Jinwu Financial News | According to Guojin Securities Research Report, Horizon Robot (09660) officially entered the Hong Kong Stock Exchange on October 24, 2024. The initial price was HK$3.99 per share, and the amount raised was HK$5.407 billion.
The bank said that large-scale applications of advanced intelligent driving rely on solutions with high processing capacity, high reliability, low latency, low energy consumption, and high cost performance. Therefore, advanced intelligent driving solutions require software and hardware co-design to achieve the necessary system-level performance-level reliability. In terms of hardware, the company has already mass-produced the Journey 2, Journey 3, and Journey 5 chips, and the upcoming mass production of the Journey 6 chip family, which is suitable for different application scenarios. In terms of algorithms, the company provides a series of software and algorithm solutions for low-level to advanced intelligent driving, named Horizon Mono, Horizon Pilot, and Horizon Super Drive respectively. In terms of ecology, the company has connected more than 100 upstream and downstream industry partners, including software and hardware Tier 1, ODM, IDH, chips, graphics, sensors, etc. In terms of business model, the company aims to create the most open business model in the industry, providing cooperation models at different levels, from BPU architectures, chips, operating systems to autonomous driving software algorithms and hardware. In terms of joint venture cooperation, in October 2022, Horizon reached a strategic cooperation with Volkswagen. Volkswagen's CARIAD will invest in Horizon and establish a joint venture with the company. In November 2023, the joint venture Core Range was formally established, and Volkswagen holds 60% of the shares. In the first half of 2024, the company generated revenue of 0.351 billion yuan by providing automotive solutions to Core, accounting for 37.6% of revenue.
The bank predicts that the company will achieve revenue of 2.867/5.105/8.629 billion yuan in 2024/2025/2026, respectively. Based on the closing price on October 25, 2024, PS is 16.6/9.3/5.5 times, respectively. The company's business is similar to companies such as Nvidia, Mobileye, Black Sesame, etc., involving chip design or autonomous driving solutions, so it is set up as a comparable company. As can be seen in the comparison, Horizon 2024-2026 PS is slightly lower than the average of comparable companies. As an industry leader, the company also rapidly exploded in the smart driving chip market and a clear trend of domestic substitution. It gave 2025 an 11-times PS, a target price of HK$4.7, for the first time coverage, and a “gain” rating.
