Deutsche Bank: Horizon Robotics (9660.HK) April Autonomous Driving SoC Up 33% YoY, Front Camera Chip Down 40%
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Deutsche Bank published a note on Horizon Robotics detailing mixed monthly data for April. The report highlights a significant divergence in the company's product portfolio: autonomous driving System-on-Chip (SoC) shipments surged by 33% year-over-year, while front-facing camera chip shipments experienced a sharp 40% year-over-year decline.
The robust growth in autonomous driving SoCs reflects increasing penetration rates of Advanced Driver-Assistance Systems and the successful onboarding of new automotive customers. Conversely, the severe drop in front-facing camera chip shipments likely points to ongoing inventory adjustments among certain downstream clients, creating temporary structural headwinds.
Despite the mixed performance, Deutsche Bank identifies a silver lining in this product mix shift. Autonomous driving SoCs currently account for roughly 70% of total revenue. Because these advanced SoCs carry inherently higher gross margins compared to standard front-facing camera chips, the current portfolio transition toward high-value SoCs is expected to support overall profitability improvements over the medium to long term. While short-term revenue growth might be slightly dragged down by weaker camera chip volumes, the fundamental earnings quality is improving. Deutsche Bank maintained its existing rating and earnings forecasts without changes, noting that future monitoring should focus on whether SoC growth remains resilient and when camera chip demand will eventually stabilize.
Key exhibits
Exhibit 1
