Everbright Securities reiterated its "Buy" rating on WERIDE-W (00800), citing the company's strong Q3 performance, potential for continued reduction in Robotaxi hardware and operating costs per vehicle, and supportive policies across multiple countries that could drive further market penetration. As a global leader in Robotaxi technology, WERIDE-W has expanded its autonomous driving operations to 30 cities across 11 countries, with commercial deployments in the Middle East expected to mature by 2025, enabling fleet-scale operations to optimize per-unit economics. Key highlights from Everbright's report include:

**Q3 Performance Highlights:** 1. **Revenue Growth:** Q3 2025 revenue reached RMB 171 million, up 144% YoY. Product revenue surged 429% to RMB 79 million, driven by increased Robotaxi and Robobus sales, while service revenue grew 67% to RMB 92 million, fueled by smart data and ADAS support services. Robotaxi-related revenue jumped 761% to RMB 35.3 million. 2. **Profitability Improvement:** Gross profit soared 1,133.55% YoY to RMB 56 million, with gross margin up 26.41 percentage points to 32.93%, attributed to lower ADAS R&D costs and reduced inventory provisions compared to 2024.

**L4 Robotaxi Commercialization Accelerates Globally:** - WERIDE-W now holds driverless operation permits in 8 countries, with a Robotaxi fleet nearing 750 vehicles. On November 20, 2025, it secured Switzerland’s fully driverless license for public road testing and operations in Zurich’s Furttal region. As of November 25, 2025, permits cover Switzerland, China, UAE, Saudi Arabia, Singapore, France, Belgium, and the U.S. The total autonomous fleet exceeded 1,600 vehicles by October 31, 2025, including ~750 Robotaxis.

**Middle East Expansion:** - The Middle East is poised to become a key growth driver, with fully driverless operations expected to achieve per-unit breakeven. In Q3 2025, WERIDE-W deployed 100+ Robotaxis across Dubai, Abu Dhabi, and Riyadh, targeting 500+ vehicles in Abu Dhabi by 2026. Approved by UAE federal authorities in October 2025, the company will partner with Uber and TXAI to launch fully driverless (no safety operator) commercial services in Abu Dhabi, with a remote safety operator-to-vehicle ratio of 1:10. Eliminating in-car safety personnel and extending operating hours are projected to achieve breakeven per vehicle.

**Domestic Operations:** - In China, 24/7 fully driverless services launched in Guangzhou’s Huangpu District (August 2025), with peak daily trips per Robotaxi hitting 25. Commercial operations continue in Beijing’s Yizhuang and Daxing International Airport zones.

**L4 Robobus Global Rollout:** - August 2025: Shenzhen’s first L4 autonomous bus route debuted in Luohu District. - September 2025: Robobus launched in Leuven, Belgium. - October 2025: Trial operations began in Ras Al Khaimah, UAE.

**L2+ ADAS Milestone:** - On November 5, 2025, WERIDE-W and Bosch announced SOP (start of production) for their one-stage end-to-end ADAS solution, which will supply Chery’s Exeed ES and ET models. The system has also secured mass-production contracts for multiple GAC Group passenger vehicles.

**Risks:** Slower-than-expected commercialization, low Robotaxi adoption, intensifying competition, international expansion challenges, and stock price volatility.