Strategic Cooperation Announcement: PONY-W and Beijing Electric Vehicle Co., LTD have entered a "five-in-one" strategic cooperation, marking a new phase in their partnership.

Focus on Autonomous Driving: The collaboration aims to enhance mass production, commercialization, and globalization of autonomous driving technologies, leveraging their experience with L4-level Robotaxi operations.

Company Expansion Plans: He Xing, Vice President of PONY-W, announced plans to enter the Hong Kong market during the Greater Bay Area Business & Industry Summit Forum.

Current Operations: PONY-W, which was listed in Hong Kong last year, operates a fleet of 1,000 robotaxis and approximately 200 autonomous trucks, currently being trialed in four major cities in mainland China.

Baidu's Spin-off Announcement: Baidu's announcement regarding Kunlunxin's spin-off listing is expected to enhance transparency in its chip business, potentially leading to more disclosures and a focus on increasing shareholder value.

UBS Target Price Adjustment: UBS has raised its target price for Baidu from HKD151 to HKD175, based on a sum-of-the-parts valuation that includes various business segments and assets, including a significant valuation for Kunlunxin.

Trade-in Subsidy Policy Update: China has updated its trade-in subsidy policy for passenger vehicles, maintaining the subsidy cap but changing the structure for 2026 to be a percentage of vehicle price rather than fixed amounts.

Market Consolidation Impact: The new subsidies are expected to accelerate market consolidation in the entry-level vehicle segment, particularly for models priced below RMB160,000.

Performance of Major Automakers: Major automakers like BYD, Geely, and GWMOTOR are positioned to benefit from scale advantages and cost control, contrasting with smaller competitors facing losses.

Commercial Vehicle Subsidies: Subsidies for commercial trucks and city buses remain unchanged, which is anticipated to benefit companies like YUTONG BUS and SINOTRUK.

Company Overview: PONY-W (02026.HK) is recognized as a leader in the L4 autonomous driving segment, with strong technology and commercialization capabilities, according to a CMSI research report.

Commercial Success: The company has made significant advancements in commercial applications, highlighted by a profitable robotaxi operation in Guangzhou during Q3 2025, marking a key milestone in its business model.

Broker Rating: CMSI has initiated coverage on PONY-W's H-shares with an "Overweight" rating, reflecting confidence in the company's growth potential.

Market Position: PONY-W holds a substantial market share in autonomous driving services and trucks, with expectations of continued growth driven by the rollout of seventh-generation models and fleet expansion.