Key Takeaways:
Horizon Robotics (09660.HK) said it expects to report a net profit of between RMB3.5 billion and RMB4 billion for the first half of 2026, swinging from a loss of RMB5.23 billion a year earlier, as fair value gains on a convertible loan issued to Volkswagen's software unit CARIAD offset widening operating losses.
The Beijing-based autonomous driving chip maker attributed the turnaround primarily to fair value changes on the CARIAD convertible loan, which are tied to movements in its own stock price. On a non-IFRS basis, the company expects an adjusted net loss of RMB1.4 billion to RMB1.7 billion, wider than the RMB1.33 billion loss recorded in the same period last year.
Revenue and gross profit from continuing operations rose sharply, driven by growth in Product Solutions — including its urban navigation-on-autopilot (NOA) system HSD — and Licenses and Services, where the company licenses its BPU architecture and AI foundation models under an Arm-and-Android-style model. The company said its market share expanded as automakers adopted its full-scenario NOA solution for mass-production vehicles.
Horizon Robotics shares rose 5.9% on Tuesday in Hong Kong, giving the company a market capitalization of about HK$63.5 billion. Short selling accounted for 26.1% of trading volume before the announcement, suggesting potential short-squeeze pressure. The stock carries a consensus Buy rating with a price target of HK$7.80, according to TipRanks data.
The headline profit swing masks a widening adjusted loss from operations, underscoring the gap between accounting gains and underlying business performance. The company cautioned that the figures are preliminary and unaudited, and final interim results may differ. Investors will watch for further details on revenue growth rates and margin trends when the full interim report is published.
This article is for informational purposes only and does not constitute investment advice.
