Key Takeaways:
CITIC Construction Investment initiated coverage on Cao Cao Mobility (02643.HK) with a “Buy” rating, after the ride-hailing firm’s revenue grew 37.7 percent in 2025 and it achieved its first quarterly profit.
"The results show a significant improvement in operational efficiency and profitability," the CITIC research report published April 29 said. The firm did not provide a price target for the stock.
The report highlighted Cao Cao Mobility’s 2025 revenue of 2.02 billion yuan, a 37.7 percent increase from the previous year. The company’s Non-GAAP net loss narrowed by 29.8 percent for the full year, and it recorded its first-ever positive adjusted net profit in the fourth quarter. Gross margin for the year improved to 9.4 percent.
The firm’s positive outlook is partly based on the company’s "Caocao Brain" AI system, which CITIC said has been crucial in reducing costs and improving efficiency. This technology has supported a 43.9 percent year-over-year increase in monthly active users and an expansion of services to 195 cities. The report also pointed to the company’s recent acquisition of StarRides and its development of L4 Robotaxi technology as key drivers for future commercialization and growth.
The new "Buy" rating may boost investor confidence in the Hong Kong-listed company. Investors will be watching for continued margin improvement and further details on the integration of StarRides and the timeline for the Robotaxi deployment.
This article is for informational purposes only and does not constitute investment advice.
