买入：2026年第一季度基本符合预期；车队扩张保持完好

Auto Components QoQvolatilitymainlyreflectsprojectdeliveryseasonalityand cadence 11.4011.40SHARE PRICE (USD)UPSIDE/DOWNSIDE7.65+49.0%(as of 13 May 2026) Aprill; 2026fleet guidance unchanged + Maintain Buy rating and USD11.40 target price RMB114m, up 58% y-0-y, with gross profit up 56% y-0-y to RMB39.6m and grossmarginat35%.Theq-o-grevenuevolatilitymainlyreflectedproject-basedrevenuebookingcadence,includingclientvalidationschedulesandholiday-relatedoperational seasonality,in our view,rather than any change in underlying demandtrends.Product revenue remains tied to project implementation and commissioningschedules, while certain overseas deliveries particularly in the Middle East-weredeferred into subsequent quarters.Looking ahead, we expect revenue recognition toimprove through the remainderof 2026 asfleetdeployment and commercialisationactivitiescontinuetoscale Fleet ramp remains on track.WeRide had c1,300 robotaxis globally by end-April2026, including c1,000 in China, broadly consistent with its deployment roadmap.Management reiterated its 2026 target of c2,600 robotaxis and c5,000total L4vehicles. Regarding the recent China robotaxi licence suspension headlinesmanagementcharacterisedthisasatemporaryoperationaladjustmentratherthanastructural policy shift. We continue to believe tighter regulatory oversight couldultimately raise industry entry barriers and reinforce the positioning of scaled playerswith stronger safety and compliancerecords such as WeRide. Operational momentum continues to improve.WeRide's registered usersofrobotaxi service in China nearly doubled y-o-y, while domestic robotaxi utilisationtrends continued to strengthen, with average trips per vehicle per day exceeding 17in1Q26andpeak-dayutilisationreaching28trips.Overseasexpansionalsocontinued to progress, including the launch of Dubai's firstfully driverless commercialrobotaxiservice,alongsideongoingdevelopmentsinSingaporeandSlovakia.Inaddition,the company's WRD 3.0 has secured four consecutive autonomous-drivingcompetition titles in China and nearly 30 model design-ins/orders. Yuqian Ding*HeadofChinaAutosResearchThe Hongkong and Shanghai Banking Corporation Limitedvugian.ding@hsbc.com.hk+85222885108 Michel Liu* (Reg. No. S1700524090001)AnalystChinaAutosHSBC Qianhai Securities Limitedmichel.m.liu@hsbcqh.com.cn+861057952351 Maintain Buy rating and USD11.40 target price. We keep our earnings estimatesandDCF assumptions unchanged.Wemaintain Buy with an unchanged TP ofUSD11.40 for WRD US, implying a 49% upside. We have a HKD29.60 TP(unchanged) on the H-share (800 HK, CMP HKD20.66). See page 4 for potentialshare price catalysts and key downside risks. *Emplyed byanon-USaffliateofHSBC Securities(USA) Inc,andisnot registered/qualifed pursuant to FINRA regulations HSBC Funding the Future Survey Sentiment, Al and Private Credit Click to view Issuer of report: The Hongkong and ShanghaiBanking Corporation Limited Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications inthe Disclosure appendix, and with the Disclaimer, which forms part of it. ViewHSBCGlobalInvestmentResearchat:https://www.research.hsbc.com Source: HSBCNote: Priced at close of 13 May 2026 the 2026-35e free cash flow and a perpetual growth rate of 2.5%, we derive an enterprise valueof RMB22.5bn and an equity value of RMB26.5bn (all unchanged). Using HSBC GlobalInvestment Research FX team's end-2026e USD/RMB forecast of 6.75 (unchanged), we keepour target price unchanged at USD11.40, implying c49% upside from the current share price.As such, we remain Buy on WeRide. With WeRide's valuation now approaching our bear-casescenarioassumptions (seeWeRide:Initiate at Buy:Aglobal robotaxi pioneer,31March2026)and share repurchase programme still in progress (now USD61m of the planned USD100mcompleted), we believe the stock offers an attractive buying opportunity. We have a HKD29.60TP (unchanged) on the H-share (800 HK, CMP HKD20.66), using HSBC end-2026 USD/HKDFX forecast of 7.80 and ADR:H-share conversion ratio of 3 (unchanged) robotaxi players to benefit from the broader robotaxi adoption. 1.Potential HongKong Stock Connect inclusion (early June 2026 window). in Tier-1 cities and overseas, especially in the Middle East and Europe3.Fleetdeploymentaccelerationandimprovinguniteconomicsthrough2o262Q26 earnings update: more disclosure on commercialisation progress. 1.Regulatory timing risk That said, while regulatory paths may fluctuate, we believe the strategic direction remainstowardsnormalisationandinstitutionalisationofrobotaxioperations. Competitive structure risk The structural risk to pure-play robotaxi operators is not marginal technicalunderperformance, but the entry of L3-scalers (OEMs and Tier-1 suppliers) withmanufacturing scaleandcapitaladvantages.Theirparticipationcould compressthetimewindowfor standalone operators to establish density and operational moats.Additionally,ifdomesticfleetscaling,itscompetitiveposition