NORTHEAST SECURITIES·2026-02-11 07:31Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][6]. Core Insights - The company has established a strong competitive moat in L4 autonomous driving through technology, licensing, mass production capabilities, and operational efficiency. It has developed the WeRide One platform, which integrates AI models, software algorithms, modular hardware design, and cloud architecture, enhancing scalability and versatility [1][28]. - The company has achieved significant milestones in licensing, having obtained autonomous driving licenses in eight countries, including China, UAE, Singapore, France, the USA, Saudi Arabia, Belgium, and Switzerland, positioning it as an industry leader [1][36]. - As of January 12, 2026, the company's global Robotaxi fleet reached 1,023 vehicles, with a target of deploying tens of thousands by 2030 [1][41]. Summary by Sections Company Overview - The company, WeRide, was founded in 2017 and is the only technology firm with autonomous driving licenses in eight countries. It focuses on developing safe and reliable autonomous driving technologies across various applications, including Robotaxi, Robobus, Robovan, and Robosweeper [16]. Technology and R&D - The company emphasizes R&D, with a high proportion of its workforce dedicated to it. As of June 30, 2025, 93.7% of its full-time employees are R&D personnel, including top AI scientists and engineers [28]. - The WeRide GENESIS simulation model significantly enhances the efficiency and capability of autonomous driving algorithms, reducing the time and cost of traditional road testing [31][32]. Licensing and Market Presence - The company has a clear advantage in licensing, having secured multiple licenses in various cities, including Shanghai and Abu Dhabi, where it has commenced fully autonomous operations [2][39]. - The company has successfully launched its Robotaxi services in major cities, including Beijing, Guangzhou, and Abu Dhabi, with plans to expand further [2][45]. Financial Projections - The company forecasts net losses of CNY 1.69 billion, CNY 1.37 billion, and CNY 1.10 billion for the years 2025, 2026, and 2027, respectively, with expected EPS of -CNY 1.65, -CNY 1.33, and -CNY 1.07 [3][5]. Market Strategy - The company is focused on both domestic and international markets, with a robust strategy for global expansion, particularly in the Middle East, where it has established a significant presence [2][82]. - The company aims to achieve single-vehicle breakeven in Abu Dhabi, indicating a viable business model for its Robotaxi services [54][86].