Core Viewpoint - The report from Credit Lyonnais maintains a target price of HKD 11 for Horizon Robotics (09660), suggesting that the current stock price has fully reflected negative factors such as share issuance, indicating greater upside potential [1] Group 1: Company Performance - Credit Lyonnais expects that the customer certification of J6P and the adoption of HSD600 by leading domestic automakers will serve as key catalysts in the coming months [1] - The firm has raised its estimate for the company's R&D expenditure for 2026-2027 by nearly RMB 1 billion, reflecting confidence in existing technology and the need for accelerated product iteration [1] Group 2: Market Outlook - The report maintains an "Outperform" rating, highlighting the competitive landscape in the high-level autonomous driving (AD) algorithm sector as a significant factor influencing the company's future performance [1]

Core Viewpoint - The report from Credit Lyonnais maintains a target price of HKD 11 for Horizon Robotics (09660), suggesting that the current stock price has fully reflected negative factors such as share issuance, indicating greater upside potential [1] Group 1: Company Performance and Outlook - Credit Lyonnais expects that the customer certification of J6P and the adoption of HSD600 by leading domestic automakers will serve as key catalysts in the coming months [1] - The firm has raised its estimates for the company's R&D expenditure for 2026-2027 by nearly RMB 1 billion, reflecting confidence in existing technology routes and the need for accelerated product iteration [1] Group 2: Market Conditions and Competitive Landscape - The report highlights the intense competition in the high-level autonomous driving (AD) algorithm sector, which is influencing the company's strategic decisions [1]

Summary of Horizon Robotics Conference Call Company Overview - **Company**: Horizon Robotics (9660.HK) - **Industry**: Smart Driving Technology Key Points Industry Trends - The smart driving trend in China is on the rise, transitioning from Advanced Driver Assistance Systems (ADAS) to highway Navigation on Autopilot (NOA) and city NOA, which is driving product mix upgrades for Horizon Robotics [2][3] Revenue Growth Projections - Horizon Robotics targets mid double-digit revenue growth over the next three years, driven by the smart driving trend, product mix upgrades, and customer penetration [2][3] - The average selling price (ASP) of chipsets is projected to increase from approximately US$30 in ADAS to US$100 in highway NOA, and potentially up to US$500 in city NOA, or US$700 when embedded with software [2] Customer Expansion Strategy - The company is focusing on local car OEMs such as BYD, Geely, Chery, and Changan, which are gaining market share in China [2] - Horizon Robotics plans to expand into joint venture (JV) car OEMs, which are primarily still in the ADAS phase, to leverage opportunities in smart driving and access global-tier car OEMs [2] Product Development and Outlook - For 2026, the company anticipates that product mix upgrades and customer expansion will be key drivers of growth [3] - The ADAS chipset revenue is expected to remain stable, while the J6M chipset for highway NOA and J6P for city NOA are projected to expand their customer base [3] - Horizon Robotics aims to have its solutions utilized in over 1,000 Robotaxis by 2026, collaborating with leading internet companies in China [3] Competitive Advantages - The company emphasizes its full-stack capability, particularly in software and AI, which is critical for maintaining a leading market position in the smart driving sector [8] - Horizon Robotics has a strong R&D team, with software engineers outnumbering hardware engineers by 3-4 times, enhancing its ability to design effective chipsets [8] Financial Projections - The 12-month target price for Horizon Robotics is set at HK$15.30, representing a potential upside of 102.9% from the current price of HK$7.54 [11] - Revenue projections for the upcoming years are as follows: - 2024: Rmb 2,383.6 million - 2025: Rmb 3,605.4 million - 2026: Rmb 7,166.2 million - 2027: Rmb 12,264.4 million [11] Risks - Key downside risks include: 1. Increased competition or pricing pressure in the auto supply chain amid slow demand [10] 2. Slower-than-expected product mix upgrades towards AD [10] 3. Delays in customer base expansion [10] 4. Supply chain risks due to geopolitical tensions [10] Conclusion Horizon Robotics is well-positioned to capitalize on the growing smart driving trend in China, with a strong focus on product development and customer expansion. However, the company faces several risks that could impact its growth trajectory.

Core Viewpoint - Goldman Sachs maintains a "Buy" rating for Horizon Robotics-W (09660), raising the target price from HKD 14.11 to HKD 15.3, which corresponds to an enterprise value to EBITDA multiple of 28 times [1] Group 1: Product Development and Applications - Horizon Robotics' Journey 6 platform is seeing increased applications in new vehicle models, including J6P and Super Drive High-Level Intelligent Driving (HSD) for Chery Automobile (09973) Exeed ET5, J6E for SAIC MG4530, and J6M for Changan Automobile (000625.SZ) Q07 and Geely Automobile (00175) Galaxy A7, enabling high-speed and urban navigation assistance driving (NOA) [1] - The J6P and HSD have already entered mass production in Chery Exeed ET5, with deliveries starting next month [1] Group 2: Market Outlook and Product Strategy - The company offers a comprehensive system-on-chip (SoC) platform solution ranging from 5 TOPS to 560 TOPS, covering various price segments and providing integrated hardware and software solutions based on customer needs [1] - There is optimism regarding the company's increasing shipment volumes and the transition of its product mix towards high-end SoCs [1]

Core Viewpoint - Goldman Sachs maintains a "Buy" rating for Horizon Robotics-W (09660) and raises the target price from HKD 14.11 to HKD 15.3, which corresponds to an enterprise value to EBITDA ratio of 28 times [1] Group 1: Product Development and Applications - Horizon Robotics' Journey 6 platform is seeing increased applications in new vehicle models, including J6P and Super Drive High-Level Intelligent Driving (HSD) for Chery Automobile (09973) Exeed ET5, J6E for SAIC MG4530, and J6M for Changan Automobile (000625.SZ) Qiyuan Q07 and Geely Automobile (00175) Galaxy A7, enabling high-speed and urban navigation assistance [1] - The Journey 6 series, specifically J6P and HSD, has entered mass production for Chery Exeed ET5, with deliveries starting next month [1] Group 2: Technology and Market Outlook - The company offers a comprehensive system-on-chip (SoC) platform solution ranging from 5 TOPS to 560 TOPS, covering various price segments and providing integrated hardware and software solutions based on customer needs [1] - There is optimism regarding the company's increasing shipment volumes and the transition of its product mix towards high-end SoCs [1]

Macro Insights - The recent appreciation of the Renminbi against the US dollar and a basket of currencies has been notable, with a 0.4% increase observed on August 28-29 [2] - The manufacturing PMI for August showed a slight recovery to 49.4% from 49.3% in July, indicating marginal improvement in manufacturing activity [3] - The non-manufacturing business activity index rose to 50.3% from 50.1% in July, suggesting a stable outlook for the service sector [3] Investment Strategy - The technology sector is experiencing increased investor interest, with TMT transaction volume exceeding 40% of total market activity, indicating a shift towards fundamental-driven market behavior [5] - The report suggests focusing on sectors benefiting from Renminbi appreciation, such as consumption, non-bank financials, and electric new energy, which are currently at relatively low valuations [5] - The report emphasizes the importance of maintaining flexibility in investment strategies, particularly in the context of market volatility and sector rotation [8] Company Performance - Alibaba's Q1 FY26 revenue reached 247.7 billion yuan, a year-on-year increase of 1.8%, with adjusted EBITA declining by 13.7% [14] - Huichuan Technology reported a 26.73% increase in revenue for H1 2025, reaching 20.509 billion yuan, with a net profit of 2.968 billion yuan, up 40.15% [18] - Zhonggu Logistics experienced a 41.6% increase in net profit for H1 2025, despite a 7.0% decline in revenue, attributed to high demand in the foreign trade container leasing market [19] Sector Analysis - The beverage sector showed strong sales performance, with revenue growth of 22.8% in Q2 2025, while the snack food sector faced challenges with a 0.3% decline [12] - The insurance sector is seeing a shift towards high-yield stocks, with the average allocation to FVOCI stocks increasing by 1.3 percentage points to 4.2% [10] - The real estate sector is under pressure, with China Overseas Development reporting a 4% decline in revenue for H1 2025, but maintaining a strong project pipeline for future growth [22]

Summary of Horizon Robotics Conference Call Company Overview - **Company**: Horizon Robotics (9660.HK) - **Industry**: Autonomous Driving Technology Key Financial Highlights - **1H25 Revenue**: Rmb1.6 billion, representing a **68% YoY increase** and **8% HoH increase**, exceeding estimates by **6%** and **9%** respectively [1][3] - **Gross Margin**: 65.1% in 1H25, consistent with expectations [3] - **Operating Loss**: Rmb1.855 billion in 1H25, higher than the estimated loss of Rmb1.412 billion due to increased cloud service fees [3][7] - **Net Loss**: Rmb5.233 billion in 1H25, significantly worse than the expected loss of Rmb1.4 billion [3][7] Product Development and Market Strategy - **Mass Production Plans**: The company plans to start mass production of the Horizon Robotics SuperDrive (HSD) on the Journey 6P platform in **2H25**, targeting urban NOA features in vehicles [1][2] - **Product Mix Upgrade**: Anticipated ramp-up of HSD and J6P platform in **2026**, with expectations for higher dollar content per vehicle due to increased ASP [2] - **Urban NOA Penetration**: The HSD solution is expected to penetrate lower-priced car models, enhancing the product mix towards higher-end integrated solutions [1][2] Market Performance and Future Outlook - **Highway NOA Shipments**: Shipments of highway NOA-capable products reached **0.98 million** in 1H25, accounting for **50%** of total shipments, contributing to improved blended ASP [1] - **Revenue Projections**: Revenue estimates for 2025E revised up to Rmb3.605 billion, reflecting a **1% increase** from previous estimates [8][16] - **Target Price**: The 12-month target price is set at **HK$14.00**, indicating a potential upside of **76.3%** from the current price of **HK$7.94** [16] Risks and Challenges - **Competitive Landscape**: Risks include increased competition and pricing pressure in the auto supply chain amid slow demand [15] - **Product Mix Transition**: Potential delays in the transition towards advanced driver-assistance systems (ADAS) could impact growth [15] - **Supply Chain Vulnerabilities**: Geopolitical tensions may pose supply chain risks [15] Conclusion - Horizon Robotics is positioned for growth with strong revenue increases driven by product innovation and market expansion. However, the company faces significant challenges, including operational losses and external market pressures. The outlook remains positive with a maintained "Buy" rating based on anticipated product advancements and market penetration strategies.

Core Viewpoint - Horizon Robotics-W (09660) demonstrated strong performance in the first half of the year, with total revenue increasing by 68% year-on-year, driven by hardware shipments reaching 2 million units and an average product selling price rising by over 60% [1] Group 1: Financial Performance - Total revenue increased by 68% year-on-year [1] - Hardware shipments reached 2 million units [1] - Average product selling price rose by over 60% [1] Group 2: Market Outlook - Increased visibility of J6B shipments in overseas markets [1] - Successful progress of J6P and upgraded HSD models [1] - Anticipated significant contribution to shipments in the passenger vehicle and Robotaxi sectors over the next five years [1] Group 3: Analyst Predictions - Revenue forecasts for Horizon Robotics for 2025 to 2027 have been raised by 3% to 5% [1] - Target price increased from HKD 10.5 to HKD 11 [1] - Business developments in the coming months are expected to act as catalysts for stock price growth, with a reaffirmation of the "outperform" rating [1]

Core Viewpoint - Horizon Robotics-W (09660) demonstrated strong performance in the first half of the year, with total revenue increasing by 68% year-on-year, driven by hardware shipments of 2 million units and an average product selling price increase of over 60% [1] Group 1 - The company has seen a significant increase in hardware shipment volumes, reaching 2 million units [1] - The average selling price of products has increased by over 60% year-on-year, contributing to revenue growth [1] - The visibility of J6B shipments in overseas markets has improved, along with successful progress in J6P and the upgraded HSD [1] Group 2 - The firm has raised its revenue forecasts for Horizon Robotics for 2025 to 2027 by 3% to 5% [1] - The target price for the stock has been increased from HKD 10.5 to HKD 11 [1] - Future business developments are expected to act as catalysts for the stock price, leading to potential further upgrades in ratings [1]

Core Viewpoint - Horizon Robotics-W (09660) has shown significant stock performance, with a 9.07% increase to HKD 8.66 and a trading volume of HKD 39.56 billion following the release of its interim results, indicating strong market confidence in the company's growth potential [1] Financial Performance - The company reported a revenue of RMB 1.567 billion for the first half of the year, representing a year-on-year growth of 67.6% [1] - Gross profit reached RMB 1.024 billion, with a comprehensive gross margin of 65.4% [1] - Cash reserves stood at RMB 16.1 billion, providing a solid financial foundation for future growth [1] Market Position - The CEO stated that the company maintained a leading market share of 45.8% in the ADAS (Advanced Driver Assistance Systems) basic auxiliary driving market and 32.4% in the overall intelligent auxiliary driving computing solutions market for domestic brands in mainland China [1] Analyst Insights - Citi's research report highlighted the strong performance of Horizon Robotics, with total revenue growth of 68% year-on-year, driven by hardware shipments of 2 million units and an average product selling price increase of over 60% [1] - The report anticipates increased visibility in overseas shipments of the J6B model, along with successful progress in the J6P and upgraded HSD models, predicting significant contributions to shipments in the passenger vehicle and Robotaxi sectors over the next five years [1] - The revenue forecast for Horizon Robotics for 2025 to 2027 has been raised by 3% to 5%, with the target price increased from HKD 10.5 to HKD 11, suggesting that upcoming business developments could act as catalysts for stock price growth and reaffirming a "outperform" rating [1]