Citi maintains a "buy" rating on CAOCAO INC (02643), with a target price of HK$51. The RoboX strategy brings incremental space.

Citigroup recently released the latest research report, maintaining a "buy" investment rating for CAOCAO INC (02643) with a target price of 51 Hong Kong dollars. Based on the closing price of 24.6 Hong Kong dollars on June 24th, CAOCAO INC has a potential upside of approximately 107.3%. At the 2026 Hong Kong Car Show, CAOCAO INC officially announced a full AI transformation, launching the new RoboX strategy to create a leading global physical AI mobile technology platform. Citigroup believes that this move allows the company to connect online AI intelligence with offline AI access, positioning itself in the intelligent mobility opportunity. As the most important commercial carrier of Geely Holding Group's RoboX, Citigroup emphasizes that the company has built three core capabilities: intelligent driving technology, mass production of customized vehicle models (with native autonomous driving design), and intelligent operation systems (including automated asset operations). The core infrastructure supporting the strategy implementation, CaoCao Robo OS, will be used to connect online demand with offline service networks, covering intent recognition, scene arrangement (such as in-car AI entertainment and multi-scene modes) and fulfillment infrastructure. As a strategic goal of RoboX, CAOCAO INC has proposed the "Double 100,000" plan: to deploy and operate 100,000 Robotaxis and 100,000 Robovans by 2030. Currently, China's first native-developed Robotaxi, Eva Cab, has officially debuted, with deep involvement from CAOCAO INC in product definition and development. The vehicle is fully developed for L4 operating scenarios, featuring no steering wheel and no co-pilot design, and is expected to begin mass production in 2027. In the freight scenario, CAOCAO INC has deployed the genius T6 unmanned freight vehicle. Internationalization and ecological cooperation are progressing simultaneously. CAOCAO INC plans to launch ride-hailing and Robotaxi services in Hong Kong in 2026 as the first step in its internationalization strategy. In addition, CAOCAO INC has entered into a strategic partnership with Octopus to establish a joint venture company and upgrade the ride-hailing market in Hong Kong. In terms of ecological cooperation, CAOCAO INC has signed a cooperation framework agreement with Douyin Group, becoming the first travel scenario ecological partner of Douyin AI ecology. The two parties have initiated the internal testing of the "AI-hailing" feature, allowing users to complete the booking process through natural language interaction, and will explore deeper cooperation in more areas in the future. In terms of valuation, Citigroup estimates based on a forecasted market-to-sales ratio (P/S) of 1.0 in 2027, matching the current business scale and growth stage of CAOCAO INC.