CICC: maintains a "outperform" rating on CAOCAO INC (02643) with a target price of HK$70.

CICC released a research report stating that they are optimistic about CAOCAO INC (02643) as it relies on the full chain support formed by Geely's ecosystem, has mature experience in travel services, and a complete operation system, possessing core elements for the development of autonomous driving. The bank maintains its revenue forecast for 2025/2026 at 21/25.4 billion yuan, maintains an outperform rating, uses the PE method, based on a 35 times forward P/E ratio discounted to 2028 (equity cost coefficient of 9.5%) back to 2025, maintains a target price of 70 Hong Kong dollars, with an upward potential of 53%. CICC's main viewpoints are as follows: Company Recent Developments On December 3, 2025, CAOCAO INC held a Robotaxi strategic upgrade conference in Hangzhou, at which CICC was invited to attend. The company's management announced Robotaxi 2.0, setting a strategic goal of "ten years, one hundred cities, one hundred billion", releasing the first "green smart passage island", dedicated to building multifunctional integrated transportation hubs, and accelerating the commercialization of Robotaxi. Establishing a "Three-Step" Strategy, and the "Ten Years, One Hundred Cities, One Hundred Billion" Strategic Goal The company believes that the development of Robotaxi needs to go through three stages, initially focusing on technology verification and small-scale testing to solidify the foundation of autonomous driving; the current stage is about transitioning from manned safety drivers to unmanned operations, exploring a hybrid operation mode of manned and unmanned, and optimizing service efficiency through technological iteration; the third stage will start commercial operations based on customized Robotaxi models. CAOCAO INC has put forward the strategic goal of "ten years, one hundred cities, one hundred billion", aiming to build five major operational centers in the next 10 years, achieve Robotaxi service coverage in 100 cities, and accumulate GTV of 100 billion yuan. Entering the Robotaxi 2.0 phase, the company plans to strengthen the automation level of large-scale fleets On one hand, it will officially launch the CAOCAO Intelligent Ras remote safety service platform, and on the other hand, it will fully implement a digital asset management system, combining its mature operational advantages with intelligent cabins and intelligent driving technology to build a complete closed loop for unmanned Robotaxi operations. CAOCAO INC deeply synergizes with Geely's ecosystem, constructing a development model of "intelligent customized vehicles + intelligent driving + intelligent operations" Geely empowers with technological ecosystem, providing support for the research and development and manufacturing of electric intelligent vehicles, computational power algorithms, data, and a nationwide service network, making CAOCAO INC the core carrier for exploring future travel; CAOCAO INC has signed a strategic cooperation agreement with Qianli Zhijia to deepen cooperation in intelligent driving technology, leveraging the advantages of both sides to accelerate the application of autonomous driving technology on a larger scale.