HAITONG INT'L: We are raising the target price for HORIZONROBOT-W (09660) to HKD 12.5. Collaborating with ZF to verify the competitiveness of the J6P system.

HAITONG INT'L released a research report stating that, considering the valuation levels of the same industry, and taking into account the growth prospects and industry position of HORIZONROBOT-W (09660), HAITONG INT'L gives a target price of 12.5 Hong Kong dollars for Horizon Siasun Robot & Automation in the 2026 market sales rate of 28 times, corresponding to the previous target price of 12.3 Hong Kong dollars, with a market sales rate of 26 times in 2026, an increase of 2%; maintaining an "outperform the market" rating. Recently, Horizon Siasun Robot & Automation announced a cooperation with ZF Group to jointly develop an SAE Level 3 intelligent driving system for the Chinese market. ZF will provide its ProAI platform and system-level architecture design, responsible for hardware platform, vehicle integration, and safety verification; Horizon will provide the Journey6P chip (J6P, computing power >1,000 TOPS) and complete software algorithm stack. The system has already been designated by mainstream Chinese OEMs and is expected to be mass-produced in 2026. The company indicated that ZF, as a globally leading supplier of chassis and executive systems, has long had a deep accumulation in critical domains such as steering, braking, and suspension. This cooperation will integrate the traditional chassis control advantages with intelligent decision-making areas, significantly improving the execution consistency and safety redundancy capabilities of the entire vehicle intelligent driving system. HAITONG INT'L believes that this architecture is a key link for high-end intelligent driving systems to go from algorithm implementation to vehicle mass production, validating Horizon's algorithm compatibility and execution synergy in system-level applications. HAITONG INT'L stated that the cooperation with ZF makes Horizon the first Chinese intelligent driving chip manufacturer to simultaneously obtain core projects from the two global Tier-1 companies Bosch and ZF, strengthening the commercial certainty of its L3 products and expanding its global market space. HAITONG INT'L expects the company's revenue in fiscal years 2025, 2026, and 2027 to be 34.77 billion RMB, 59.07 billion RMB, and 88.90 billion RMB respectively, with year-on-year growth of 67.5%, 61.8%, and 57.9% respectively.