CMB International Securities analyst reiterated a Buy rating on Horizon Robotics Class B today and set a price target of HK$12.30.
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CMB International Securities has given its Buy rating due to a combination of factors that highlight Horizon Robotics’ strong market position and growth potential. The company reported impressive first-half 2025 results, with a 68% year-over-year increase in revenue driven by a significant rise in auto product solutions sales. This growth underscores Horizon Robotics’ leadership in China’s automotive technology sector, particularly in the ADAS and intelligent driving solutions markets.
Despite a slight widening of net losses due to substantial investments in research and development, the company’s gross profit margin remained robust. The firm anticipates continued growth in product solutions, supported by strong demand from major clients like BYD and Li Auto, as well as new partnerships with Japanese OEMs. Additionally, the strategic shift towards higher-value product offerings is expected to stabilize margins above 50% in the long term. These factors, combined with favorable market conditions in China, underpin CMB International Securities’ positive outlook and Buy rating for Horizon Robotics.
In another report released yesterday, CLSA also maintained a Buy rating on the stock with a HK$11.00 price target.