Analysis of the Development Prospects of Wanma Technology's Connected Car and Autonomous Driving Business

Wanma Technology (300698.SZ) currently has a market capitalization of 56.5 billion USD, a stock price of 42.14 USD, and has shown strong stock performance since 2025 with a cumulative increase of 24.97% [0]. The company mainly provides connected car connection management, platform operation and other services to automakers, covering autonomous driving business scenarios such as Robotaxi, Robovan, and unmanned mining trucks.

From a financial perspective, the company’s latest quarterly revenue reached 217 million USD, with a net profit margin of 5.85% and a return on equity of 8.63% [0]. The current valuation level is high, with a P/E ratio of 131.69 times, reflecting the market’s high expectations for the company’s future growth [0].

China is accelerating the promotion of the ‘vehicle-road-cloud integration’ development strategy. In July 2024, it launched intelligent connected vehicle application pilots in 20 cities, with a planned total investment exceeding 30 billion USD [1]. This policy background provides strong impetus for the connected car industry.

‘Vehicle-road-cloud integration’ is regarded as the key to winning the下半场 of automotive intelligence. Unlike the overseas ‘single-vehicle intelligent driving’ approach, China has chosen a more systematic technical route [1]. Wanma Technology’s technical advantages in the connected car field, such as DSDA link dual-active and AI networks, can meet the communication requirements of autonomous driving for high bandwidth, low latency, full-scenario network coverage, and high network stability [1].

Wanma Technology focuses on commercial scenarios such as unmanned mining trucks and Robovan, which have clear commercial prospects:

: As an important application scenario of commercial vehicle autonomous driving, unmanned mining trucks have entered the commercialization stage. Data shows that by 2027, the penetration rate of unmanned mining trucks in a certain mining area in Northwest China is expected to reach 80%, and the national market size is expected to reach 62.5 billion USD [2]. Mining truck autonomous driving has obvious production tool attributes, with extremely high requirements for cost and efficiency, and relatively rigid technical needs.

: Although the commercialization of autonomous driving for passenger vehicles faces more challenges, there is still good development space in specific scenarios. Wanma Technology’s large-scale connected car management capabilities can provide key connection and platform support for these application scenarios.

Similar to the model of autonomous driving companies like Xidi Zhijia, Wanma Technology adopts a business model of technology output and platform services, without directly participating in vehicle manufacturing or operation [2]. This asset-light model reduces capital expenditure requirements and can better应对 the three major uncertainty challenges: technical maturity, regulatory tolerance, and cost acceptance.

Huawei has built a strong ecosystem in the intelligent automotive sector. Data shows that the monthly sales of models equipped with Huawei’s Kunlun Intelligent Driving have exceeded 100,000 units, a record high, and the monthly active user ratio of 33 cooperative models exceeds 95% [3]. Huawei is expanding the ‘circle of friends’ of its intelligent automotive ecosystem through a dual strategy of ‘standard answers’ and ‘customized solutions’ [3].

: Failing to enter Huawei’s ecosystem means Wanma Technology:

• Misses the synergistic effect with Huawei’s intelligent driving technology
• Cannot share the rapidly growing user base of Huawei’s intelligent driving
• Lacks话语权 in the evolution of technical standards

: As an independent connected car service provider, Wanma Technology can:

• Maintain independence and flexibility in technical routes
• Provide services to multiple automakers to avoid single-point dependence
• Focus on core capabilities in connection management and platform operation

From a valuation perspective, the market usually gives higher valuation expectations to concept stocks that cooperate with Huawei. Wanma Technology’s current P/E ratio of 131.69 times is already at a high level, but there may be a certain valuation discount compared to related companies within Huawei’s ecosystem.

:

• The company’s technical accumulation and focus in the connected car field
• Industry-wide development opportunities driven by policies
• Differentiated application scenario layout

:

• Lack of technical and market synergy from Huawei’s ecosystem
• Limited话语权 in industry standard setting
• Facing competitive pressure from enterprises within Huawei’s ecosystem

1. Policy Dividends
   : The advancement of vehicle-road-cloud integration pilot cities will bring hundreds of billions of USD in investment demand for connected car infrastructure
2. Scenario Advantages
   : The commercialization of commercial scenarios such as unmanned mining trucks may be faster than that of passenger vehicles
3. Technical Expertise
   : The company’s technical accumulation in connection management and AI networks meets the development needs of autonomous driving

1. Competitive Pressure
   : The competitive advantages of enterprises within Huawei’s ecosystem may squeeze Wanma Technology’s market space
2. Technical Risk
   : Uncertainties still exist in the autonomous driving technology path, which may affect related investment returns
3. Valuation Risk
   : The current valuation level is high; if business development fails to meet expectations, there may be a risk of correction

Wanma Technology has a good technical foundation and differentiated positioning in the connected car and autonomous driving fields, especially with certain advantages in commercial scenarios such as unmanned mining trucks. However, not partnering with Huawei will indeed affect the company’s competitive position and valuation level to a certain extent.

:

• Short-term focus on policy catalysts and project order landing
• Mid-term focus on tracking the business model verification of the company in core application scenarios
• Long-term evaluation of the company’s technical route choices in the evolution of industry standards

Considering the company’s current high valuation level, it is recommended that investors maintain a cautious attitude and wait for a better entry opportunity or wait for performance verification before making investment decisions.

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[0] Jinling API Data
[1] NetEase Finance - ‘Robotaxi, Robovan and other autonomous driving scenarios are key business areas for the company’ (https://www.163.com/dy/article/KGK52SL70519D4UH.html)
[2] Yicai - 'Countdown to IPO: Decoding Xidi Zhijia’s