CAOCAO INC (02643) surged nearly 8% during the trading session. As of the time of writing, the stock was up 6.22%, trading at HK$32.78, with a turnover of HK$55.5874 million.

On December 30, CAOCAO INC announced the acquisition of 100% equity in Shenzhou Mobility and its intention to acquire 100% equity in Geely Business Travel.

Should these acquisitions proceed successfully, Shenzhou Mobility and Geely Business Travel will become wholly-owned subsidiaries of CAOCAO INC.

CAOCAO INC stated that upon completion of the integration, significant synergies will be unleashed on the enterprise service front, forming a one-stop technology-driven mobility platform covering both individual and corporate clients, standard and premium services, and integrating "mobility + business travel" to provide comprehensive travel and business travel services for corporate customers.

Citigroup believes that CAOCAO INC is poised to leverage Shenzhou Mobility's service network across 12 global cities and Geely Business Travel's overseas client resources to accelerate its international expansion, thereby further solidifying its market competitiveness and ecosystem integration capabilities.

Citigroup also suggests that servicing corporate clients and premium users will help increase CAOCAO INC's overall Average Revenue Per User (ARPU) and profit margin levels. These user segments are likely to exhibit higher loyalty and stickiness to the platform and may bring cross-selling synergies to CAOCAO INC's existing overall mobility business.