Key Takeaways:
UBS gave Horizon Robotics-W (09660.HK) a "Buy" rating and a HKD 13.2 target price after the company launched three new automotive AI solutions.
The bank expects a positive market response to the launch, highlighting the maturity and appeal of the new cockpit-driving integrated chip, which has already secured more than ten partners.
At its annual launch event, Horizon unveiled the HSD V1.6 smart driving solution, the KaKaClaw automotive operating system, and the Starry 6 chip. The Starry 6, built on a 5-nanometer process, offers 650 TOPS of computing power and can save automakers between RMB 1,500 and RMB 4,000 per vehicle, according to a CLSA report. CLSA maintained its "Outperform" rating and HKD 11 price target.
The product launch is part of Horizon's broader strategic shift into an automotive AI Agent solutions provider. The company aims to build an operating system platform by using its expertise in system-on-chip design, autonomous driving solutions, and edge AI models, a move UBS believes will strengthen its market position.
The new strategy and product lineup position Horizon to better compete in the integrated automotive AI market. Investors will now watch for the launch of HSD V2.0 later this year, which is expected to feature more human-like autonomous driving capabilities.
This article is for informational purposes only and does not constitute investment advice.
