BOC International has released a new research report initiating coverage on Momenta-W (06880) with a Buy rating and a price target of HK$520. The brokerage highlighted that Momenta is a leading provider of physical AI technology, possessing mature commercialization capabilities in L2/L2++ ADAS (the L2 mass-production business), while its upside potential in L4 autonomous driving is currently undervalued.

In its report, BOC International stated that Momenta, with its leading position in L2/L2++ ADAS, scalable software-driven profit model, and reliable development roadmap toward L4 Robo-X, is well positioned to capitalize on the global wave of intelligent driving upgrades. The company has validated its commercialization model through passenger vehicle (PV) deployments and is building a differentiated physical AI platform centered on a unified data flywheel shared across both the L2 mass-production business and L4 Robo-X applications.

BOC International expects Momenta's expanding vehicle base and deep OEM coverage to drive strong revenue growth over multiple consecutive years. Meanwhile, accelerated Robovan commercialization could unlock the next phase of upside before Robotaxi and broader embodied intelligence opportunities reach scale. "We forecast 2026-2028E revenue of RMB 4.0 billion, RMB 7.0 billion, and RMB 12.6 billion respectively. Applying a 15x 2027E price-to-sales multiple, we arrive at a price target of HK$520, initiating coverage with a Buy rating," the report noted.

BOC International believes Momenta's "one flywheel, two legs" strategy supports multi-scenario expansion in physical AI. The L2/L2++ mass-production passenger vehicle business generates cash flow, OEM channels, and large-scale real-world driving data, while L4 Robo-X applications reuse the same core architecture for more complex scenarios. This approach is expected to create synergies in model iteration, engineering reuse, and infrastructure efficiency, while supporting the company's continued expansion into the broader physical AI landscape in the future.