Financial analysts at Citigroup have issued a research note reaffirming their 'Buy/High Risk' rating on CAOCAO INC (02643) and maintaining a target price of HK$51.

The bank's assessment indicates that despite the industry entering a seasonally slower period in the first half of 2026, leading to a moderated growth rate for CAOCAO INC, the company's expansion pace remained approximately double the industry average. The firm has also upheld its full-year operational targets and performance guidance.

According to the report, management at CAOCAO INC stated that the company achieved a preliminary year-on-year improvement in both gross profit and net profit for the first six months of 2026. Its core ride-hailing business continued to outperform the broader market, and it is projected to maintain a growth rate more than double the industry average for the full year. The second half is viewed as the critical phase for achieving the annual operational objectives.

Management further noted that collaboration with Doubao is progressing steadily. Last month, CAOCAO INC entered into a strategic partnership with ByteDance, becoming the inaugural mobility scenario partner within Doubao's AI ecosystem.

Citigroup's perspective is that as AI increasingly becomes a new traffic gateway, AI-powered ride-hailing services have the potential to open up new user acquisition channels for CAOCAO INC. In the long term, this could assist the company in reducing its commission rate to a level below that charged by aggregated platforms, thereby further enhancing platform profitability.

The bank maintains a positive outlook on the RoboX strategy unveiled by CAOCAO INC in June this year. Previously announced, this strategy positions the company as the primary commercialization vehicle for Geely Holding Group's RoboX initiative. It focuses on three core elements: intelligent driving technology, intelligent custom vehicles, and intelligent operations, aiming to comprehensively advance the RoboX business layout and establish an intelligent transport capacity system covering scenarios such as Robotaxi and Robovan.

The report highlights that the RoboX strategy is not solely focused on Robotaxi but is also designed to propel the company's evolution from a traditional ride-hailing platform into an integrated physical mobility service platform encompassing both passenger and freight transport. This shift represents an extension from mobility services to a broader mobile service ecosystem, unlocking new avenues for long-term growth.

Citigroup concludes that while the core business continues to improve profitability, the application of AI and the RoboX strategy are emerging as significant drivers for CAOCAO INC's future growth. Consequently, the bank reiterates its 'Buy/High Risk' rating with a HK$51 price target.