Broker Name: China Galaxy International Securities (Hong Kong) Co., Limited
Date of Report: March 20, 2026
Excerpt from China Galaxy International Securities (Hong Kong) Co., Limited report.
Report Summary
- Horizon Robotics missed gross profit margin expectations due to higher production costs but remains a leading supplier in China’s smart driving market.
- The company will launch its first cockpit-driving integrated Agentic Car SoC in April 2026, aiming to reduce OEM costs with high integration and expects continued mass market penetration for its Horizon SuperDrive (HSD) solutions, projecting 400,000 HSD deliveries in FY26F.
- Chip shipment and revenue forecasts were revised down due to a less positive auto market outlook and the phasing out of subsidies, but the company maintains a positive long-term growth perspective with a target price of HK\$10.5 (upside of 43.1% vs. current price).
- Key risks include fiercer competition and more OEMs developing chips in-house, while rapid product iterations and faster adoption of autonomous driving could be catalysts for re-rating.
- Financials show strong revenue growth potential but continued operating losses until 2028, when profitability is expected to be achieved.
Above is an excerpt from a report by China Galaxy International Securities (Hong Kong) Co., Limited. Clients of China Galaxy International Securities (Hong Kong) Co., Limited can be the first to access the full report from the China Galaxy International Securities (Hong Kong) Co., Limited website: https://www.chinastock.com.hk
