00800 Overview

Market Performance: The HSI fell by 161 points (0.6%) to 26,544, while the HSCEI and HSTECH also experienced declines, with total market turnover reaching HKD91.755 billion.

Oil and Energy Stocks Surge: PETROCHINA and CNOOC saw significant gains of 4.6% and 3.3%, respectively, with CNOOC hitting an all-time high, while other energy-related stocks also performed well.

Robotics and AI Stocks Rally: Following a viral performance at the CCTV Spring Festival Gala, robotics stocks like DOBOT and ROBOSENSE surged by over 19%, alongside strong performances from AI model stocks.

Tech Sector Declines: Major tech companies such as Alibaba, Baidu, and Tencent faced losses, with declines ranging from 1.4% to 7.8%, while several other tech stocks also experienced significant drops.

Launch of Robotaxi Service: WERIDE-W and Uber have officially launched the first Robotaxi commercial operation service in downtown Abu Dhabi, marking the deployment of autonomous vehicles in the city's center.

Expansion of Operational Area: The Robotaxi service now covers approximately 70% of Abu Dhabi's core region, with the fleet size growing fourfold since the service began in December 2024.

Future Fleet Growth: WeRide has deployed over 200 Robotaxis in the Middle East and plans to expand the fleet to several thousand vehicles in the coming years.

Commitment to Deployment: By 2027, WeRide and Uber aim to deploy at least 1,200 Robotaxis across key cities in the Middle East, including Abu Dhabi, Dubai, and Riyadh.

WeRide's Stock Performance: WeRide's US stock has dropped 10% year-to-date, underperforming the KWEB ETF by 16%, primarily due to increased competition in the robotaxi sector, especially from Tesla.

Market Concerns: JPMorgan's report highlights that WeRide's advanced autonomous driving features may be limited without significant localization software and data integration, giving an advantage to leading Chinese suppliers.

Expansion Plans: WeRide announced plans to deploy at least 1,200 robotaxis in the Middle East in collaboration with Uber by 2027, indicating a clear strategy for commercial growth.

Broker Rating: Despite current challenges, JPMorgan maintains an Overweight rating on WeRide's US stock with a target price set at $17.

Revenue Growth Forecast: BOCI predicts WERIDE-W's 4Q25 revenue will exceed RMB290-300 million, driven by significant growth in the Robotaxi business and seasonal increases in Robobus sales.

Fleet Expansion Plans: By the end of this year, WERIDE-W's Robotaxi fleet is expected to surpass 2,000 vehicles, with a focus on the Chinese market and potential international expansion in the Middle East through a partnership with Uber.

Investment Rating and Target Price: BOCI maintains a Buy rating for WERIDE-W, adjusting the target price for its US stock from US$20 to US$13, while setting a target price of $34 for its H-shares.

Market Focus: The company is concentrating on core markets like Guangzhou and Beijing in China, while also planning to deploy at least 1,200 Robotaxis in the Middle East by 2026.

Citi's Outlook on Chinese Carmakers: Citi has a neutral outlook for Chinese carmakers in 1Q26, predicting that BYD, Geely, and Leapmotor may outperform the market due to model updates and strong export growth, while others like Seres and Li Auto may struggle with profit margins and weak sales.

Industry Challenges and Tailwinds: The Chinese auto industry is expected to face five major tailwinds, including increased EV market share and export growth, but also five challenges such as rising costs and cautious retail growth for EVs, leading to a potential decline in wholesale and retail forecasts for FY26.

Stock Recommendations: Citi has recommended several stocks, including BYD, Pony, WeRide, Hesai, Minth Group, and Weichai Power, amidst a backdrop of short selling activity and varying market performance.

Market Conditions: The report highlights a potential end to the price war in passenger vehicles and a favorable phase for commercial vehicle demand, while also noting high inventory levels of fuel vehicles as a concern for the market.

Market Performance: The HSI rose 0.33% to 26,718, with total half-day turnover reaching $127.938 billion, while the HSCEI and HSTECH also saw slight increases.

BABA-W Support: Alibaba's share price increased by 2.6% after rumors of supporting its chip subsidiary's separate listing, coinciding with the acceptance of Enflame's IPO application.

Sector Movements: Chip stocks experienced declines, with notable drops in SMIC and HUA HONG SEMI, while financials showed mixed results, with HSBC sliding slightly and HKEX gaining.

Stock Highlights: BYD and robotics stocks like JOHNSON ELEC faced losses, while XIAOMI surged 2.5% following a share buyback announcement, and POP MART's new product launch boosted its shares by 6.5%.