CMB Securities has released a research report stating that on June 4th, WeRide-W (00800) was officially included in the Southbound Stock Connect. With the acceleration of overseas commercialization and the expansion of its vehicle fleet, the brokerage anticipates WeRide's revenue will achieve high-speed growth. The firm forecasts the company's 2026-2028E revenue to be RMB 1.05 billion, RMB 2.03 billion, and RMB 4.81 billion, respectively, and maintains its "Overweight" rating.

Key Points from the Report

Recent Developments

On June 2nd, WeRide and Uber announced plans to launch Spain's first commercial Robotaxi pilot service in Madrid. This marks their first joint entry into the European market, and Madrid will become the 12th global city for WeRide's Robotaxi service. On June 4th, WeRide-W was formally added to the Southbound Stock Connect.

Robotaxi Growth in Scale and Efficiency, Global Commercialization Accelerates

Regarding fleet scale, as of the end of April 2026, the company's global Robotaxi fleet has grown to approximately 1,300 vehicles, with about 1,000 in China. It is projected that the Robotaxi fleet size will reach 2,600 vehicles by the end of 2026. The overseas commercialization process is accelerating. The company currently covers several key domestic and international markets including Singapore, Abu Dhabi, Dubai, Riyadh, and Zurich. The entry into Madrid will further expand the global footprint of WeRide's Robotaxi service, marking its 12th city globally and accelerating the process of global-scale deployment.

Strengthening Uber Partnership to Accelerate Five-Year, 15-City Global Commitment

In May 2025, the company and Uber announced they would "deploy Robotaxi services in 15 new international cities over the next five years." With the launch of the Madrid project, the partnership has completed deployments in four cities: Abu Dhabi, Dubai, Riyadh, and Madrid. The remaining 11 cities are scheduled to be covered before 2030. Furthermore, according to the cooperation plan, the two parties will deploy tens of thousands of Robotaxis globally, with the fleet scale progressively expanding.

Strong Q1 2026 Performance, Future Results Expected to Improve Quarter-over-Quarter

The company reported total revenue of RMB 114 million for Q1 2026, a year-on-year increase of 57.6%. Product revenue, driven by sales of L4 vehicles including Robotaxis, surged 115.8% year-on-year. Gross margin remained at a healthy 34.7%, and the operating loss narrowed by 1.2% compared to the same period last year. The company's total cash, deposits, and financial products on hand amounted to RMB 6.22 billion, indicating robust financial health sufficient to support subsequent expansion. Performance in the first quarter is expected to be the low point for the year due to seasonal factors, with revenue anticipated to improve sequentially in subsequent quarters. The company forecasts Q2 revenue to be between RMB 170 million and RMB 180 million, representing year-on-year and quarter-on-quarter growth exceeding 30%.

Vehicle Model Iteration Aids Cost Reduction, Share Buyback Demonstrates Management Confidence

(1) Model Iteration: The upgraded, pre-production mass-market Robotaxi model GXR is scheduled for official launch within 2026. The production cycle per GXR vehicle is expected to be significantly reduced from 1 hour to under 10 minutes, with unit vehicle costs potentially decreasing by a further 15%. (2) Share Repurchase: At the end of March, the company planned to repurchase up to USD 100 million worth of Class A ordinary shares over the next 12 months. As of early June, the total number of Hong Kong shares available for repurchase was 100 million, with 37 million shares already repurchased. (3) Stock Connect Inclusion: The company's formal inclusion in the Southbound Stock Connect in June is expected to further enhance market liquidity.

Risk Factors

The report highlights risks including the pace of commercialization and industry uncertainties, sustained losses, and technology safety and regulatory risks.