Citigroup has issued a new research report, maintaining its "Buy" investment rating on CAOCAO INC (02643) and setting a target price of HK$51. Based on the closing price of HK$24.6 on June 24, this implies a potential upside of approximately 107.3%.

Strategic AI Transformation and RoboX Initiative

At the 2026 Hong Kong Auto Show, CaoCao officially announced a comprehensive AI transformation, unveiling its new RoboX strategy aimed at building a world-leading physical AI mobility technology platform. Citigroup views this move as the company's strategy to capture embodied intelligence opportunities by connecting online AI agents with offline AI entry points. As the most important commercial vehicle for Geely Holding Group's RoboX initiative, Citigroup emphasizes that CaoCao has established three core capabilities: intelligent driving technology, mass-produced custom vehicle models (with native unmanned design), and an intelligent operating system (encompassing automated asset operations, among other functions).

The core infrastructure supporting the strategy's implementation is the CaoCao Robo OS, which will be used to connect online demand with the offline service network, covering intent recognition, scenario orchestration (such as in-car AI entertainment and multi-scenario modes), and fulfillment infrastructure.

Ambitious Deployment Targets

As part of the RoboX strategic objectives, CaoCao has proposed a "Dual 100,000" plan: targeting the deployment and operation of 100,000 Robotaxis and 100,000 Robovans by 2030. Currently, China's first natively developed Robotaxi, the Eva Cab, has been officially unveiled, with CaoCao deeply involved in its product definition and R&D. This model is fully forward-developed based on L4 operational scenarios, featuring a design without a steering wheel or passenger seat, and is expected to begin mass production in 2027. On the freight scenario side, CaoCao has already deployed the Shentong T6 unmanned freight vehicle.

International Expansion and Ecosystem Partnerships

Internationalization and ecosystem cooperation are advancing simultaneously. CaoCao plans to launch ride-hailing and Robotaxi services in Hong Kong in 2026 as the first step in its internationalization strategy. Furthermore, CaoCao has entered into a strategic partnership with Octopus Cards, with both parties establishing a joint venture to upgrade Hong Kong's ride-hailing market. In terms of ecosystem collaboration, CaoCao has signed a cooperation framework agreement with ByteDance Group, becoming the first mobility scenario ecosystem partner for the Doubao AI ecosystem. The two sides have initiated internal testing of the "AI Ride-Hailing" feature, allowing users to complete the entire ride-hailing process through natural language interaction, with plans to explore deeper cooperation in more areas in the future.

Valuation Perspective

Regarding valuation, Citigroup's assessment is based on a projected 2027 price-to-sales (P/S) ratio of 1.0x, which it considers appropriate given CaoCao's current business scale and growth stage.