CICC Initiates Coverage on GEEKPLUS-W (02590) with "Outperform" Rating, Sets Target Price at HK$32.8

Stock News12-08

CICC has initiated coverage on GEEKPLUS-W (02590), projecting its 2025-2026 EPS at RMB 0.06 and RMB 0.17, respectively. The firm highlights GEEKPLUS-W as a leader in AI-powered smart warehousing, citing its scenario-specific advantages, clear competitive positioning, and stable business model. With AI integration elevating growth potential, the company’s PS valuation sits between industrial and humanoid robotics sectors.

Using a comparable valuation approach, CICC assigns a 10x P/S multiple for 2026, deriving a target price of HK$32.8—implying 32% upside—and an inaugural "Outperform" rating. Diverging from market consensus, CICC views GEEKPLUS-W as an integrated AI-driven player with strong scenario-based capabilities. Key insights include:

**Leading AI Adoption in Warehousing** Per CIC data, the global warehouse AMR (autonomous mobile robot) solutions market could exceed RMB 100 billion by 2029, with Chinese firms holding a clear edge. CICC notes AMR’s high standardization, robust data accumulation, and mature automation infrastructure make it a prime AI+industrial application. Amazon’s generative AI model, DeepFleet, exemplifies industry leadership.

**Global AMR Leader at Inflection Point** Founded in 2015, GEEKPLUS-W dominates the AMR solutions space with over 70% revenue from overseas. Its 2024 warehouse AMR solutions ranked first globally by revenue (9% market share per prospectus). EBITDA turned positive in H1 2025 (RMB 12 million), signaling a financial inflection.

**Pioneering Smart Warehousing in China** 1) Proprietary tech platforms enable full-stack R&D, facilitating AI integration in path planning, supply chain optimization, and digital twins. 2) Three warehousing solutions + three scenarios deliver cross-industry high-performance systems. 3) A base of 770 end clients provides vast operational data, creating an AI-transformation moat. 4) Strategic focus on embodied intelligence, including the Geek+ Brain platform and universal robotic arms.

**Catalysts**: Profitability turnaround, potential inclusion in Hang Seng Composite Index and Stock Connect.

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