[Brokerage Focus] Guotai Junan first gave Horizon Robot (09660) an "overweight" rating, indicating that its product strength is expected to be comparable to international first-tier manufacturers

Jinwu Financial InformationGuotai JunanAccording to the research report, horizonRobot(09660) has become the leader of domestic intelligent driving solutions, and its product strength is expected to be comparable to that of international first-line manufacturers. Industry competition barriers are extremely high. As the core components of smart cars, advanced assisted driving (ADAS) and advanced autonomous driving (AD) solutions need to meet strict safety and quality requirements. These requirements include going through complex audit and certification processes, often taking several years, and meeting automotive-grade standards. The company has significant advantages in the processing efficiency, cost performance and service capabilities of software and hardware systems. The bank said that there is a vast space for intelligent driving, and Horizon occupies the leading position in advanced assisted driving and high-end autonomous driving in China. The intelligence degree of domestic automobiles is higher than the global average. The strong rise of local OEMs, high consumer acceptance and government policy support. With the support of many policies, seven OEMs have obtained Level 3 high-end autonomous driving test licenses for urban road conditions. Among them, five of the seven OEMs and six of the ten OEMs are customers of the company's Horizon Pilot. The bank continued that the company's revenue from 2024 to 2026 is expected to be 2.3/34/5.9 billion yuan respectively, a year-on-year increase of 46%/51%/75%, and the net profit will be 2.9/-14/06 billion yuan. According to the PS valuation method, the company is given a target price of 5.03 HKD, corresponding to PS18X in 2025. Covered for the first time, giving Horizon Robot an "overweight" rating.