Horizon Robotics’ 1H26 gross profit margin is expected to reach 65%, with three major catalysts driving mean reversion (CITI)
Citi gives Horizon Robot (9660.HK) a Buy/High Risk rating.
Citi gives Horizon Robot (9660.HK) a Buy/High Risk rating. Its 1H26 revenue is expected to grow by more than 34% year-on-year, with gross profit margin reaching a range of 65%-66%. The report points out three core growth catalysts: L3/L4 autonomous driving technology cooperation, BYD’s market share increase, and Nvidia’s share loss. The market's pessimistic expectations that Horizon may continue to suffer losses and intensify competition may be excessive, ignoring that its advantages in technology, customers, and costs are gradually emerging. One-sentence conclusion: Citi believes that Horizon Robotics has extremely high upside potential, its gross profit margin performance exceeds expectations, and the three major catalysts all point to an increase in market share and profitability. There is significant room for repair in the market's pessimistic expectations. Positive/negative: Positive for Horizon Robotics (9660.HK). The current stock price may have digested most of the negative expectations, but it has not yet fully reflected the positive impact that its gross margin improvement and three major catalysts may bring. Catalysts: 1) 1H26 official financial report released to verify gross profit margin forecast; 2) Announcement of L3/L4 autonomous driving cooperation project; 3) Announcement of increased order share from BYD and other customers.