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

Citibank recently released its 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 24, CAOCAO INC has a potential upside of about 107.3%. At the 2026 Hong Kong Motor Show, CAOCAO INC officially announced a comprehensive AI transformation, launching its new RoboX strategy to create a leading global physical AI mobile technology platform. In Citibank's view, this move by the company to connect online AI intelligence bodies with offline AI access points lays the foundation for intelligent opportunities. As the most important commercial carrier of Geely Holdings Group's RoboX, Citibank emphasizes that the company has built three core capabilities: intelligent driving technology, mass-produced customized vehicles (with native unmanned driving design), and intelligent operating systems (covering automatic asset operation, etc.). CaoCao Robo OS, the core infrastructure supporting the strategic implementation, 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: deploying and operating 100,000 Robotaxis and 100,000 Robovans by 2030. Currently, China's first domestically developed RobotaxiEva Cabhas been officially unveiled, with CAOCAO INC deeply involved in product definition and development. The model is completely based on L4 operation scenarios, with no steering wheel or co-driver design, and is expected to begin mass production in 2027. In the freight scene, CAOCAO INC has deployed the Shen Tong T6 unmanned freight vehicle. Internationalization and ecosystem cooperation are progressing in sync. 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 formed a strategic partnership with Octopus, with both parties establishing a joint venture to upgrade the ride-hailing market in Hong Kong. In terms of ecosystem cooperation, CAOCAO INC has signed a framework agreement with Douyin Group to become the first travel scene ecosystem partner in the Douyin AI ecosystem. The two parties have launched the "AI ride-hailing" function for internal testing, allowing users to complete the entire process of calling a car through natural language interactions, and will explore deeper cooperation in more areas in the future. In terms of valuation, Citibank estimates a valuation based on a forward Price/Sales ratio of 1.0x in 2027, matching CAOCAO INC's current business scale and growth stage.