On July 8th, Momenta was listed on the Hong Kong Stock Exchange, defined as the largest IPO in the history of Hong Kong stocks for autonomous driving and physical AI.

According to the final listing results, the issue price was HKD 295.6, and if the overallotment option is fully exercised, the total fundraising amount will reach HKD 6.8 billion, with a market value exceeding HKD 70 billion on the first day of trading. The market enthusiasm exceeded expectations, with the Hong Kong public offering oversubscribed by 413.6 times, and the total orders from international institutions exceeding HKD 100 billion. A cornerstone lineup of 14 top institutions was formed, including Singapore's GIC, Fidelity International, BlackRock, Temasek, Mercedes-Benz, and BYD, with cornerstone investments nearing HKD 3 billion.

Many people only see the excitement of the listing, but several official financial report data reveal its fundamentals: From 2023 to 2025, Momenta's revenue is expected to grow from HKD 743 million to HKD 2.413 billion, with a compound annual growth rate exceeding 80%, and gross profit margin increasing from 17.5% to 71.6%; just before the listing, the number of mass-produced vehicles exceeded 1 million, and partnerships were established with 9 of the top 10 global automakers, with more than 210 designated models. The company's fundraising plan is clear, with 60% of the funds allocated to physical AI and autonomous driving research and development, and the remaining funds used for commercialization.

Through this significant IPO, three layers of industry truths are worth understanding:

First, the capital market officially recognizes physical AI, breaking free from pure conceptual labels.

Traditional large models are limited to the cloud digital world, while physical AI relies on world models to enable machines to understand the real environment, with autonomous driving being the first scenario for physical AI to land. The large-scale entry of overseas sovereign funds and international asset management indicates that global capital no longer views autonomous driving as just a story, but recognizes the technological strength of China's physical AI.

Second, third-party intelligent driving manufacturers welcome a golden development opportunity.

In the past, automakers preferred to develop autonomous driving systems in-house, but now Mercedes-Benz and BYD are actively investing in Momenta. Automakers are gradually realizing that the cost of in-house development is too high, and choosing to collaborate with leading third-party algorithm companies has become the mainstream approach, providing a development window for third-party intelligent driving manufacturers.

Third, opportunities come with real challenges, and long-term profitability remains a test.

Although revenue is growing rapidly, Momenta has not yet achieved overall net profit positivity at this stage, and high R&D investment remains the norm. In the future, it will not only need to excel in algorithm development but also continuously expand its customer base and control implementation costs. Whether it can achieve stable profitability will be the biggest test going forward.

In conclusion: Momenta's successful listing marks the entry of China's autonomous driving and physical AI into a new stage of capitalization. In the short term, top institutions are clustered around optimistic views of the sector; in the long term, distinguishing the true implementation scale of companies from thematic concepts is the key that ordinary investors need to grasp Do you think more physical AI listed companies will emerge in the domestic market? Share your thoughts in the comments section