---
title: "Momenta is going public: The position of automotive suppliers (Party B) will be strengthened."
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/42205909.md"
description: "Momenta recently released its prospectus for a Hong Kong listing, and even claimed to be the "first physical AI stock" (though I honestly haven't figured out the deeper meaning of physical AI). After some detailed research, let's first consider a simple question: Is Momenta in a buyer's or seller's market? We can summarize it in one sentence: This is a company that customizes intelligent driving technology for automakers. In its early stages, its main business model was charging for technology development, and later it added licensing services. The former essentially makes it an intelligent driving technology service provider for automakers..."
datetime: "2026-06-25T15:08:18.000Z"
locales:
  - [en](https://longbridge.com/en/topics/42205909.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/42205909.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/42205909.md)
author: "[仝志斌](https://longbridge.com/en/profiles/10247393.md)"
---

# Momenta is going public: The position of automotive suppliers (Party B) will be strengthened.

![Image](https://pub.pbkrs.com/uploads/2026/c806c3dcbee490fc45962cb06fb20ab9?x-oss-process=style/lg)

Momenta recently released its Hong Kong IPO prospectus, and even claims to be the "first physical AI stock" (though I honestly haven't figured out the deeper meaning of physical AI). After a detailed study, let's first consider a simple question: Is Momenta in a buyer's or seller's market?

To put it in one sentence: This is a company that customizes intelligent driving technology for automakers. Early on, its main business model was charging for technology development, and later it added licensing services. The former is essentially an intelligent driving technology service provider for automakers, while the latter can be roughly understood as a usage fee for the systems it develops (a cut per vehicle installation).

To go further, Momenta is essentially the service provider (Party B) to automakers. As Party B, it faces two problems:

1) The issue of funding upfront development costs;

2) The issue of collecting payments after contract fulfillment.

If Momenta's technology is leading and customers flock to it, then the company should be in a typical "seller's market." Not only would its products have strong pricing power, but the payment terms for receivables would also be compressed to low levels, and vice versa.

![Image](https://pub.pbkrs.com/uploads/2026/a6c7f836fa528fe61d261deebd1b9f50?x-oss-process=style/lg)

According to the prospectus, Momenta's accounts receivable days have decreased from 148 days in 2023 to 105 days in 2025. A compression in payment terms generally means the company's bargaining power in business negotiations is rising, which is a slightly positive signal.

However, when we compare industry data, we find the situation isn't that tense.

![Image](https://pub.pbkrs.com/uploads/2026/231bb3d7336b7c27acc7bddf0aaf382e?x-oss-process=style/lg)

The chart above shows the accounts payable days of SAIC Motor, a major client (and also shareholder) of Momenta. This number was 95 days in 2023, rose to 110 days in 2024, and then dropped to 104 days. Comparing this with Momenta's data, we can draw the following views:

1) In the early days, Momenta indeed had little bargaining power. Its payment terms were nearly 2 months longer than those of typical automaker suppliers. Later, as the customer structure improved (the proportion of mature automakers like SAIC increased, stabilizing payment terms), the receivables days began to gradually decline.

2) The improvement in payment terms after 2025 relies partly on the optimization of the business model (increased proportion of technology licensing revenue) and partly benefits from calls by relevant national authorities to reduce payment terms. Of course, it also cannot be ruled out that the company actively sacrificed some revenue (e.g., reducing low-margin customization projects) to accelerate cash flow.

3) Based on current data, the client (Party A) has not given Momenta preferential treatment in terms of payment terms (Xiaomi's supplier payment terms are also 105 days).

Although Momenta, through the slogan "first physical AI stock," has given itself a new positioning, hoping to break free from the valuation limitations of being just a "smart driving company," it's hard to see superiority in business negotiation power within our Party B analysis framework.

However, we are relatively confident about Momenta's performance in 2026. On June 18th, five departments jointly released the "2026 New Energy Vehicle Rural Promotion Campaign." Favorable policies include implementing vehicle purchase tax and vessel tax reductions/exemptions, and addressing shortcomings in charging and swapping infrastructure in county areas to expand new energy vehicle consumption in rural regions.

Apart from new car-making forces, most of the selected manufacturers are traditional automakers (e.g., SAIC, GAC, FAW, Changan, Geely, etc.). The policy dividends will also be transmitted to automakers' suppliers: Momenta.

However, it should be added that the "physical AI" narrative is not entirely without substance. Its core strategy is a "flywheel" data iteration – the more vehicles equipped with its solutions, the richer the real-world road data fed back, and the faster the algorithm iteration. Therefore, its "low bargaining power" with major clients is, in a sense, a strategic compromise to acquire data assets.

The incremental shipments brought by the 2026 rural promotion policy are valuable to Momenta not only for revenue elasticity but also for scarce scenario data from lower-tier cities. While investors focus on its supplier bargaining position, they also need to track its cumulative delivery volume and the verification progress of its data closed-loop – the latter is the true source of the valuation premium for the "first physical AI stock."

$Momenta Global Limited(26257.HK)

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