Core Viewpoint - CITIC Securities has initiated coverage on Cao Cao Mobility (02643) with a "Buy" rating and a target price of HKD 73, highlighting the company's significant growth potential and monetization opportunities in the ride-hailing market due to its deep market penetration and advancements in autonomous driving technology [1][2] Group 1: Financial Performance - The company is projected to achieve revenues of CNY 213.92 billion, CNY 270.91 billion, and CNY 338.45 billion from 2025 to 2027, representing year-on-year growth rates of 45.9%, 26.6%, and 24.9% respectively [1] - In the first half of 2025, the company's revenue reached CNY 9.5 billion, with a year-on-year increase of 53.5% [1] - The gross margin improved from 5.1% in 2024 to 8.4% in the first half of 2025, indicating a significant enhancement in profitability [2] Group 2: Market Position and Growth - Cao Cao Mobility holds a 5.4% market share in China's ride-hailing market, ranking second, with growth rates significantly exceeding the industry average [1] - The platform's monthly active driver count reached 554,000 in the first half of 2025, up 53.5% year-on-year, while monthly active users increased to 38.1 million, reflecting a 57.4% growth [1] Group 3: Cost Control and Operational Efficiency - The company has effectively reduced total cost of ownership (TCO) by promoting customized electric vehicles, with the cost per kilometer for electric vehicles at CNY 0.8, which is 30% lower than traditional fuel vehicles [2] - As of June 2025, over 37,000 customized vehicles have been deployed across 31 cities, with related order GTV reaching CNY 2.5 billion, a 34.7% increase year-on-year [2] Group 4: Technological Advancements - Cao Cao Mobility has initiated Robotaxi pilot services and plans to launch customized vehicles supporting Level 4 autonomous driving by the end of 2026 [2] - The company is building an end-to-end ecosystem of "customized vehicles - intelligent driving systems - service operations," leveraging its partnership with Geely Group and its operational data [2] Group 5: Strategic Outlook - The strategic exploration of Cao Cao Mobility in the intelligent and compliant shared mobility market may provide a significant paradigm for the industry [2] - The target price of HKD 73 represents a 51% upside potential from the stock price of HKD 48.32 at the time of the report's release [2]