Soochow has given CAOCAO INC (02643) a "buy" rating and is expected to officially be included in the Hong Kong Stock Connect on September 8th.

On September 5th, Soochow released the first coverage research report on CAOCAO INC (02643), giving it a "buy" rating. The report pointed out that in the Robotaxi business, CAOCAO INC is a rare integrated platform in China that combines "vehicle, operation, and technology", and is expected to achieve a breakthrough with its reliance on Geely's vehicle manufacturing capability, Qianli's autonomous driving technology, and rich operational experience. The Chinese online ride-hailing market is undergoing a profound transformation from "barbaric growth" to "compliant intelligence". Its core contradiction is no longer the early stage of capital subsidies and traffic competition, but has shifted towards the institutional reconstruction of autonomous driving technology and the relationship between humans and vehicles. With the breakthrough of L4 level autonomous driving technology by Robotaxi, the hardware costs continue to decrease, the policy system is increasingly perfect, and the commercialization of technology is accelerating. With the support of Geely Group, CAOCAO INC will become an integrated Robotaxi platform of "vehicle + operation + technology", and is expected to replicate the successful experience of online ride-hailing to achieve the most optimal solution for the Robotaxi system. In February 2025, CAOCAO INC held the online ceremony for the launch of the "CAOCAO Intelligent Driving" platform, announcing the successful construction of the first self-developed closed-loop intelligent driving ecosystem in China. The first batch of vehicles selected the Lynk Z10, which is built based on the latest generation of intelligent SEA vast architecture, with high flexibility and intelligence. The Robotaxi pilot service has been launched in Suzhou and Hangzhou. Soochow analysts predict that the company's revenue from 2025 to 2027 will be 20.67/26.24/32.37 billion yuan, with year-on-year growth rates of 41.0%/26.9%/23.4%. The current market value corresponds to PS ratios of 1.9/1.5/1.2 respectively (as of September 4, 2025). The gross profit margin is expected to steadily increase as the operating pace slows down, dual-end subsidies decrease, and economies of scale are released, with the net profit attributable to shareholders for 2025-2027 being -1.1/-2.7/8.9 billion yuan, and is expected to turn positive in 2027. Based on the steady development of online ride-hailing business and the broad space for Robotaxi business, the first coverage gives a "buy" rating. CAOCAO INC was listed on the main board of the Hong Kong Stock Exchange on June 25, 2025, becoming the largest technology travel platform in the Hong Kong stock market. On August 22, the company was selected by the Hang Seng Index Company to be included in the components of the Hang Seng Composite Index. It is widely expected that CAOCAO INC will be officially included in the Hong Kong Stock Connect on September 8, attracting incremental funds from the mainland.