CICC has released a research report initiating coverage on MOMENTA-W (06880) with an Outperform industry rating and a target price of HK$500.00, based on a sum-of-the-parts valuation method for 2026. The company is recognized as a global leader in intelligent driving and physical AI. The firm estimates EPS for 2026-2027 at -2.38 yuan and -1.87 yuan, respectively. Currently trading at 14 times 2026 P/S, the target price implies an upside potential of 86.3%.

The firm is optimistic about the company's strong world model capabilities, leveraging its significant competitive edge in the intelligent driving sector to expand into diverse physical AI scenarios such as Robovan, Robotaxi, and embodied intelligence, supporting long-term growth.

Starting with Intelligent Driving, Holding a Clear Lead

MOMENTA-W begins with intelligent driving as its entry point into physical AI, adopting a strategy of "one flywheel, two legs" to offer two solutions: mass-produced vehicles and autonomous taxi services. As of July 2026, over 1 million mass-produced vehicles have been equipped with MOMENTA-W solutions, covering over 12 billion kilometers of real-world driving. By multiple metrics, including the number of orders placed, the company ranks first among independent urban NOA solution providers in China.

Solid Foundation Capabilities, Ensuring the Strong Get Stronger

Leveraging its dominant position in mass production, MOMENTA-W has accumulated significant advantages in data, models, and computing power. More importantly, the company has built a automated development process, operational management framework, and corporate culture, exemplified by its mainline platform, creating a positive business cycle of continuous scenario accumulation, rapid performance improvement, and declining costs. This demonstrates the "flywheel effect" where it accelerates as it grows.

Clear Growth Strategy, Heading Toward the Vast Physical AI Horizon

MOMENTA-W has a clear growth path in the mass market, L3, and international expansion. Meanwhile, empowered by its world base model, the company is expected to support the large-scale deployment of Robovan, Robotruck, Robotaxi, and even embodied intelligence using the same underlying model, further expanding its growth prospects.

Potential Catalysts: Progress in Robovan and Robotaxi business; overseas market catalysts.

Risks: Multiple uncertainties related to emerging technologies, earnings falling short of expectations, policy disappointments, intense industry competition, pricing pressure, and risks in computing power and storage resources.