EB Securities: Maintaining a "buy" rating on HORIZONROBOT-W (09660) Hardware architecture optimization + full-stack algorithm services empowerment.

EB SECURITIES released a research report maintaining a "buy" rating on HORIZONROBOT-W(09660). The company announced several important developments at the conference, including the mass production of the high-level assisted driving system "HSD", with an activation volume surpassing 12,000 vehicles in just two weeks. There is potential to bring the urban NOA function down to the market for vehicles priced at 100,000 yuan. The company's overseas market expansion has shown initial results, with the proportion of shipments of medium to high-level products expected to continue to increase. The launch of J6P+HSD is expected to further increase the company's product ASP and brand strength. EB SECURITIES' key views are as follows: Event The company held the "2025 Horizon Technology Ecological Conference" in Shenzhen on December 8-9, 2025. The conference's theme was "Towards High Peers", with the main and sub-forums covering topics such as full-scene auxiliary driving, intelligent car open collaboration, and the commercialization of full-domain automated driving, as well as the technological leap from intelligent cars to Siasun Robot & Automation in various segments. Mass production of the high-level assisted driving system "HSD", urban NOA expected to reach the 100,000 yuan car market HSD's mass production and activation volume surpassing 10,000 vehicles in two weeks. In 2025, the Chery Startrail ET5 was launched with the Horizon 560 TOPS chip + HSD urban assisted driving system. HSD uses a one-piece end-to-end + VLM architecture, achieving millisecond-level latency and "human-like thinking" defensive driving. The company's founder and CEO, Yu Kai, announced at the conference that the Deepblue L06 and Chery Startrail ET5 equipped with the company's HSD assisted driving system had an activation volume exceeding 12,000 vehicles within two weeks of launch. The high-cost-effective urban NOA solution is expected to benefit vehicles priced at 100,000 yuan. Based on the distribution of passenger car transaction prices in China from 25Q1 to 25Q3, passenger cars priced below 130,000 yuan account for 50%. Currently, HSD has successfully entered the 130,000 to 200,000 yuan range of vehicle models. The urban NOA solution based on a single J6M chip is about to enter mass production and is expected to benefit the national car market priced at 100,000 yuan. The first batch of partners include Bosch, Autocruise, and Light Boat Intelligence. According to the video displayed at the conference, the HSD solution based on a single J6M chip achieved smooth no-protected left turns, narrow road negotiations, and construction bypasses in complex road sections in Shenzhen's Huaqiang Industry North. "HSDTogether" full-stack algorithm service model empowerment, potential for J6 shipments to further accelerate Different from the traditional delivery model of "chip + reference algorithm", HSDTogether opens up HSD as a validated "showroom" to partners (white-box & black-box authorization), providing "algorithm services" covering the full cycle of product development, including data services and Eddie SaaS platform, professional algorithm adaptation engineering and consulting services, and the most core authorization of base models. Partners can focus on system integration testing, vehicle model adaptation development, and other advantages, significantly reducing manpower, computing power, and time costs. It took 36/24/12 months for J3/J5/J6 chips to achieve shipments of one million pieces respectively. With the empowerment of HSD algorithms sinking the urban NOA to the 100,000-yuan car market, shipments of J6 series chips are expected to accelerate further. Release of the new "Riemann" BPU architecture, J7 aims to benchmark Tesla's AI5 chip Compared to the previous generation, the "Riemann" architecture has improved key operator performance by 10 times, with high-precision operator support increased by 10 times. Efficiency for LLM has increased by 5 times. The J7 series chip, equipped with the Riemann architecture, aims to benchmark Tesla's next-generation AI5 chip. At the same time, the fourth-generation compiler "SkyWorks" was released, introducing AI-driven optimization strategies, increasing the compilation speed from hours to minutes, and improving model performance by 20%. Open-source embodiment smart brain & cerebellum models to build Siasun Robot & Automation ecosystem The company's Siasun Robot & Automation has more than 100 listed products, connects over 100 upstream and downstream partners, and over 100,000 developers. The conference officially released two major embodiment intelligence open-source models: the embodiment intelligence cerebellum base model HoloMotion and the embodiment intelligence brain base model HoloBrain. HoloMotion is now open source on GitHub and has been used by institutions such as Stanford and Tsinghua. Risk Warning Demand for smart cars falls short of expectations; ADAS and AD penetration rates fall short of expectations; competition intensifies in the smart driving chip sector; risk of fluctuation in the stock price of new shares.