Investment Rating - The report initiates coverage with a "Buy" rating for Horizon Robotics [4][44]. Core Views - Horizon Robotics is positioned as a rare player in the domestic market, offering comprehensive intelligent driving solutions across all levels and scenarios, with significant growth potential anticipated [1][4]. - The company is expected to achieve revenues of 22.61 billion, 33.99 billion, and 57.32 billion yuan from 2024 to 2026, with net profits projected at -67.9 billion, -62.7 billion, and -44.6 billion yuan respectively [4][42]. Summary by Sections Company Overview - Horizon Robotics was established in 2015 and launched its first generation of automotive processing hardware, "Journey," in 2017. By 2020, it began equipping mass-produced vehicles from manufacturers like Changan and Li Auto. The new "Journey 6" series and Horizon SuperDrive solutions are set to be released in 2024, with cumulative shipments of the Journey series expected to reach 7 million by the end of 2024 [1][11]. Market Dynamics - The penetration rate of ADAS+AD solutions in China reached 57.1% in 2023, with projections indicating it could exceed 80% by 2027, driven by a compound annual growth rate of 48% [9][25]. - The report highlights the significance of the NOA function as a turning point for mid-to-high-level intelligent driving, with expectations for its configuration to become more accessible across various vehicle price segments [25][30]. Competitive Landscape - Horizon Robotics holds a leading position in the ADAS market, with a market share of 35.9% as of the first half of 2024, indicating a growing dominance among domestic solution providers [33]. - The company boasts a full-stack technology capability, which is considered a competitive moat, allowing it to offer comprehensive solutions from hardware to software [38]. Financial Performance - In the first half of 2024, Horizon Robotics reported revenues of 9.35 billion yuan, a year-on-year increase of 151.6%, with a gross margin of 79.0% [18][20]. - The automotive solutions segment generated 9.13 billion yuan in revenue during the same period, reflecting a 164.66% increase year-on-year, while the non-automotive solutions segment saw a decline [18][20]. Future Outlook - The company is expected to see substantial revenue growth in its automotive solutions segment, particularly with the anticipated mass production of the J6 series chips starting in 2025 [42][44]. - Revenue projections for 2024-2026 indicate significant growth, with automotive solutions expected to contribute the majority of income [42][44].
地平线机器人-W：国产智能驾驶全能选手，成长空间可期-20250303