Soochow International: Initial target price for CAOCAO INC (02643) set at HK$69 with clear advantage in forward deployment of Robotaxi.

Soochow (International) released a research report stating that CAOCAO INC (02643), as the core mobility service platform within the Geely ecosystem, has built an integrated capability of "manufacturing-operation-technology" and has a clear advantage in forward-looking layout of Robotaxi. The reasonable valuation is approximately 34.2 billion RMB, with a target price of 69 HKD by the end of 2025. Key points of Soochow (International) are as follows: The research report points out that the strategic synergy between CAOCAO INC and Geely Group has formed a unique competitive advantage in the field of customized vehicles. The company's fleet of customized vehicles ranks first in the industry. Customized vehicles optimize through TCO (Total Ownership Cost) and experience upgrades, supporting the platform's core competitiveness in driver retention and user satisfaction, becoming a key driver of the company's continued growth in the ride-hailing business. The company actively lays out the future track of intelligent mobility. In February 2025, it officially launched the autonomous driving platform "Cao Cao Zhi Xing", and took the lead in launching Robotaxi operations in Suzhou and Hangzhou, marking the company's strategic extension from a traditional ride-hailing platform to the L4 level autonomous driving field. The company is gradually building up the operational capability of Robotaxi at scale and plans to launch customized vehicle models designed specifically for L4 level autonomous driving, laying the foundation for future competition in the intelligent mobility market in terms of technology and scenarios. The institution believes that as an important participant in China's shared mobility, CAOCAO INC achieves scale expansion through differentiation strategy, and its market share is expected to continue to increase. At the same time, the company's forward-looking reserve of Robotaxi technology and promotion of commercial pilot projects are expected to disrupt the industry's profit model, and the institution is optimistic about the sustainability of the company's growth in the mobility services business. The report predicts that by 2030, the total number of nationwide ride-hailing orders will increase to 15.1 billion, with the company's market share expected to rise to 12% and AOV (average order value) to increase to 30 RMB. It is estimated that Robotaxi orders and manned ride-hailing orders will account for 20% and 80% respectively, with estimated net profit margins of approximately 17% and 5% for the corresponding business. The company's overall reasonable valuation is estimated to be approximately 34.2 billion RMB, with a target price of 69 HKD by the end of 2025 (exchange rate based on 0.9090 HKD/RMB on the day of August 8, 2025). CAOCAO INC was listed on the main board of the Hong Kong Stock Exchange on June 25th and became the largest technology mobility platform in the Hong Kong stock market, with an issue price of 41.94 HKD. After listing, the stock price of CAOCAO INC steadily rose, closing at 60.3 HKD per share on August 13th, a 44% increase compared to the IPO issue price. Earlier, JPMorgan predicted that CAOCAO INC is expected to be included in the Hong Kong stock connect list on September 8th, allowing mainland investors to participate in trading, which is expected to bring significant incremental capital.