Horizon Robotics (SEHK:9660) Valuation Check As Automotive AI Growth Fuels Earnings Expectations

Horizon Robotics (SEHK:9660) is back in focus as investors weigh very strong recent automotive AI revenue growth in relation to expectations for the 23 March 2026 earnings release and potential new OEM design wins in China.

See our latest analysis for Horizon Robotics.

At the latest share price of HK$8.21, Horizon Robotics has seen short term share price pressure, with a 7 day return of 7.75% and year to date share price return of 8.68%. The 1 year total shareholder return of 1.08% points to a relatively milder pullback when dividends are included, suggesting momentum has cooled recently even as expectations build around automotive AI growth and the upcoming March earnings release.

If the focus on automotive AI is on your radar, this could be a good moment to widen your search and review 61 profitable AI stocks that aren't just burning cash as potential next ideas.

With HK$3,015.711 million in revenue, HK$2,211.789 million in net income and a value score of 1, the question is whether Horizon Robotics is still on sale or if the market already reflects its future growth story in the current price.

Preferred P/E of 47.7x: Is it justified?

Horizon Robotics is trading on a P/E of 47.7x, which puts a rich price on each unit of current earnings compared to several benchmarks and peers.

The P/E ratio tells you how many Hong Kong dollars investors are currently paying for each dollar of earnings. It tends to be watched closely for higher growth software names. A higher P/E often signals that the market is pricing in strong future earnings expansion, but it can also mean expectations have moved well ahead of the underlying business.

For Horizon Robotics, the current 47.7x P/E sits well above the estimated fair P/E of 27.4x that our analysis suggests the market could move toward over time. It is also higher than the Asian Software industry average P/E of 23.2x, as well as the peer group average of 33.5x. This implies investors are paying a premium not just to the wider sector but also to closer comparables.

Explore the SWS fair ratio for Horizon Robotics

Result: Price-to-Earnings of 47.7x (OVERVALUED)

However, you should also weigh risks such as any slowdown in automotive solutions demand or delays in converting new OEM discussions into concrete design wins.

Find out about the key risks to this Horizon Robotics narrative.

Another angle from our DCF model

While the 47.7x P/E already looks demanding, our DCF model goes further and points to a fair value of HK$3.34 per share, compared to the current HK$8.21. That suggests the price reflects a high level of anticipated future success. If growth changes or slows at all, that could have implications for investors.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Horizon Robotics for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 218 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of caution and optimism around Horizon Robotics resonates with you, take a moment to look through the numbers yourself and decide how comfortable you are with the current setup, then weigh both sides using our breakdown of 3 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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