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]

Core Viewpoint - Horizon Robotics reported strong mid-year performance with significant revenue growth and market leadership in the ADAS sector [1] Financial Performance - Revenue for the first half of the year reached 1.567 billion yuan, representing a year-on-year increase of 67.6% [1] - Gross profit amounted to 1.024 billion yuan, with a comprehensive gross margin of 65.4% [1] - Cash reserves stood at 16.1 billion yuan [1] Market Position - Horizon Robotics maintained a 45.8% market share in the ADAS basic auxiliary driving market, ranking first [1] - The company also held a 32.4% market share in the overall intelligent auxiliary driving computing solutions market for domestic brands [1] Analyst Insights - Credit Lyonnais highlighted the strong performance, noting a 68% year-on-year revenue growth driven by hardware shipments of 2 million units and an average product price increase of over 60% [1] - The J6B model is expected to see increased visibility in overseas markets, with significant contributions anticipated from J6P and the upgraded HSD in the passenger vehicle and Robotaxi sectors [1] - Revenue forecasts for Horizon Robotics from 2025 to 2027 have been raised by 3% to 5%, with the target price increased from 10.5 HKD to 11 HKD [1]

Summary of Horizon Robotics Conference Call Company Overview - **Company**: Horizon Robotics - **Ticker**: 9660.HK - **Industry**: China Autos & Shared Mobility - **Market Cap**: Rmb97,476.6 million - **Fiscal Year Ending**: December 2025 Key Financial Highlights - **1H25 Shipments**: Total shipments doubled year-over-year to 1.98 million units, with nearly 50% from AD products compared to less than 20% in 1H24, driven by major customers BYD and Li Auto, which accounted for over 50% of AD shipments [2] - **Full-Year Guidance**: Management maintains a full-year shipment guidance of approximately 4 million units, supported by increased orders from Geely, Chery, and Chang'an in 2H25 [2] - **Gross Profit Margin (GPM)**: GPM fell 13.6 percentage points year-over-year to 65.4% in 1H25, attributed to a shift in revenue mix away from licensing revenue. Management expects blended GPM to stabilize between 60-70% [3] - **R&D Expenses**: R&D expenses increased by 62% year-over-year to Rmb2.3 billion, reflecting investments in computing power for cloud training. Management indicated that while R&D expenses will continue to rise, other expenses such as headcount will be contained [3] Product Developments - **New Chip Launch**: The newly launched J6B chip is expected to see growing demand overseas for ADAS applications, with higher average selling price (ASP) and margin compared to legacy models [4] - **Upcoming Products**: The J6P and HSD debut on Chery and Chang'an in 2H25, along with the upcoming J6B, are anticipated to support further ASP growth [2] Market Position and Opportunities - **Market Share Gains**: Horizon Robotics is gaining market share in the AD chip market, with key bright spots including ASP expansion and overseas project wins, including several global projects from two Japanese OEMs projected to yield 7.5 million shipments over their lifecycle [8] - **Customer Base Expansion**: The company has secured 30 projects from nine joint venture brands in China, indicating a broadening customer base [8] Financial Projections - **Adjusted Net Loss**: Horizon reported an adjusted net loss of Rmb1.3 billion in 1H25, widening from Rmb804 million in 1H24 due to lower GPM and higher R&D spending [8] - **Revenue Forecast**: Projected revenue for the fiscal year ending December 2025 is Rmb3,590 million, with an expected EBITDA loss of Rmb2,539 million [5] Risks and Considerations - **Upside Risks**: Faster-than-expected ADAS/AD adoption growth in China and expanding customer base with additional key customers [11] - **Downside Risks**: Slower-than-expected ADAS/AD adoption, supply chain disruptions, and successful in-house hardware design initiatives by OEMs [11] Analyst Ratings and Price Target - **Stock Rating**: Overweight - **Price Target**: HK$10.50, representing a 32% upside from the current price of HK$7.94 [5] Conclusion Horizon Robotics is positioned for growth in the AD chip market, with strong shipment performance and new product launches. However, the company faces challenges related to profitability and competition in the rapidly evolving automotive technology landscape.

Core Viewpoint - The article discusses the strategic investment and control of a leading autonomous driving algorithm provider, referred to as Company Z, by a central state-owned enterprise, indicating a significant shift in the competitive landscape of the autonomous driving industry. Group 1: Investment and Control - Company Z has confirmed its strategic investment and control by a central state-owned enterprise, with the approval from relevant departments pending official announcement [4]. - The investment signifies that Company Z will officially join the "national team," gaining access to a broader customer base and substantial financial resources [5]. Group 2: Competitive Landscape - Company Z's entry into the Horizon ecosystem is expected to be a major benefit for Horizon, as Z is recognized for its strong engineering capabilities in mid-to-low computing power chip platforms [6]. - The competition is intensifying, with Company Z emerging as a formidable competitor to existing algorithm providers, particularly impacting the IPO prospects of another key player, Company QZ [6]. Group 3: Industry Trends - The autonomous driving sector is evolving into a large-scale industrial operation, requiring significant resources in terms of personnel, data, and technology, moving away from small entrepreneurial teams [6]. - Collaborations between major players and algorithm providers are becoming essential for competitiveness, as seen with various partnerships in the industry [6].

Core Viewpoint - Horizon Robotics is a leading supplier of advanced driver assistance systems (ADAS) and high-level autonomous driving solutions, benefiting from the expanding market for intelligent driving solutions driven by the trend of driving equality [1][2] Group 1: Market Growth and Revenue Projections - The company is expected to achieve revenues of 3.644 billion, 5.618 billion, and 8.190 billion CNY from 2025 to 2027, with year-on-year growth rates of 52.9%, 54.2%, and 45.8% respectively [1] - The global and Chinese intelligent driving solutions market is projected to reach 1,017.2 billion and 407.0 billion CNY by 2030, with a CAGR of 49.2% and 49.4% from 2023 to 2030 [1] Group 2: Competitive Positioning - The company is one of the few suppliers that can provide both chips and algorithms, enhancing its core competitiveness [2] - The hardware offerings include the J6P and HorizonCell, providing 1,120 TOPS of computing power, positioning the company among the top tier in domestic computing power [2] - The company has established a strong customer base, with products already integrated into models from Li Auto, NIO, and Chery, and has entered partnerships with BYD, Chery, and Bosch [2] Group 3: Product Development and Market Strategy - The company is accelerating its efforts in the high-level autonomous driving market, particularly in urban NOA (Navigation on Autopilot) solutions, with plans to launch HSD in 2025 [1][2] - The company currently holds a 35.9% market share in the Chinese OEM ADAS market, ranking first, and aims to increase its presence in the urban NOA market [1]

Core Viewpoint - The company is positioned as a leader in the ADAS integrated machine market, with expectations for hardware shipments to exceed 10 million units by 2025, driven by the "Smart Driving Equality" initiative [3]. Group 1: Market Position and Growth - In 2024, the company holds the largest market share in the front-view integrated machine computing solutions for domestic passenger vehicles in China, and ranks second among independent high-level autonomous driving solution providers [3]. - The CEO stated that by 2025, one in every three smart vehicles will be equipped with the company's technology, with projected product delivery volumes reaching 2.9 million units in 2024 and cumulative deliveries hitting 7.7 million units [3]. Group 2: Short to Long-term Growth Logic - Short-term: The J6E/M models have secured contracts with major brands like BYD, Geely, and Chery, with expectations for mid-to-high level smart driving shipments to surpass 2 million units in 2025 [4]. - Short to mid-term: The J6P and HSD integrated high-level smart driving solution is set for mass production in Q3 2025, with significant performance improvements over the previous generation [4]. - Mid-term: Collaborations with several Tier-1 suppliers are expected to facilitate international expansion, with the J6B model anticipated to see volume shipments in 2026 [4]. - Long-term: The successful mass production of the Xuri 5 chip, which is already used in various household robots, indicates potential future entry into humanoid robots and robotic dog supply chains [4]. Group 3: Stock Performance and Market Liquidity - Following the pre-IPO lock-up expiration on April 24, the stock price showed resilience, with only a 4.27% decline on the day of the release, and subsequent fluctuations indicating strong market support for the J6 series and HSD products [5]. - As of April 30, the company meets the criteria for inclusion in the Hong Kong Stock Connect, which, along with the lock-up expiration, is expected to enhance liquidity as it has been added to the Hang Seng Technology Index [6].