| Valuation method | Value, HK$ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 92.70 | 1026 |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Beijing Horizon Information Technology Co., Ltd. (9660.HK) is a leading Chinese technology company specializing in smart driving solutions for passenger vehicles. Founded in 2015 and headquartered in Beijing, the company develops proprietary software and hardware technologies that power advanced driver assistance systems (ADAS) and autonomous driving capabilities. Operating in the rapidly growing automotive technology sector, Horizon leverages its expertise in artificial intelligence, computer vision, and semiconductor design to create integrated solutions for vehicle manufacturers. As China pushes toward automotive innovation and electrification, Horizon positions itself at the intersection of automotive and technology industries, serving the massive Chinese automotive market while expanding globally. The company's comprehensive approach combines edge AI computing, perception algorithms, and decision-making platforms to enable next-generation mobility solutions. With strong backing from parent company HNA Ecotech Panorama Cayman Co. Ltd., Horizon is well-positioned to capitalize on the global transition toward smarter, safer vehicles.
Beijing Horizon presents a compelling investment opportunity in the rapidly evolving autonomous driving technology space, though with significant risks. The company operates in a high-growth market with strong tailwinds from China's push toward automotive technological leadership and electrification. With a market capitalization of approximately HKD 119.6 billion, the company shows impressive revenue of HKD 2.38 billion and remarkable net income of HKD 2.35 billion, suggesting strong profitability in its niche. However, the negative EPS of -0.16 HKD and substantial capital expenditures of HKD -534.7 million indicate significant ongoing investments that may pressure short-term profitability. The company maintains a strong cash position of HKD 15.37 billion against debt of HKD 6.94 billion, providing financial flexibility. The extremely low beta of 0.01 suggests minimal correlation with broader market movements, which could be both a strength and weakness. Investors should monitor the company's ability to maintain technological leadership against well-funded global competitors and navigate the complex regulatory environment for autonomous driving technologies.
Beijing Horizon competes in the highly competitive automotive technology sector, specifically in the autonomous driving and ADAS space. The company's competitive advantage stems from its vertically integrated approach, developing both proprietary hardware (AI chips) and software (perception and decision-making algorithms) specifically optimized for automotive applications. This integrated stack allows for better performance optimization compared to competitors who may specialize in only one aspect of the technology. Horizon's deep roots in China provide significant advantages in understanding local market needs, regulatory requirements, and establishing relationships with Chinese automakers who represent the world's largest automotive market. The company's focus on edge computing solutions rather than cloud-dependent approaches addresses latency and reliability concerns critical for safety applications. However, Horizon faces intense competition from well-established semiconductor giants and well-funded startups globally. The company must continuously innovate to maintain its technological edge while scaling production to achieve cost competitiveness. Its affiliation with HNA provides financial backing but may also create corporate structure complexities. The regulatory environment for autonomous driving remains uncertain globally, particularly regarding data security and cross-border technology transfer, which could impact Horizon's international expansion ambitions. The company's success will depend on its ability to forge partnerships with major automakers beyond China while navigating increasing geopolitical tensions affecting technology exports.