BOC International has released a research note stating that WeRide Inc. (WRD) (ASX: 00800) achieved rapid revenue growth in Q1 2026, with its gross margin level remaining largely stable year-on-year. The bank has adjusted its profit forecasts, projecting company revenues of RMB 1.0 billion / 1.39 billion / 1.87 billion for 2026-2028, with price-to-sales (P/S) ratios of 15.3x / 11.0x / 8.2x respectively. As a leading enterprise in autonomous driving mobility services, the company's continuous expansion in autonomous vehicle deployment, its asset-light operational business model, and its leading technological advantages are expected to further enhance its profitability. Short-term fluctuations do not alter the positive long-term trend, leading the bank to maintain its Buy rating on the company. BOC International's key views are as follows:
Recent Developments and Expansion
On June 2, WeRide and Uber announced plans to launch Spain's first commercial Robotaxi pilot service in Madrid, further expanding the company's global Robotaxi footprint. On June 3, WeRide's Hong Kong-listed shares were formally included in the list of securities eligible for Southbound Stock Connect, with the adjustment taking effect on June 4. The company is scaling up its fleet of L4 autonomous vehicles, and its asset-light operating model coupled with leading technical capabilities are building a high competitive barrier, supporting the maintained Buy rating.
Madrid Commercial Launch
WeRide's commercial Robotaxi operations in Madrid are set to commence within this year. Madrid is recognized as one of Europe's most commercially viable Robotaxi markets, characterized by strong travel demand, a large urban population, and a supportive policy environment. With backing from the Madrid regional government, the commercial Robotaxi service will officially launch this year. Local users will then be able to hail a WeRide Robotaxi via the Uber app. Initially, vehicles will be equipped with professionally trained safety operators. As key operational metrics are progressively met, WeRide, AVOMO, and Uber have committed to deploying hundreds more Robotaxis and advancing purely driverless Robotaxi commercial services to cover Madrid's core urban areas. The Madrid project builds on the successful collaboration between WeRide and Uber in Middle Eastern markets like Abu Dhabi and Dubai. Currently, the partnership has established operations in four cities, with plans to cover an additional 11 cities by 2030, aiming for a global deployment of tens of thousands of Robotaxis.
Ongoing International Growth in 2026
The company's Q1 2026 report indicates that in April 2026, WeRide and Grab officially commenced public operations in Singapore's Punggol area. Concurrently, in partnership with Uber and Dubai's Roads and Transport Authority, it launched Dubai's first purely driverless commercial Robotaxi service, further solidifying its leadership in the Middle East's Robotaxi market. Its service in Abu Dhabi now covers approximately 70% of the key areas, with plans to deploy 1,200 Robotaxis across Abu Dhabi, Dubai, and Riyadh by 2027. Furthermore, in March 2026, WeRide partnered with ELEVATESlovakia to initiate Slovakia's first autonomous driving project. This marks Europe's first large-scale commercial deployment at a national level involving multiple autonomous driving product lines, laying the groundwork for future purely driverless commercial operations.
Revenue Growth Driven by Robotaxi Scale
In Q1 2026, the company's revenue reached RMB 114 million, a year-on-year increase of 57.6%. This was driven by the expansion in sales of L4 autonomous vehicles like Robotaxis, with product revenue surging 115.8% year-on-year to RMB 21 million. Service revenue also grew by 49.0% to RMB 94 million, primarily due to increased revenue from intelligent data services and ADAS services. As of April 30, 2026, the company's global autonomous vehicle fleet (encompassing Robotaxi, Robobus, Robovan, and Robosweeper) reached approximately 2,800 vehicles, deployed across 12 countries and over 40 cities worldwide. The Robotaxi fleet size increased to around 1,300 vehicles (with the China Robotaxi fleet comprising about 1,000 vehicles). In China, the average daily orders for Robotaxi exceeded 17, climbing further to 28 during peak periods. The company's gross profit in Q1 2026 grew 56% year-on-year, with the gross margin reaching 34.7%, essentially flat compared to the previous year and continuing to lead the industry.
Dual-Track Strategy and Competitive Advantages
WeRide has achieved scaled commercial applications in both L4 autonomous driving and L2++ advanced driver-assistance systems. The company has developed the GENESIS general world model to support this strategic layout. In April 2026, its one-stage, end-to-end L2++ ADAS solution, WRD 3.0, secured mass production designations for nearly 30 vehicle models from automakers including GAC and Chery. It has also achieved compatibility across multiple chip platforms such as NVIDIA DRIVE, Qualcomm Snapdragon, and SiEngine's "Starlight One," covering different computing power tiers and cost ranges to suit various OEM hardware preferences. Additionally, the company's asset-light operational strategy effectively reduces capital expenditure pressure, enhances expansion speed and flexibility, allowing the company to focus on its core competencies and drive continuous technological innovation.
Inclusion in Stock Connect
On June 3, the company's Hong Kong-listed shares were formally included in the list of securities eligible for Southbound Stock Connect, with the adjustment taking effect on June 4. Following this inclusion, eligible mainland investors can buy and sell WeRide shares traded on the Hong Kong Stock Exchange via the Stock Connect mechanism. This is expected to further improve the accessibility and market liquidity of the company's Hong Kong shares, broaden its investor reach, and strengthen its connection with the mainland capital market.
Key Risks Identified
Potential risks include slower-than-expected customer expansion, delays in policy implementation, and underperformance in cost reduction efforts.
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