Horizon Robotics Class B (9660) AI Stock Analysis

• Market Cap: HK$120.59B
• Dividend Yield: N/A
• Average Volume (3M): 238.60M
• Price to Earnings (P/E): 38.6
• Beta (1Y): 1.82
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 2,078
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 12,527,496,000
• 10 Day Avg. Volume: 157,820,181
• 30 Day Avg. Volume: 238,603,909
• PEG Ratio: -0.03
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 6.49
• P/FCF Ratio: -17.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$12.32
• Price Target Upside: 52.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$8.50 ▲(5.07% Upside)

Horizon Robotics Class B's overall stock score is primarily influenced by its financial performance and technical analysis. While there are signs of financial improvement, the stock's technical indicators suggest bearish momentum. The high P/E ratio indicates potential overvaluation, further impacting the overall score.

Positive Factors

Revenue Growth

A 53.6% revenue increase indicates accelerating demand for Horizon Robotics' AI compute and software in automotive and edge markets. Sustained top-line growth supports scale economies, funds R&D and commercialization, and strengthens customer validation and long-term competitive positioning.

Return to Profitability

Reaching profitability and a positive EBITDA margin signals improving unit economics and operational leverage. Durable profitability reduces reliance on external financing, enables reinvestment in product development and go-to-market, and improves the firm's ability to execute strategic plans over the medium term.

Improving Operating Cash Flow

A positive shift in operating cash flow and cash conversion improvement reflect stronger cash generation from core operations. This enhances liquidity and funding for working capital and R&D, lowering short-term financing needs and supporting sustainable business operations over several quarters.

Negative Factors

Balance Sheet Leverage Risk

Legacy negative equity and historically high leverage increase refinancing and solvency risk. Although equity turned positive, prior liabilities could constrain strategic flexibility, raise interest burden, and limit capacity to absorb shocks, making balance sheet stability a medium-term concern.

Negative Free Cash Flow

Persistent negative free cash flow implies ongoing external funding needs to support growth and capex. Even with improvement, continued FCF deficits can pressure strategic investments, limit optionality for M&A or dividends, and increase vulnerability to capital market volatility over the medium term.

Historical Operating Losses and Margin Volatility

A history of negative EBIT margins and large losses points to prior operational inefficiencies and market execution risk. Recent profit is encouraging, but margin durability is unproven; reversion risk remains if revenue growth slows or R&D and SG&A needs rise, impacting multi-quarter stability.

Horizon Robotics Class B Business Overview & Revenue Model

Company Description

Horizon Robotics, an investment holding company, provides automotive solutions for passenger vehicles in China. The company operates in two segments, Automotive Solutions and Non-Automotive Solutions. It offers Horizon Mono, an advanced driver assistance system solution; Horizon Pilot, a driving and parking solution that enables highway pilot assisted driving, automated parking assist, and highway navigation on autopilot; Horizon SuperDrive, an autonomous driving and parking solution; and Horizon Journey, an automotive grade product for energy solutions. The company also provides non-automotive solutions that enable device manufacturers to design and manufacture devices and appliances. Horizon Robotics was founded in 2015 and is headquartered in Beijing, China.

How the Company Makes Money

Horizon Robotics generates revenue through multiple key streams including the sale of AI chips and software licenses to manufacturers in the automotive and robotics sectors. The company partners with major automotive firms and tech companies to integrate its technology into their products, providing a continuous revenue flow through product sales and royalties. Additionally, Horizon Robotics offers consultancy and customization services for businesses looking to implement AI-driven solutions, further diversifying its income sources. The growing demand for automation and smart technology in various industries also contributes significantly to its earnings.

Horizon Robotics Class B Financial Statement Overview

Summary

Horizon Robotics Class B shows promising signs of financial improvement with revenue growth and a return to profitability in 2024. However, challenges remain with balance sheet stability and cash flow management, as the company transitions from negative to positive equity.

Income Statement

Horizon Robotics Class B has shown a significant improvement in total revenue, growing by 53.6% from 2023 to 2024. However, the company is still facing substantial challenges with a negative EBIT margin and a high net income loss in previous years, though it turned profitable in 2024. The EBITDA margin in 2024 is positive, indicating improvement in operational efficiencies.

Balance Sheet

The company's balance sheet reveals a challenging financial structure with a high debt-to-equity ratio in previous years due to negative equity, though it improved to a positive equity in 2024. The equity ratio stands at 58.5% in 2024, showing a better asset structure. However, the financial stability is still at risk due to previous high liabilities and the transition from negative to positive equity.

Cash Flow

Horizon Robotics Class B experienced a positive shift in operating cash flow in 2024. The free cash flow remains negative, but there is a significant reduction in negative free cash flow compared to previous years. The operating cash flow to net income ratio turned positive, reflecting improved cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.25B	2.38B	1.55B	905.68M	466.72M
Gross Profit	2.24B	1.84B	1.09B	627.71M	330.99M
EBITDA	3.77B	2.80B	-6.38B	-8.42B	-1.93B
Net Income	2.46B	2.35B	-6.74B	-8.72B	-2.06B
Balance Sheet
Total Assets	25.66B	20.38B	15.87B	9.90B	10.60B
Cash, Cash Equivalents and Short-Term Investments	17.76B	15.40B	11.36B	7.81B	9.33B
Total Debt	10.36B	6.94B	6.01B	217.31M	115.51M
Total Liabilities	12.00B	8.46B	40.54B	27.33B	18.99B
Stockholders Equity	11.42B	11.91B	-24.67B	-17.44B	-8.39B
Cash Flow
Free Cash Flow	-2.79B	-894.31M	-2.20B	-2.11B	-1.34B
Operating Cash Flow	-2.28B	17.60M	-1.74B	-1.56B	-1.11B
Investing Cash Flow	-3.35B	-1.93B	-667.29M	-214.51M	-1.38B
Financing Cash Flow	10.92B	5.82B	7.22B	212.41M	6.30B

Horizon Robotics Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9660, the sentiment is Negative. The current price of 8.09 is below the 20-day moving average (MA) of 9.02, below the 50-day MA of 8.67, and above the 200-day MA of 8.03, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 35.82 is Neutral, neither overbought nor oversold. The STOCH value of 10.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9660.

Horizon Robotics Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9698	58 Neutral	HK$74.66B	75.24	5.43%	―	1.73%	―
2121	49 Neutral	HK$3.25B	-6.07	-27.20%	―	-3.78%	20.83%
6682	49 Neutral	HK$26.03B	-111.16	-3.20%	―	―	―
9660	46 Neutral	HK$120.59B	38.57	―	―	―	―
0020	41 Neutral	HK$100.10B	-23.59	-14.61%	―	17.96%	46.64%

Horizon Robotics Class B Corporate Events

Horizon Robotics Grants 12.8 Million Share Awards Under Post-IPO Incentive Plan

Horizon Robotics has granted a total of 12,796,690 awards tied to an equivalent number of new Class B ordinary shares to 178 employees under its post-IPO share incentive plan, with each grantee paying a nominal HK$1.00 upon acceptance and no purchase price for the underlying shares. The awards, granted on 15 January 2026 when the shares closed at HK$9.38, will vest in several tranches over roughly 45 to 47 months, with the first batch vesting within 12 months and no performance targets attached, though the company has set out detailed malus and clawback provisions to address misconduct, regulatory breaches, or actions harmful to the group, and confirmed no financial assistance will be provided for share acquisition, underscoring a structured but employee-friendly incentive approach that may modestly dilute existing shareholders over time while reinforcing workforce retention.

The most recent analyst rating on (HK:9660) stock is a Buy with a HK$11.00 price target. To see the full list of analyst forecasts on Horizon Robotics Class B stock, see the HK:9660 Stock Forecast page.

Horizon Robotics Engages in Connected Loan Transaction with Founder

Horizon Robotics, a company incorporated in the Cayman Islands, has entered into a loan agreement with its founder and controlling shareholder, Dr. Kai Yu. The agreement involves a loan of RMB64,026,413.93 for tax compliance purposes, with an escrow arrangement involving Class B Ordinary Shares to ensure repayment. This transaction is classified as a connected transaction under Hong Kong’s Listing Rules, requiring reporting and announcement but exempt from shareholder approval.

The most recent analyst rating on (HK:9660) stock is a Buy with a HK$11.00 price target. To see the full list of analyst forecasts on Horizon Robotics Class B stock, see the HK:9660 Stock Forecast page.