutions in China, with a product portfolio that includes chips and algorithm suites for entry-level ADAS and higher-level scenarios [24] - Emerging demands from robotaxi and other robotic scenarios are expected to provide long-term growth potential for Horizon Robotics [24] This summary encapsulates the key insights and projections from the conference call, highlighting the company's growth trajectory, financial forecasts, product performance, and market positioning.

Group 1 - The core viewpoint of the article highlights the significant collaboration between BAIC Group and Horizon Robotics, focusing on the development of an all-scenario urban NOA system using Horizon's Journey 6M chips and BAIC's self-developed "Yuanjing AI Central Brain" technology [1] - Horizon Robotics' stock has seen a rise of over 4%, with a current price of 9.01 HKD and a trading volume of 547 million HKD [1] - Goldman Sachs reports that Horizon Robotics' HSD solutions have been adopted by multiple new models from Chery, including the Exeed ET5, Fengyun T9, and iCAR V27, with expectations for increased production and new projects by 2026 [1]

Core Viewpoint - Horizon Robotics-W (09660) has seen a stock increase of over 4%, currently trading at 9.01 HKD with a transaction volume of 547 million HKD, following a significant partnership announcement with BAIC Group to develop an all-scenario urban NOA system [1] Group 1: Partnership and Technology Development - On December 9, BAIC Group and Horizon Robotics announced a deep collaboration to jointly develop an all-scenario urban NOA system based on two Horizon Journey 6M chips [1] - The partnership will integrate BAIC's self-developed "Yuanjing AI Central Brain" technology, marking a significant breakthrough in intelligent technology for BAIC and injecting new momentum into the development of autonomous brand smart vehicles [1] Group 2: Market Expectations and Product Adoption - Goldman Sachs reported that Horizon Robotics' HSD solutions have been adopted by multiple new models from Chery, including the Exeed ET5, Fengyun T9, and iCAR V27 [1] - Goldman Sachs anticipates that by 2026, Horizon Robotics will see more models enter mass production and secure additional new projects, which will drive an increase in shipment volumes and higher average selling prices through product mix upgrades [1]

Core Viewpoint - Horizon Robotics-W (09660) has seen a stock increase of over 4%, currently trading at 9.01 HKD with a transaction volume of 547 million HKD, following a significant partnership announcement with BAIC Group to develop an all-scenario urban NOA system [1] Group 1: Partnership and Technology Development - BAIC Group and Horizon Robotics have announced a deep collaboration to jointly develop an all-scenario urban NOA system based on two Horizon Journey 6M chips [1] - The partnership will integrate BAIC's self-developed "Yuanjing AI Central Brain" technology, marking a significant breakthrough in intelligent technology for BAIC and injecting new momentum into the development of autonomous brand smart vehicles [1] Group 2: Market Expectations and Product Adoption - Goldman Sachs has reported that Horizon Robotics' HSD solutions have been adopted by multiple new models from Chery, including the Exeed ET5, Fengyun T9, and iCAR V27 [1] - Goldman Sachs anticipates that by 2026, Horizon Robotics will see more models enter mass production and secure additional new projects, which will enhance its shipment volume and lead to higher average selling prices through product mix upgrades [1]