Horizon Robotics (SEHK:9660) Heavy C¥5.2b Loss Tests Bullish Profitability Narratives

Horizon Robotics (SEHK:9660) has reported FY 2025 first half results with revenue of C¥1.6b and a basic EPS loss of C¥0.42, setting a clear focus on how growth is feeding through to the bottom line. The company has seen revenue move from C¥934.6m in 1H 2024 to C¥1.4b in 2H 2024 and C¥1.6b in 1H 2025, while EPS has swung from a loss of C¥1.81 in 1H 2024 to a profit of C¥1.17 in 2H 2024 before reverting to a loss, so investors are watching how quickly these top line gains can translate into more consistent margins.

See our full analysis for Horizon Robotics.

With the latest figures on the table, the next step is to set these results against the most common narratives around Horizon Robotics to see which views are supported by the numbers and which are being challenged by the current margin profile.

Curious how numbers become stories that shape markets? Explore Community Narratives

Losses Remain Heavy At Over C¥5.2b

• For 1H 2025, Horizon Robotics reported net income excluding extra items of a C¥5,232.9m loss, compared with a C¥7,444.7m profit in 2H 2024 and a C¥5,098.1m loss in 1H 2024, so the bottom line is still deep in loss territory over the latest half year.
• What stands out for the bullish view that focuses on long term earnings growth is that the trailing twelve month net income is a C¥10,469.0m loss, even though losses have narrowed at about 11.4% per year over the past five years. This means:
• Supporters who point to forecast earnings growth of 78.65% per year and a path to profitability within three years are leaning on forward expectations while current reported margins remain clearly negative.
• Critics of the bullish stance can point to the swing from a C¥7,444.7m profit in 2H 2024 back to a C¥5,232.9m loss in 1H 2025 as evidence that consistent profitability has not yet been established.

P/S Of 25.2x Prices In Strong Growth

• The shares trade on a P/S of 25.2x compared with 1.9x for the wider Hong Kong software industry and roughly in line with a 25.9x peer average, while the current share price of HK$7.34 sits below the DCF fair value estimate of HK$9.73 and below the allowed analyst price target of HK$12.20.
• Bears who argue that the valuation is demanding relative to the broader industry get some backing from the 25.2x P/S multiple. That view is partly challenged by the combination of:
• Forecast revenue growth of about 31% per year, which is higher than the 8.3% forecast for the Hong Kong market, meaning the premium multiple is tied directly to expectations of faster top line expansion.
• The share price trading about 24.5% below the HK$9.73 DCF fair value and below the HK$12.20 analyst target, which suggests some investors may be paying a growth style multiple while the stock still sits under those reference values.

On these numbers, the key question is whether you think the current premium P/S can be justified by the forecast growth profile or whether the losses on the income statement carry more weight for you, and that is exactly where broader community views can help round out the picture, Curious how numbers become stories that shape markets? Explore Community Narratives.

Revenue Near C¥1.6b Sits On A High Growth Path

• Across the last three reported half years, revenue progressed from C¥934.6m in 1H 2024 to C¥1,448.9m in 2H 2024 and C¥1,566.8m in 1H 2025, and the trailing twelve month figure stands at C¥3,758.3m alongside a forecast revenue growth rate of about 31% per year.
• Supporters with a bullish focus on Horizon Robotics as a China ADAS and autonomous driving platform often highlight long run demand for intelligent vehicles, and the revenue track together with the forecast growth rate interacts with that view in a few important ways:
• The move from C¥934.6m to C¥1,566.8m across three consecutive half year periods and the C¥3,758.3m trailing twelve month revenue give bulls concrete top line scale to point to when they talk about penetration of intelligent driving solutions.
• At the same time, the fact that this revenue base still sits alongside a C¥10,469.0m trailing twelve month loss means any bullish thesis that centers only on growth without addressing profitability is not fully aligned with the reported financials.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Horizon Robotics's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

If this mix of losses and growth leaves you unsure, that is the point. The full picture only comes from checking the balance of risks and rewards yourself. To see what is currently exciting some investors about the upside case, start with the 3 key rewards.

See What Else Is Out There

Horizon Robotics combines a premium 25.2x P/S multiple with heavy C¥5.2b half year and C¥10.5b trailing losses, so profitability and valuation risk remain clear.

If that mix of deep losses and a rich sales multiple makes you cautious, it can help to balance your watchlist with companies screened for 290 resilient stocks with low risk scores.

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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