DBS Initiates Coverage on ECARX, Highlighting Global Expansion and Path to Profitability
DBS Group Research has initiated coverage on ECARX Holdings Inc. (Nasdaq: ECX) $亿咖通(ECX)$ , a global mobility technology provider, citing its expanding global partnerships, improving earnings visibility, and clear roadmap toward profitability.
According to DBS Group Research, ECARX’s fair value is US$2.80 per share, based on a 1.1x FY2025F/2026F forward EV/sales multiple, representing a discount compared to peers’ median of 1.7x, reflecting confidence in the company’s fundamentals and operational execution.
DBS Group Research highlights ECARX’s international expansion momentum, underpinned by new design wins and long-term programs with major global automakers, including a key partnership with Volkswagen Group set to commence in FY2026, with initial launches in Brazil and India. The company’s global orderbook of approximately US$1 billion (RMB 7 billion) provides strong revenue visibility, with management targeting overseas revenue contribution to reach 50% of total revenue by 2030.
Beyond its growing international footprint, ECARX continues to strengthen its core business with Geely Group, its anchor customer. ECARX supplies over 60% of Geely’s total computing units across key brands such as Galaxy, Lynk & Co, and Volvo, supporting the rollout of Geely’s G-Pilot advanced driver assistance system (ADAS) from 2025 onward, a key driver of volume growth.
DBS Group Research notes that ECARX’s competitive advantage lies in its in-house system-on-chip (SoC) design, vertical integration through its SiEngine joint venture, and global automotive software capabilities, including its proprietary GAS (Google Automotive Services) integration platform. ECARX recently published a white paper demonstrating that its GAS automotive suite reduces system integration time by over 50%, underscoring its strength in global software adaptability.
At the same time, the company continues to build its manufacturing and supply chain execution to support next-generation intelligent vehicle solutions worldwide. ECARX is ranked as China’s fourth-largest cockpit domain controller (DCU) supplier with approximately 7% market share. The company is targeting adjusted EBITDA breakeven in 2H2025 and full-year profit breakeven in FY2026, driven by new program launches and operational efficiency.
According to DBS Group Research, key growth catalysts for ECARX include the ramp-up of new design wins, the execution of global programs such as Volkswagen, and the company’s steady progress toward profitability. Potential risks cited include a slowdown in auto sales and intensifying competition within the smart vehicle technology sector.
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