HTSC recently published its inaugural research report on CAOCAO INC (02643), assigning a "Buy" rating with a target price of HK$100.4. The report highlights that CAOCAO INC, leveraging its deep expertise in ride-hailing services and breakthrough potential in Robotaxi operations, is reshaping the industry landscape from the "supply side" and is expected to achieve profitability and enter a growth trajectory by 2026.
The report emphasizes that CAOCAO INC's core competitive advantage stems from its standardized customized vehicle fleet, which significantly differentiates it from existing market participants. While some argue that Caocao lags behind certain domestic companies in Robotaxi development, HTSC points out that Robotaxi competition essentially involves a comprehensive comparison of technological and operational capabilities. CAOCAO INC demonstrates long-term competitiveness in this field through total cost of ownership (TCO) optimization and solid operational experience.
Through synergy with Geely Holding Group, CAOCAO INC actively participates in vehicle design and has developed a complete automotive service solution, significantly reducing TCO while enhancing operational efficiency. The company continues to optimize user experience through unified service standards and enhanced vehicle intelligence levels. As of June 30, 2025, CAOCAO INC has deployed 37,000 customized vehicles nationwide, becoming the largest fleet of its type in the country.
On February 28, 2025, CAOCAO INC launched its autonomous driving platform "Caocao Smart Travel" and initiated Robotaxi pilot services in Suzhou and Hangzhou. The report believes the company has advantages in developing and deploying next-generation Robotaxi vehicles. As one of China's largest ride-hailing platforms, CAOCAO INC has extensive experience in managing and servicing large fleets, and as a member of the Geely ecosystem, it can support cost-effective large-scale Robotaxi commercialization.
Currently, Caocao is collaborating with Geely Group to advance a customized vehicle model specifically designed for L4 autonomous driving. This vehicle will be pre-equipped with autonomous driving components, feature low TCO characteristics, and support long-term stable operations, with an official launch planned for the end of 2026.
In terms of valuation, HTSC referenced global mobility platform average valuations and considered CAOCAO INC's rarity in the customized vehicle sector, assigning a 2026 price-to-sales ratio of 1.8x, corresponding to a market value of HK$54.7 billion and a target price of HK$100.4.
CAOCAO INC went public on the Main Board of the Hong Kong Stock Exchange on June 25, 2025, becoming the largest technology mobility platform in the Hong Kong stock market. On August 22, the company was included as a constituent stock of the Hang Seng Composite Index by Hang Seng Indices Company. Market expectations widely anticipate that CAOCAO INC will be included in Stock Connect on September 8, which is expected to attract more mainland capital attention.