Horizon Robotics Class B: Strong ADAS Leadership and SuperDrive Pipeline Underpin Buy Rating and >50% Growth Outlook

Analyst Raphael Wut Hei of DBS maintained a Buy rating on Horizon Robotics Class B, retaining the price target of HK$11.00.

Raphael Wut Hei has given his Buy rating due to a combination of factors that support a robust growth outlook for Horizon Robotics Class B. He expects the company to hit its 2025 shipment target of around 4 million units, driving revenue growth of over 50% year-on-year, underpinned by a strong order backlog and Horizon’s position as a leading provider of autonomous driving chips in China. Despite a slight downward adjustment to near-term revenue forecasts to reflect a slower ramp-up of the high-end SuperDrive solution, he sees this as a timing issue rather than a structural concern.

Raphael also highlights the company’s progress in its high-end SuperDrive platform, with more than 20 order wins from new OEM customers and mass deliveries projected to start from mid-2026, which should meaningfully lift revenue in the second half of that year. He notes that upcoming products, including an integrated cockpit-driving chip with very high computing power, are well aligned with rising demand for more advanced autonomous driving capabilities and should reinforce Horizon’s competitive edge. While he factors in higher R&D spending to support this pipeline, he believes the incremental costs are justified by the long-term growth potential. In addition, he assesses that potential competition from BYD’s in-house ADAS chips is unlikely to materially affect Horizon’s earnings before 2027 or derail the growth of its premium SuperDrive offering, supporting a Buy rating with a target price of HKD11.