First Read: Horizon Robotics "Deepening cooperation with Volkswagen in China"

Research evidence excerpt

First Read: Horizon Robotics "Deepening cooperation with Volkswagen in China"

Global Research

24 July 2026ab

First Read

EquitiesHorizon Robotics

Deepening cooperation with Volkswagen in China

China Semiconductors

12-month rating Buy

12m price target HK$9.00

Strengthening AI partnership with global OEM on advanced AD

Prior : HK$9.10

On July 22, Horizon announced it would strengthen its AI partnership with Volkswagen

(VW), per a press release and news report. Under the agreement, Carizon (VW and Price (24 Jul 2026) HK$4.42

Horizon's JV for AD solutions) will leverage Horizon's foundational AI model under a RIC: 9660.HK BBG: 9660 HK

white-box licensing arrangement to develop more high-end AD solutions (support city

Trading data and key metrics

NOA) and accelerate adoption. According to the press, Carizon's high-end AD solution

will further expand to VW's 7 new vehicle models in 3Q26, and VW is planning to roll 52-wk range HK$10.81-3.61

out L3 capability in China in 2027 which is likely enabled by Horizon's foundational AI Market cap. HK$64.8b/US$8.26b

capability. In our view, the deepened partnership between Horizon and VW point to Shares o/s 14,652m (ORD)

Horizon's strong capability in providing total solution of high-end AD to global tier-1 Free float 70%

OEM, covering high-end SoC, BPU license, AD algorithm and foundational AI model. Avg. daily volume ('000) 206,856

And it could also contribute billion RMB business license revenue opportunity to Avg. daily value (m) HK$1,047.7

Horizon. Common s/h equity (12/26E) Rmb16.1b

P/BV (12/26E) 3.8x

Amendment of CARIAD convertible loan and new convertible loan issuance Net debt to EBITDA (12/26E) 4.9x

Horizon has also announced a restructuring of its convertible loan with CARIAD (VW's

EPS (UBS, diluted) (Rmb)