Covered China's autonomous driving leader Momenta for the first time, giving a positive rating, with significant technology and scale advantages (UBS)
The report believes that its technology and scale advantages can help mainstream car companies enter the era of autonomous driving, and its light-asset model and high revenue growth are expected to bring high profit margins.
The report believes that its technology and scale advantages can help mainstream car companies enter the era of autonomous driving, and its light-asset model and high revenue growth are expected to bring high profit margins. The company cooperates with 24 global car companies and is expected to achieve a revenue CAGR of approximately 50% from 2025 to 2030 and achieve breakeven in 2028. The market is divided on the valuation of the self-driving software company, but UBS's first coverage gives a positive signal about its unique positioning and business model as a third-party supplier. One sentence conclusion: Momenta is expected to become the "Qualcomm" in the field of autonomous driving software with its technological leadership and extensive OEM cooperation relationships. Its asset-light and high-growth business model will gain market popularity. Positive/negative: Positive for Momenta (6880.HK). Catalysts: 1) Fixed-point announcement of new incremental production models; 2) Quarterly data on L2+ ADAS assembly volume; 3) When will the company achieve the break-even milestone?