Investment Highlights - The company, WeRide, established in 2017, is a leading L4 autonomous driving company with a diverse product line including Robotaxi, Robobus, Robovan, and Robosweeper, alongside L2+ driver assistance services. As of Q3 2025, the total revenue reached 171 million yuan, a year-on-year increase of 144%, with Robotaxi business being the core growth driver, contributing approximately 35.3 million yuan, a staggering increase of 761.0% year-on-year, accounting for 20.7% of total revenue. The gross margin stood at 32.9%, with a net loss of 307.3 million yuan. As of September 30, 2025, cash and capital reserves amounted to 5.4 billion yuan, supporting R&D investments and scaling expansion for long-term competitiveness [3][4]. L4 Industry Overview - The company is the only entity globally to have obtained autonomous driving licenses in eight countries. In China, it has achieved fully unmanned commercial operations in Beijing and Guangzhou, with each Robotaxi completing up to 25 rides per day during operational hours. The company has also received qualifications for unmanned demonstration applications in Shanghai [4][5]. - The Robotaxi business is accelerating towards a commercial turning point, with a clear path to profitability. The integration of end-to-end architecture and advanced technologies has significantly improved safety and reduced accident rates compared to human drivers. The BOM cost has decreased from over 1 million yuan to below 300,000 yuan, with ongoing optimization of the unit economic model [5][30]. - The market for Robotaxi in China is expected to reach 200 billion yuan by 2030, with the potential to replace parts of the traditional and private transportation markets. The theoretical reach of Robotaxi in developed and underdeveloped regions is estimated to be 4.4 and 3.4 times that of the Chinese market, respectively [5][41][45]. Company Analysis - WeRide is positioned as a technology leader in the Robotaxi sector, benefiting from gradual policy openings, continuous breakthroughs in autonomous driving technology, and cost reductions in the supply chain. Revenue projections for 2025-2027 are 555 million, 945 million, and 1.987 billion yuan, respectively, with corresponding price-to-sales ratios of 43.0, 25.2, and 12.0 times [7]. - The company has established a solid equity structure with significant investments from industry players, including Nvidia and major automotive companies, totaling over 1.1 billion USD in funding prior to its IPO [56][57]. - The governance structure is stable, with the founder holding a significant voting power, ensuring effective decision-making [60]. Financial Analysis - The company is currently in an investment phase, with L2+ and L4 businesses contributing to revenue. The service revenue has seen rapid growth due to partnerships, while product revenue is derived from various autonomous vehicle models [66]. - Cash reserves are robust, with 5.4 billion yuan available as of Q3 2025, bolstered by successful financing rounds, ensuring liquidity and supporting ongoing operations [71]. Technological Core - WeRide's competitive edge is built on its self-developed technology stack, including the WeRideOne platform, which integrates advanced driving algorithms and a comprehensive sensor suite for enhanced safety and operational efficiency [75].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company is positioned as a leader in the commercialization of RoboTaxi, with a clear path towards profitability as it benefits from policy openings and technological advancements [7][8]. - The company has achieved significant revenue growth, with a projected increase in total revenue from 554.64 million yuan in 2025 to 1,987.24 million yuan in 2027, reflecting a compound annual growth rate (CAGR) of 110.26% [1]. - The company has a strong cash reserve of 5.4 billion yuan, which supports its research and development efforts and expansion plans [7]. Summary by Relevant Sections Financial Analysis - The company’s total revenue for 2023 is projected at 401.84 million yuan, with a year-on-year decline of 23.83%. However, it is expected to rebound with a growth of 53.58% in 2025 and 70.41% in 2026 [1]. - The net profit attributable to shareholders is forecasted to improve from a loss of 2.517 billion yuan in 2024 to a loss of 1.055 billion yuan in 2027 [1]. - The earnings per share (EPS) is expected to improve from -2.45 yuan in 2024 to -1.03 yuan in 2027 [1]. Industry Overview - The RoboTaxi market is anticipated to reach a scale of 200 billion yuan by 2030, capturing approximately 36% of the B-end shared mobility market [7][8]. - The company is the only entity globally to have obtained autonomous driving licenses in eight countries, showcasing its leading position in the industry [7]. - The report highlights the significant reduction in costs associated with autonomous driving technology, with the BOM cost dropping below 300,000 yuan, enhancing the profitability outlook for RoboTaxi operations [7][8]. Technological Edge - The company utilizes a multi-sensor fusion approach, integrating various technologies to enhance safety and reliability in autonomous driving [7][8]. - The development of the WeRideOne platform is central to the company's competitive advantage, enabling efficient autonomous driving solutions across multiple scenarios [7][8]. Market Positioning - The company has established a robust presence in both domestic and international markets, with successful operations in major cities such as Beijing, Guangzhou, and various locations in the Middle East [7][8]. - The report emphasizes the importance of capturing market share in developed regions, where the potential for RoboTaxi services is significantly higher compared to China [7][8].