The analyst rating for HORIZONROBOT-W (09660.HK) is maintained at Overweight due to several key factors:
1. Revenue Growth: The company reported a 51% year-over-year revenue growth to RMB2.19 billion in 2H25, which exceeded market expectations.
2. Improved Revenue Forecasts: CMSI raised its revenue forecasts for 2026 and 2027 by 9% and 10%, respectively, indicating confidence in the company's future performance, particularly due to an improved product mix with a higher volume of high-end products.
3. Target Price Adjustment: The target price was set at $13.8, reflecting a projected 2026 price-to-sales (PS) ratio of 25.5x, which is more aligned with the average valuation of peers in the intelligent driving supply chain.
4. Market Conditions: The rating adjustment also considers the broader market style shifts that have led to lower valuations in the intelligent driving supply chain, suggesting that the company is positioned well within its sector despite current challenges.
Overall, the combination of strong revenue growth, improved forecasts, and alignment with peer valuations supports the Overweight rating.
