Citigroup: The shipment volume and profit margin trend of Horizon may improve in the second half of the year, and we maintain a buy rating on the stock.

The Citigroup report stated that the visibility of the shipment volume and profit margin trend of Horizon Robotics in the second half of the year is expected to improve. The company produces advanced driving assistance system chips and provides services to car manufacturers, and it is expected that the shipment volume of its flagship product will remain stable in the second half of the year. Citigroup stated that in the second half of the year, Geely's contribution to Horizon is expected to increase from the very low base in the first half of the year, while BYD's shipment volume is expected to be 300,000-350,000 units in a base scenario, and could exceed 500,000 units in an optimistic scenario. The relationship between Horizon and Bosch may also deepen. Citigroup expects Horizon's revenue in the first half of the year to be between 1.4 billion and 1.5 billion yuan, supported by the shipment of about 2 million sets of hardware. The company's revenue in the first half of 2024 is 934.6 million yuan. The bank maintains a buy rating on the stock with a target price of 12.30 Hong Kong dollars.