Horizon Robotics Class B (9660) has received a new Buy rating, initiated by DBS analyst, Dennis Lam.
Dennis Lam has given his Buy rating due to a combination of factors that highlight Horizon Robotics’ strong market position and growth potential. The company is a leading provider of advanced driver-assistance systems (ADAS) and autonomous driving (AD) solutions in China, holding a significant market share in the domestic electric vehicle (EV) sector. This leadership is supported by its unique open platform model, which offers flexibility to original equipment manufacturers (OEMs) and a cost-effective alternative compared to competitors like Huawei and Mobileye.
Additionally, Dennis Lam anticipates a robust revenue growth trajectory for Horizon Robotics, projecting a 45% compound annual growth rate (CAGR) from fiscal year 2024 to 2027. This growth is expected to be driven by the increasing penetration of AD technology and the launch of the high-end Horizon Superdrive solution. The company’s strategic expansion from mass-market to high-end segments and its strong partnerships with top OEMs like BYD further bolster its growth prospects. These factors, combined with the potential for adjusted earnings to break even by fiscal year 2027, underpin the Buy rating with a target price of HKD 10.4.