Investment Rating - The report maintains a "Buy" rating for Horizon Robotics (9660.HK) with a target price of 7.5 HKD [1]. Core Views - The company is focusing on high-end products and a wide customer base, recently launching the L2 urban driving assistance system, Horizon HSD, and announcing collaborations with multiple automotive manufacturers and Tier 1 suppliers [3][5]. - The company is positioned as a local solution provider for driving assistance, leveraging its experience in mass production and engineering capabilities to capitalize on industry trends and product cycles [6]. Financial Summary - Revenue projections show significant growth from 1,552 million in 2023 to 10,004 million in 2027, with year-over-year growth rates of 71.3% in 2023 and 82.7% in 2027 [4]. - The net profit is expected to improve from a loss of 6,739 million in 2023 to a profit of 453 million in 2027, indicating a turnaround in profitability [4]. - Gross margin is projected to decline from 70.5% in 2023 to 54.8% in 2027, while net margin is expected to shift from -434.3% to 4.5% over the same period [4]. Product Development and Market Position - The HSD system includes three versions targeting different market segments, with mass production expected to begin in Q3 2025 [5]. - The J6 series chips are designed to meet diverse production needs, with the flagship J6P already in development and set to be featured in new models from Chery [5]. - The company has secured partnerships with 20 automotive brands and is expanding its global market presence through collaborations with international Tier 1 suppliers like Bosch and Denso [6]. Profitability Forecast - The report forecasts net profits of -22 billion, -14 billion, and 5 billion for the years 2025 to 2027, respectively, indicating a path towards profitability [6]. - The company is expected to experience a significant increase in revenue and a gradual improvement in net profit margins as it scales its operations [6].