On August 22, CAOCAO INC (02643) was selected by Hang Seng Indices Company for inclusion as a constituent stock of the Hang Seng Composite Index, with the change taking effect on September 8, 2025. Previously, multiple institutions including JPMorgan Chase and Huatai Securities had predicted that CAOCAO INC would likely be included in the Stock Connect trading scope on September 8. Several institutions including Shenwan Hongyuan and Zheshang Securities have also given CAOCAO INC a "Buy" rating, with target prices reaching as high as HK$103.17.
Since its listing on the Hong Kong Stock Exchange on June 25, 2025, CAOCAO INC's stock price has continued to climb. Zheshang Securities believes that the company, leveraging the Geely ecosystem, has secured a stable position as the second-largest player in the ride-hailing industry. The "customized vehicles + autonomous driving + mobility platform" Robotaxi trinity ecosystem closed loop has taken shape, positioning the company to seize first-mover advantages in the upcoming Robotaxi commercialization wave and unlock medium to long-term valuation potential.
As of the end of 2024, CAOCAO INC's platform had approximately 1.5 million active vehicles, completing an annual GTV of approximately 17 billion yuan. The company's operational network covers 136 cities nationwide, entering 85 new cities through an asset-light model by selling customized vehicles to local capacity partners and incentivizing them to provide mobility services on the CAOCAO INC platform.
The company has opened up full industry chain ecosystem cooperation, with over 1,000 partners across all modes by the end of 2024. Partner revenue increased 34% year-over-year, with plans to open 200 new cities in 2025.
In terms of cost control and operational efficiency, CAOCAO INC leverages the Geely ecosystem to launch pure electric vehicle models specifically customized for shared mobility scenarios. By the end of 2024, the company had deployed 34,000 customized vehicles across 31 core cities, ranking first among similar fleets in scale. The customized vehicle models have a TCO (Total Cost of Ownership) that is 36% lower than typical pure electric vehicles, with scale benefits gradually emerging, driving the 2024 gross margin improvement to 8.1% and continued enhancement of profitability.
The Robotaxi business is viewed as the company's largest future growth engine. In February 2025, the "CAOCAO Smart Mobility" autonomous driving platform officially launched and has begun pilot operations in Suzhou and Hangzhou. The company is collaborating with Geely to develop L4-level Robotaxi customized vehicle models, with expectations that this vehicle type's TCO will be significantly lower than industry peers.
According to Frost & Sullivan forecasts, China's Robotaxi market size will climb to 1.6 trillion yuan by 2035. CAOCAO INC is positioned to capitalize on industry expansion benefits through its full industry chain closed-loop advantages of "customized vehicles + autonomous driving + mobility platform."
Zheshang Securities projects CAOCAO INC's operating revenue for 2025-2027 at 19.7 billion, 25.6 billion, and 30 billion yuan respectively, representing a compound growth rate of 27%. EBIT is expected to turn positive for the first time in 2026, with comprehensive profitability achieved in 2027. The current valuation level is significantly lower than international peers, presenting clear attractiveness.