UOB Kay Hian
Date of Report: Thursday, 28 August 2025

Horizon Robotics Delivers Robust 1H25 Growth: Doubling Hardware Shipments, Eyes Mass Production of SuperDrive
Executive Summary
Horizon Robotics (9660 HK), a leading technology solutions provider for advanced driver assistance systems and autonomous driving, posted a stellar first half for 2025. The company recorded a 67.6% year-on-year revenue surge, driven by more than doubling its hardware shipments and strong traction in higher-end products. UOB Kay Hian maintains a BUY recommendation, raising the target price to HK$8.88 as the firm positions itself for mass production of its next-generation Horizon SuperDrive (HSD) solution and continued leadership in China’s rapidly evolving intelligent driving market.
Company Overview
Business: Technology provider specializing in advanced driver assistance (ADAS), autonomous driving, and related passenger vehicle solutions.
Market Position: Market leader in ADAS among Chinese OEMs.
Key Shareholder: Dr. Kai Yu (12.5% stake).
Ticker: 9660 HK
Market Cap: HK$110.2 billion (US$14.1 billion)
Share Price (as of report): HK$7.94
Target Price: HK$8.88 (up from previous HK$7.45)
52-week High/Low: HK$10.38 / HK$3.32
YTD Performance: +120.6%
1H25 Results: Surging Hardware Shipments Power Revenue Growth
Horizon Robotics delivered impressive top-line growth in 1H25, with revenue climbing 67.6% year-on-year to RMB1.57 billion. This represented 45% of the broker’s full-year estimate.

Key Performance Highlights
Hardware Shipments: Surged to 1.98 million units in 1H25, more than double year-on-year, with cumulative shipments surpassing 10 million units.
Highway NOA-Capable Hardware: Shipments increased six-fold to 0.98 million units, representing 49.5% of total.
Licensing Revenue: Grew 6.9% YoY to RMB739 million, supporting over 30 automakers and ecosystem partners.
Adjusted Operating Loss: Widened due to increased R&D investments; gross margin dropped 13.7ppt YoY to 65.4% as hardware revenue mix grew.
Strategic Investments and Financials
R&D Spending: Up 62% YoY to RMB2.3 billion, accounting for 147% of revenue as Horizon scaled up investment in cloud model training.
Adjusted Net Loss: Increased 34.9% YoY to RMB1.33 billion, representing 51% of full-year loss estimate.
Operating Expense Ratio: Improved by 15.4ppt YoY to 183.8% in 1H25, reflecting operating leverage.

Stock Impact and Market Outlook
Penetration into Lower-Priced Vehicle Segments
Urban Assisted Driving: Penetrating vehicles priced at RMB150,000 and above, with plans to move into the RMB100,000+ segment (80% of China’s passenger vehicles; addressable market: 20 million vehicles).
Mid-to-High End Products: Management targets 50% contribution from these products in 2025 shipments.
Horizon SuperDrive (HSD) & J6P Chip
HSD Solution: Upgraded urban-NOA solution, leveraging J6P chip with 560 TOPS computing power.
Launch: J6P to debut on Chery’s Exeed Exlantinx E05 by end-2025.
Mass Production: Expected in 3Q25.
Shipment Forecast: J6P shipments projected at 30,000 (2025), 250,000 (2026), and 1.5 million (2027), or 0.8%, 4.2%, and 17.6% of total shipments, respectively.
Industry Leadership
ADAS Market Share: 32.4% among Chinese OEMs.
Overall Intelligent Driving Solutions: 45.8% share.
Model Nominations: Nearly 400 cumulative, with over 100 featuring highway NOA; more than 15 new models in mass production in 1H25.
International Expansion
Global Partnerships: Nominations from nine JV automakers (including Volkswagen, Japan’s largest automotive group) for 30 models in China.
Japanese OEMs: Secured design wins for two Japanese automakers for overseas markets, using the next-gen Horizon Mono solution with J6B chips.
J6B Chip: Doubles integrated ADAS performance, reduces system cost, power, and size. Anticipated delivery: over 7.5 million units over lifecycle for these two nominations.
Positive Second Half 2025 Outlook
Shipment Target: Management is confident in achieving 4 million hardware shipments in 2025, with a balanced low-end and mid-to-high end chip mix.
Key Customers: BYD and Li Auto contributed over 50% of mid-to-high end chips in 1H25; traditional OEMs like Geely, Chery, and Changan expected to ramp up in 2H25.
Earnings Revision and Financial Projections
2025-26 Forecasts: Largely unchanged for revenue and net loss.
2027 Estimates: Revenue forecast raised 34% to RMB12.5 billion on higher ASP from J6P shipments; net loss reduced by 32% to RMB405 million due to operating leverage.
Profitability Outlook: Breakeven forecasted in 2028 with net profit of RMB1.0 billion.
Valuation and Recommendation
BUY Rating Maintained
Target Price: HK$8.88 (based on 9.2x 2027 EV/Sales, 1.5SD above peer average; implies 18.2x 2026 EV/Sales)
Current Valuation: Trading at 15.5x 2026 EV/Sales, 8.2x 2027 EV/Sales.
Key Financial Metrics

Conclusion: Horizon Robotics—A Core China Tech Play for Intelligent Mobility
With surging hardware shipments, a robust technology pipeline, and an expanding footprint in both domestic and international markets, Horizon Robotics is well-positioned to capture the next wave of intelligent driving adoption. The company’s strategic investments in R&D, leadership in ADAS/AD, and successful customer wins underpin strong growth prospects. Investors seeking exposure to China’s rapidly digitizing auto sector may find Horizon Robotics a compelling opportunity as it drives toward profitability and broader market leadership in the coming years.