Risk Reward Update: WeRide Inc | Asia Pacific

Research evidence excerpt

Risk Reward Update: WeRide Inc | Asia Pacific

UpdateM

Risk Reward – WeRide Inc (WRD.O)

KEY EARNINGS INPUTS

Drivers Dec 2025 Dec 2026e Dec 2027e Dec 2028e

Product Revenue (Rmb, mn) 360 654 2,054 5,527

Service Revenue (Rmb, mn) 325 820 2,133 6,373

Total Gross Profit (Rmb, mn) 207 697 2,096 6,406

INVESTMENT DRIVERS RISKS TO PT/RATING MS ESTIMATES VS. CONSENSUS

Robobus/robosweeper delivery volume RISKS TO UPSIDE FY Dec 2026e

Robotaxi/robovan order backlog Robotaxis and robovans reach large-scale

Penetration into new cities/countries commercialization sooner than expected. Sales / 1,473.7

Robobus orders expand more quickly than Revenue 961.6 1,699.5

GLOBAL REVENUE EXPOSURE expected overseas. (Rmb, mn) 1,148.2

Achieve net profit in early 2027

RISKS TO DOWNSIDE

0-10% MEA EBIT

Orders for robotaxis, robovans, robobuses, and (2,002.6) (1,125) 90-100% Mainland China (Rmb, mn)

robosweepers are delayed or canceled. (1,682.0)

Regulations tighten on driverless vehicles in

China.

Source: Morgan Stanley Research Estimate

Challenges arise in obtaining the necessary Net incomeView explanation of regional hierarchies here (2,061.2) (981)

licenses for overseas robo-fleet operations. (Rmb, mn)

(1,365.8)

OWNERSHIP POSITIONING

EPS Inst. Owners, % Active 64.6% (6.0) (2.9)

(Rmb)

HF Sector Long/Short Ratio 1.7x (4.2)

HF Sector Net Exposure 11.1%

Mean Morgan Stanley Estimates

Refinitiv; MSPB Content. Includes certain hedge fund Source: Refinitiv, Morgan Stanley Research

exposures held with MSPB. Information may be

inconsistent with or may not reflect broader market

trends. Long/Short Ratio = Long Exposure / Short

exposure. Sector % of Total Net Exposure = (For a

particular sector: Long Exposure - Short Exposure) /

(Across all sectors: Long Exposure – Short Exposure).

Morgan Stanley Research 3