: Maintains "buy" rating on HORIZONROBOT-W (09660) with a target price of HK$12.44.

Huachuang Securities released a research report stating that the target price for HORIZONROBOT-W (09660) is HKD 12.44, maintaining a "recommended" rating. Considering the positive factors on the company's revenue side, the core forecast for 2025-2027 has been adjusted: the shipment plan is 4 million, 5.04 million, and 7 million units, with year-on-year growth of +38%, +26%, and +39%; revenue is expected to be 36.2 billion, 58.5 billion, and 83.9 billion yuan, with year-on-year growth of +52%, +62%, and +43%. As a scarce third-party full-stack smart driving solution provider in China, the company deeply benefits from the industrial trends of domestic substitution, intelligentization of automobiles, and the development of end-side AI. Event: The Chery Star Era ET5 will be the first to adopt the Horizon HSD smart driving solution, expected to be launched in November 2025. Huachuang Securities' main points are as follows: HSD solution mass production is imminent, and the high-end smart driving market is undergoing changes. At the Chengdu Auto Show, the Star Journey ET5, equipped with the Horizon J6P and HSD, made its debut, with plans for an official launch in November 2025. The Horizon Journey series chips have already reached mass production of over 10 million units, and the company's future goal is to achieve mass production of 10 million HSD units in 3-5 years. HSD (Horizon SuperDrive) is a one-piece end-to-end urban area assisted driving system developed by Horizon based on the high-performance Journey 6P (560 TOPS), making it a leading integrated smart driving solution after Huawei. The company has set up its European headquarters in Munich and established deep connections with international customers such as Bosch, Continental, and Volkswagen. It is expected to lead Chinese smart driving solutions towards global expansion. With a sharp increase in chip shipments and revenue, the trend of rising both quantity and price in the medium term is clear. In 1H25, the company's market share in basic ADAS/overall ADAS solution was 45.8%/32.4%, ranking first in the Chinese market. The shipment volume of vehicle-mounted J-series chips doubled to 1.98 million units, with the shipment of chips supporting NOA function (J5/J6) reaching 980,000 units, a five-fold increase year-on-year. In 1H25, the company added nearly 90 models for production, with over 15 models equipped with mid-to-high-end ADAS solutions going into production. J6B has already been designated by two Japanese automakers. With continuous iteration of software and hardware solutions and order acquisition, the company's revenue is expected to maintain high-speed growth, accelerating its turnaround. Passing the Hang Seng Index quarterly review, the company is a rare AI target in the Hong Kong stock market. In March 2025, the company was included in the Hang Seng Composite Index and Hang Seng Technology Index constituents. In May, it became an eligible investment target for the Hong Kong Stock Connect program. The Hang Seng Index announced the quarterly review results on August 22, effective September 8, with the number of constituent stocks in the Hang Seng Technology Index remaining at 30. Due to the reset of the individual stock weight limit to 8%, the inflow of passive funds has had a positive impact on some individual stocks. The company is a rare AI target in the Hong Kong stock market, with both investment value and risk preferences on the rise. Risk warning: Lower-than-expected penetration rate of smart driving technology, slower-than-expected customer development, geopolitical risks, etc.