According to Zhitong Finance APP, Huachuang Securities has released a research report setting a target price of HK$12.44 for HORIZONROBOT-W (09660) and maintaining a "Recommend" rating. Considering the positive factors on the company's revenue side, the firm has adjusted its core forecasts for 2025-2027: solution shipments of 4 million, 5.04 million, and 7 million units respectively, representing year-over-year growth of +38%, +26%, and +39%; revenue of RMB 3.62 billion, 5.85 billion, and 8.39 billion respectively, with year-over-year growth of +52%, +62%, and +43%. As a rare domestic third-party full-stack autonomous driving solution provider in China, the company stands to significantly benefit from the industrial trends of domestic substitution, automotive intelligence, and edge AI development.

Event: Chery Xingtu ET5 will be the first to feature Horizon's HSD autonomous driving solution and is expected to launch in November 2025.

Huachuang Securities' main viewpoints are as follows:

**HSD Solution Mass Production Imminent, High-Level Autonomous Driving Market Faces Changes**

At the Chengdu Auto Show, the Xingtu ET5 equipped with Horizon's J6P and HSD made its debut and is expected to officially launch in November 2025. Horizon's Journey series chips have achieved mass production breakthrough of 10 million units, and the company expects HSD mass production targets to reach 10 million units within the next 3-5 years. HSD (Horizon SuperDrive) is a one-stage end-to-end urban assisted driving system built by Horizon based on the high-performance Journey 6P (560TOPS), representing a leading integrated software-hardware autonomous driving solution following Huawei. The company has established its European headquarters in Munich and built deep relationships with international clients such as Bosch, Continental, and Volkswagen, with potential to lead Chinese autonomous driving solutions to the global market.

**High Growth in Chip Shipments and Revenue, Clear Medium-term Trend of Volume and Price Growth**

In 1H25, the company's market share in basic ADAS/overall ADAS solutions reached 45.8%/32.4%, ranking first in the Chinese market; automotive J-series chip shipments reached 1.98 million units, doubling year-over-year; NOA-capable (J5/J6) chip shipments reached 980,000 units, increasing 5-fold year-over-year. In 1H25, the company secured nearly 90 new vehicle model appointments, with over 15 models equipped with mid-to-high-level ADAS solutions entering mass production. The J6B has already secured appointments from two Japanese automakers. With continuous iteration of software and hardware solutions and order acquisitions, the company's revenue is expected to maintain high-speed growth and accelerate its path to profitability.

**Hang Seng Index Quarterly Review Passed, Company is a Rare AI Stock in Hong Kong Market**

In March 2025, the company was included as a constituent stock of the Hang Seng Composite Index and Hang Seng Tech Index. In May, it became eligible for Stock Connect investment. On August 22, the Hang Seng Index released quarterly review results effective September 8, with the Hang Seng Tech Index maintaining 30 constituent stocks unchanged. Due to the reset of the 8% individual stock weight limit, passive fund inflows have had a positive impact on certain stocks. The company represents a rare AI stock in the Hong Kong market, with both allocation value and risk appetite trending upward.

**Risk Warning:** Autonomous driving penetration rate below expectations, client development below expectations, geopolitical risks, etc.