Shares of Horizon Robotics surged 12.9% in Hong Kong in the afternoon.

The boost comes as Horizon Robotics released its interim results. First half revenue reached RMB 1.567 billion, an increase of 67.6% year-on-year; gross profit amounted to RMB 1.024 billion, with a comprehensive gross margin of 65.4%; and the company held cash reserves of RMB 16.1 billion. During the interim earnings call, Horizon Robotics CEO Kai Yu noted that the group retained its leading position in the basic ADAS market with a 45.8% market share in the first half of this year, and also topped the domestic market for overall intelligent assisted driving computing solutions for indigenous brands with a 32.4% market share.

Lyon's research report highlighted Horizon Robotics' strong performance in the first half, with total revenue growing 68% year-on-year, driven primarily by hardware shipments reaching 2 million units and the average selling price of products increasing by over 60% year-on-year. The report predicts that the visibility of J6B shipments in overseas markets will improve moving forward, alongside successful progress with J6P and the upgraded HSD, contributing significantly to passenger vehicle and Robotaxi shipments over the next five years. The firm raised its revenue forecasts for Horizon Robotics by 3% to 5% for 2025 to 2027 and increased the target price from HKD 10.5 to HKD 11. The report believes that business developments in the coming months could act as a catalyst for the stock price, warranting a further re-rating, and reiterates an "Outperform" rating.