HSD 2.0 – Safe Before Sharp

Research evidence excerpt

HSD 2.0 – Safe Before Sharp

Idea

July 15, 2026 04:41 AM GMT

Morgan Stanley Asia Limited+MHorizon Robotics | Asia Pacific Tim Hsiao

Equity Analyst

HSD 2.0 – Safe Before Sharp Tim.Hsiao@morganstanley.comPeggy Wang +852 2848-1982

Research Associate

Peggy.Pc.Wang@morganstanley.com +852 3963-3934

We attended Horizon’s HSD 2.0 test ride and mgmt meeting. Shelley Wang, CFA

HSD 2.0 was assured in most scenarios but hesitant in complex Equity Analyst

Shelley.Wang@morganstanley.com +852 3963-0047

ones that should benefit from data training. With order concerns Joey Xu, CFA

largely discounted, we think the stock needs a trigger rather EquityJoey.Xu@morganstanley.comAnalyst +852 3963-0337

than a floor. Stay OW.

Stock priced for doubt, awaiting a trigger: The stock setup is range-bound in the

near term in our view, as the anemic 1H print and lack of a near-term catalyst or

valuation anchor should constrain the shares until there is greater clarity on the per-

vehicle content impact of the shift from hardware to licensing and design-win upside Horizon Robotics (9660.HK, 9660 HK)

at anchor customers, like BYD. We think the negatives are largely discounted, but a China Autos & Shared Mobility | China

catalyst is still missing. We will monitor J6/Starry 6P cadence, iCAR-to-mainstream Stock Rating Overweight

Industry View In-Line

progress, and project win quantification. Price target HK$8.70

Up/downside to price target (%) 97

Our test-ride in Shenzhen suggests the system performs smoothly on highways Shr price, close (Jul 14, 2026) HK$4.42

52-Week Range HK$11.32-3.60

and wide urban roads without being overly aggressive or conservative. However, it

Sh out, dil, curr (mn) 14,652

tends to hesitate for extended periods in complex scenarios, such as navigating Mkt cap, curr (mn) Rmb56,004.1