Horizon Robotics: Better than expected H126 revenue and GPM

Research evidence excerpt

Horizon Robotics: Better than expected H126 revenue and GPM

Global Research

22 July 2026ab

First Read

EquitiesHorizon Robotics

Better than expected H126 revenue and GPM China

Semiconductors

12-month rating Buy

Our thoughts on the preliminary results

Horizon guided revenue to grow 24.8-34.5% YoY in H126; the mid-point of the 12m price target HK$9.10

revenue guidance was 17% below our forecast due to unfavorable vehicle demand in Prior : HK$10.00

China (-20% YoY), but still likely better than buy side expectations. We attribute the

Price (21 Jul 2026) HK$4.45

solid revenue growth (compared with industry demand) in H126 to: 1) rising penetration

of L2+/L2++ autonomous driving in China; and 2) higher ASP on an improved product RIC: 9660.HK BBG: 9660 HK

mix. In addition and based on the mid-point of GPM guidance, blended GPM in H126 Trading data and key metrics

was 63%, 2ppt higher than our forecast, mainly due to the"strong growth of the

52-wk range HK$10.81-3.61

licensing business". With vertical integration and first-mover advantages in AD SoC, we

Market cap. HK$65.2b/US$8.32b

believe rapidly growing licensing revenue underpins the resilience/attractiveness of the

Shares o/s 14,652m (ORD)

company's total solutions for its domestic and overseas OEM and tier-1 customers.

However, trading at 15.5x 2027E P/S (based on our updated forecasts), we believe Free float 70%

Horizon's leading capability in hardware and software is not fully appreciated by the Avg. daily volume ('000) 197,969

market. We slightly lower our PT due to our earnings forecast changes, but reiterate our Avg. daily value (m) HK$1,024

Buy rating. Common s/h equity (12/26E) Rmb8.79b

P/BV (12/26E) 6.4x

Highlights of Horizon's H126 preliminary results Net debt to EBITDA (12/26E) 4.8x

Revenue.