Goldman Sachs noted in a research report released on December 23, 2024, that Horizon Robotics (09660) Journey 6 series chips cover a wide range of computing power from 10TOPS to 560TOPS, with plans to first mass-produce the 80-128TOPS J6E/J6M chips in 2025, followed by the J6P/J6B chips in 2026. Since its launch in April 2024, this series of products has garnered interest from 10 potential clients including SAIC, BAIC, Li Auto, and Guangzhou Automobile Group. Goldman Sachs expects revenue contributions from the Journey 6 series to begin in 2025 and holds a bullish outlook on the specifications upgrade for Advanced Driver-Assistance Systems (ADAS) / Autonomous Driving Systems (ADS), believing it will enhance driving capabilities.
Goldman Sachs believes the smart driving chip market is at a rapid development stage, with more new models beginning to adopt more powerful smart driving chips to enhance autonomous driving functions and vehicle intelligence levels. As competition among electric vehicles (EVs) intensifies, auto manufacturers are differentiating new models by enhancing technology content and autonomous driving capabilities. Goldman Sachs expects Horizon Robotics to transition from the Journey 3/5 series to the more powerful Journey 6 series, thereby becoming a major beneficiary of this trend. In addition, Goldman Sachs pointed out that as the smart driving chip market continues to mature, competition within the industry will become increasingly fierce, requiring companies to continually innovate and enhance product performance to maintain market competitiveness.
Goldman Sachs expects Horizon Robotics' revenues will reach 3.705 billion RMB and 5.646 billion RMB in 2025 and 2026 respectively, setting its 12-month Target Price at HKD 6.1 while maintaining a Buy rating. This Target Price has an upside potential of 83.2% compared to the current share price, demonstrating Goldman Sachs' strong confidence in Horizon Robotics' future performance growth and its bullish outlook on the prospects in the smart driving chip field.
