SIASUN(SZ:300024)2025-10-16 13:07Summary of Horizon Robotics Conference Call Company Overview - Company: Horizon Robotics (9660.HK) - Industry: Technology, specifically focusing on cloud computing and intelligent driving technology Key Points and Arguments 1. Share Placement and Subscription: - Horizon Robotics completed a share placement and subscription in October 2025, issuing 639 million shares at HK$9.99 per share, raising net proceeds of HK$6.4 billion [1][2][4] 2. Use of Proceeds: - The net proceeds will be allocated as follows: - 60% for R&D to advance technological capabilities - 20% for investment in business partners - 10% for investment in emerging sectors - 10% for overseas business expansion [3][4] - The company plans to fully utilize these proceeds by the end of 2027/2028E [4] 3. Overseas Expansion: - Horizon Robotics is expanding operations in the EU market and securing design wins from Japanese OEM clients [4] 4. R&D Focus: - The company is investing in cloud resource expenses to iterate its model and plans to invest in emerging sectors, including Robotaxi [4] 5. Earnings Revision: - Revenue projections for 2027-2030 have been revised upwards by 1% to 5% due to expectations of higher penetration of the company's SoC platform [5][9] - Net income (NI) is expected to increase by 5% to 7% in the same period, while EPS revisions are minimal, reflecting share dilution from the subscription shares [9][10] 6. Financial Metrics: - The target price has been revised to HK$14.11 based on an EV/EBITDA multiple of 26.0x, reflecting the company's growth potential [10][14] - The company is projected to achieve significant revenue growth, with estimates reaching Rmb 33.98 billion by 2030 [12][16] 7. Risks: - Key risks include increased competition, slow product mix upgrades, slower customer base expansion, and supply chain risks due to geopolitical tensions [15] 8. Market Position: - Horizon Robotics aims to capture a larger market share in the ADAS & AD China market, with projections indicating growth from 2% in 2021 to 35% by 2027 [12] Additional Important Information - Valuation Methodology: The valuation is based on the correlation of EBITDA growth and trading EV/EBITDA multiples of peers, with a discounting back to 2026E using a COE of 11.5% [14] - Market Capitalization: As of the report, the market cap is HK$113.2 billion [16] - Investment Recommendation: The recommendation remains a "Buy" based on the company's growth prospects and strategic investments [1][10]