Horizon Robotics (9660 HK): Buy: 1H26 preview in line, platform thesis unchanged

Research evidence excerpt

Horizon Robotics (9660 HK): Buy: 1H26 preview in line, platform thesis unchanged

er. 2H26 catalysts: 1) We 52-WEEK PRICE (HKD)

see progress in Horizon’s cooperation with BYD as the most important near-term 12.00

catalyst. Under its ARM-like business model, Horizon could gain more content within 7.35

BYD’s AD stack rather than lose share to in-house development. 2) A broader recovery

in China’s AD market would also help. Autonomous driving is one of the clearest 07/25 01/26 07/262.70

real-world AI applications, with L2++ penetration in China increasing to 42% in May Target price: 10.70 High: 10.81 Low: 3.61 Current: 4.75

2026 (Exhibit 2), but commercialisation remains slow. Better user adoption, stronger Source: LSEG IBES, HSBC estimates

willingness to pay and more stable pricing should benefit Horizon as a key platform

supplier to the industry. 3) Further OEM wins beyond BYD should also support growth. Yuqian Ding*

We view Horizon’s expanded AI cooperation with Volkswagen (announced on 22July) Head of China Technology & Autos Research The Hongkong and Shanghai Banking Corporation Limited

as further validation of its platform capabilities and its ability to scale across multiple yuqian.ding@hsbc.com.hk

+852 2288 5108

OEM ecosystems.

Michel Liu* (Reg. No. S1700524090001)

Earnings revisions. We raise our 2026e earnings estimate to reflect the one-off fair Analyst, China Autos

HSBC Qianhai Securities Limited

value change related to the CARIAD convertible loan. We cut our estimates, mainly due michel.m.liu@hsbcqh.com.cn

to lower HSD shipment assumptions (see page 4 for details). +8610 5795 2351

Maintain Buy; cut TP to HKD10.70 (from HKD11.50). We use a target PS multiple of * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is