CITIC Securities recently published a research report initiating coverage on CAOCAO INC (02643) with a “Buy” rating and a target price of HKD 73. The report highlights that as the second-largest ride-hailing platform in China, CAOCAO INC is demonstrating significant growth potential and monetization capacity, owing to its deep integration in the shared mobility sector and pioneering efforts in autonomous driving technology.

CITIC Securities forecasts that the company's revenue will reach RMB 21.39 billion, RMB 27.09 billion, and RMB 33.85 billion from 2025 to 2027, with year-on-year growth rates of 45.9%, 26.6%, and 24.9% respectively, and anticipates that the company will turn profitable by 2026. According to the report, CAOCAO INC holds a 5.4% market share in China’s ride-hailing market in 2024, securing the second position in the industry, with a growth rate significantly outpacing the market average.

For the first half of 2025, revenue is projected at RMB 9.5 billion, reflecting a substantial year-on-year growth of 53.5%. In terms of order scale, the monthly active driver count reached 554,000 in the first half of 2025, marking a 53.5% increase year-on-year, while the number of monthly active users rose to 38.1 million, a 57.4% increase year-on-year. The balanced growth on both supply and demand sides lays a solid foundation for the company’s ongoing expansion.

CAOCAO INC has made significant strides in cost control and operational efficiency. By promoting customized electric vehicles, the company has effectively reduced the total cost of ownership (TCO). Data show that the cost per kilometer for electric vehicles is only RMB 0.8, 30% lower than that of traditional gasoline vehicles. As of the end of June 2025, CAOCAO INC had deployed over 37,000 customized vehicles across 31 cities, with related order GTV reaching RMB 2.5 billion, representing a 34.7% increase compared to the same period last year.

Moreover, the company’s gross margin increased from 5.1% in 2024 to 8.4% in the first half of 2025, while its operational loss margin has significantly narrowed, indicating a continuous improvement in profitability. In the intelligent driving sector, CAOCAO INC has been among the first to launch Robotaxi pilot services, initiating relevant tests in February 2025 and planning to introduce customized vehicles supporting Level 4 autonomous driving by the end of 2026.

CITIC Securities believes that with Geely Group’s extensive experience in the driving industry and CAOCAO INC's data accumulation, the company is building an end-to-end ecosystem comprising “customized vehicles - intelligent driving systems - service operations,” positioning itself favorably for future mobility transformation. As the shared mobility market moves towards digitization and regulatory compliance, CAOCAO INC's strategic explorations could provide a significant model for the industry. The target price of HKD 73 reflects a 51% upside from the company’s stock price of HKD 48.32 at the time of the report’s release.