WeRide Inc

WeRide Inc (NASDAQ: WRD) is a holding company principally engaged in providing autonomous driving products and services. The Company’s products and services are designed to conquer complex road conditions and navigate high population and traffic density, operating all day and under all weather conditions. The Company’s products and services include Robotaxi, Robobus, Robovan and Robosweepers. The Company has also been developing advanced driving assistance system (ADAS) that enable advanced autonomous driving functions on passenger vehicles.

Recent Business and Financial Updates

• Nvidia's 13F Filing Impact on WeRide: Nvidia Corporation's recent 13F filing disclosed their investment in WeRide (WRD), leading to a significant surge in WeRide's stock value. This endorsement by Nvidia, a leader in AI technology, has spotlighted WeRide's potential within the autonomous driving sector.
• WeRide Reinforces Technology Leadership and First-mover Position in the World: Following its successful listing on Nasdaq, WeRide has continued to advance its strategic goals in autonomous driving technology. In October 2024, WeRide launched GXR, its innovative next-generation Robotaxi platform, which is a result of over 1,800 days of operational experience. The GXR platform integrates WeRide's Level 4 autonomous driving systems, Sensor Suite 5.6, and the HPC 2.0 computing platform, all built on Farizon SuperVan's steer-by-wire architecture. The HPC 2.0 platform offers substantial AI computing power at over 1,300 TOPS, while the Sensor Suite 5.6, with over 20 sensors, ensures comprehensive vehicle perception even under challenging conditions.
• WeRide Expands Global Presence with Key Partnerships and Milestones: WeRide's global expansion has been marked by strategic partnerships, including a notable collaboration with Uber in September 2024 to integrate WeRide’s Robotaxis into Uber’s platform in the UAE. This partnership was solidified when Uber invested in WeRide’s IPO in October 2024. Additionally, in November, WeRide signed an MoU with Beti to introduce Robobus services in France starting January 2025. WeRide also advanced in Singapore, securing licenses for its Robosweeper operations and launching the city-state's first L4 autonomous Robobus service in July 2024, showcasing its pioneering role in autonomous transport.
• New Commercialization Milestones Achieved in China: In China, WeRide has achieved several commercialization milestones. In November 2024, WeRide, in partnership with Bosch, enabled Chery Auto's EXEED brand to launch the Falcon intelligent driving system, which supports complex urban navigation without HD maps. WeRide also received approval for fare-charging Robobus services in Hengqin in September 2024, following their initial success in Guangzhou. Furthermore, WeRide marked firsts with L4 autonomous sanitation projects in Shantou in August 2024 and Dongguan in July 2024, showcasing their technology's versatility.
• Management Commentary: Tony Han, WeRide’s Founder, Chairman, and CEO, emphasized the company's commitment to globalizing autonomous driving technology, highlighting the GXR platform's role in meeting high safety standards and commercial viability. The partnership with Uber and expansion into seven countries illustrate WeRide's scalable technology. CFO Jennifer Li discussed the positive impact of the Nasdaq IPO on WeRide's vision, noting the company's focus on financial discipline, innovation, and expanding its customer base through commercialization efforts.
• Third Quarter 2024 Financial Results: WeRide reported a slight decrease in total revenues to RMB70.0 million in Q3 2024 from RMB74.2 million in Q3 2023. Product revenue saw a significant increase to RMB15.0 million, driven by higher sales of Robosweepers, while service revenue decreased to RMB55.0 million due to the completion of certain R&D services. Costs of revenue rose to RMB65.5 million, with increased expenses in both product and service sectors. Operating expenses surged to RMB895.7 million, reflecting investments in personnel, R&D, and administrative growth. The net loss widened to RMB1,042.7 million, with a basic and diluted net loss per ADS of RMB14.79. WeRide's financial health was supported by cash reserves of RMB2,705.9 million as of September 30, 2024. The company anticipates revenues between RMB350 million and RMB380 million for the full year, amidst ongoing economic uncertainties.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 89.03, currently upward trending and inside bought zone, with expectations of a consolidation or a correction to next important support levels of USD 25-USD 27. Additionally, the stock's current positioning is above both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term support levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH`’ rating has been given for WeRide Inc (NASDAQ: WRD) at the closing price of USD 31.50, as of February 14, 2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is February 14, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.