Understanding the Market | HORIZONROBOT-W rises over 7% to reach a new high as the company reaches a strategic cooperation with Hello to accelerate the commercialization process of Robotaxi

HORIZONROBOT-W rose over 7% in early trading, reaching a high of HKD 11.32, setting a new record since its listing. As of the time of writing, it is up 4.78%, trading at HKD 10.95, with a transaction volume of HKD 1.241 billion. On the news front, on September 11, HORIZONROBOT officially signed a strategic cooperation agreement with Hello, where both parties will develop an end-to-end L4 autonomous driving core system based on robotaxi operational needs, accelerating the urban deployment and commercialization of robotaxis. Notably, with the cooperation with Hello Robotaxi, HORIZON's intelligent driving technology platform has also achieved full scene coverage from L2 to L4. China Merchants Securities pointed out that considering HORIZON's advanced HSD is expected to enter mass production in the second half of 2025, it is anticipated that the ASP of the company's automotive product solutions will rise accordingly in the second half of 2025, and new products are expected to drive an increase in the number of licensing and service contracts; considering that the expansion of overseas customers has begun to show results, it is expected that the number of licensing and service contracts from overseas will significantly increase in 2026; considering the rapid iteration of autonomous driving models, it is expected that the company will significantly increase R&D expenses to maintain market competitiveness