Hong Kong robotics stocks surged in afternoon trading. Shanghai MicroPort MedBot rose 16%; Horizon Robotics rose 11%; Robosense rose 6%; Cowell rose 5%.

Chinese manufacturers planning to achieve mass production of hundreds to thousands of units by 2025. As China advances in technology upgrades, localization of equipment, and large-scale production, the manufacturing cost of humanoid robots is expected to decline significantly.

The report highlighted that aside from the "brain" (i.e., chips), which still relies on high-end foreign AI chips, nearly all other humanoid robot components can be produced domestically in China.

Additionally, Morgan Stanley emphasized that cost reduction is a key priority for Chinese humanoid robot industry players, with scalability, automation, and increased production volume being critical factors in driving costs down.

On another note, on February 21, Hang Seng Indexes Company announced its latest quarterly review results, with Horizon Robotics being included in the Hang Seng TECH Index. The adjustment will take effect on March 10, 2025.

Goldman Sachs released a research report stating that Horizon’s inclusion in the Hang Seng TECH Index is expected to support further valuation re-ratings. The target price has been raised from HK$7.9 to HK$11.77, with a “Buy” rating.

Goldman Sachs noted that Horizon’s "Journey 6" series is set to benefit from the growing trend of intelligent driving in mainland China, led by BYD. This is expected to drive upgrades in Horizon’s product portfolio (from ADAS to intelligent driving solutions) and enhance customer diversification.

Earlier, BYD announced plans to significantly expand the adoption of intelligent driving in its future models, equipping key models with Horizon’s 128 TOPS J6M intelligent driving chip alongside Nvidia’s Orin-N. This suggests that Horizon’s sales could see substantial growth.