Daiwa has issued a research report stating that HORIZONROBOT-W (09660) maintains steady chip delivery momentum in China with breakthrough progress in global orders. The firm reiterates its "buy" rating on HORIZONROBOT-W, raising the target price from HK$9.6 to HK$10.5, while also upgrading the company's revenue forecasts for this year and next year by 3% to 6% to reflect anticipated increases in chip deliveries.

The company delivered 1.98 million ADAS chips in the first half of the year, representing a 106% year-over-year increase. Due to changes in product mix, the average selling price of chips during the period rose 70% compared to the same period last year. Considering that HORIZONROBOT-W's deliveries may accelerate in the second half, the firm has raised its full-year chip delivery forecast to 4.5 million units.

The firm also expects that HORIZONROBOT-W will prioritize revenue expansion over achieving net profit in the near term. The company's research and development expenses increased to RMB 2.3 billion in the first half, with investment in cloud computing business growing more than threefold year-over-year.