In a research report issued on May 8, Daiwa Capital Markets revised its outlook for Horizon Robotics (09660.HK), predicting that the company will deliver over 4 million Advanced Driver Assistance Systems (ADAS) chips this year. This figure represents a substantial leap from the 2.9 million chips delivered in 2022. The breakdown of shipments includes an estimated 1.9 million Horizon Mono chips and 1.9 million Horizon Pilot chips, with an additional 40,000 units of the high-end Horizon SuperDrive model. The report highlights that the dual factors of increased shipment volume and higher prices for the Horizon Pilot chips will serve as the primary catalysts for Horizon Robotics' revenue growth in 2023.

Daiwa maintained its "buy" rating on Horizon Robotics and elevated its target price from HK$6.5 to HK$9.6. Despite adjusting its net profit forecasts for the years 2026 to 2027 downwards by 28% to 57%, primarily due to an anticipated 6 to 7 percentage point reduction in the revenue share from licensing and service business compared to earlier projections, Daiwa remains upbeat about the trajectory of the smart car industry. The analyst firm believes that while the Xiaomi SU7 incident has led to a more prudent approach towards ADAS in the Chinese automotive sector, the momentum behind the development of smart vehicles remains robust.