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

Deep News12-11

CICC released a research report, forecasting GEEKPLUS-W (02590) to achieve EPS of RMB 0.06 and RMB 0.17 in 2025 and 2026, respectively. The firm believes GEEKPLUS-W holds a leading position in the AI-powered smart warehousing sector, characterized by early-mover advantages and a clear competitive landscape. Valuing the company at 10x P/S for 2026, CICC derived a target price of HK$32.8, implying a 32% upside potential. This marks the initiation of coverage with an "Outperform" rating, citing the company’s evolution into an integrated AI-driven solution provider with strong scenario-based capabilities.

**Key Highlights from CICC:**

**Pioneering AI Implementation in Warehousing** According to Frost & Sullivan, the global warehouse AMR (Autonomous Mobile Robot) solutions market is projected to exceed RMB 100 billion by 2029, with Chinese companies holding a dominant position. CICC notes that warehouse AMR systems, featuring high standardization, structured data accumulation, and mature automation infrastructure, represent a critical market for AI-industrial integration. Amazon’s recent launch of the AI foundational model *DeepFleet*, powered by generative AI, underscores industry leadership in this space.

**Global AMR Leader at an Operational Inflection Point** Founded in 2015, GEEKPLUS-W is a globally positioned AMR solutions leader, with overseas revenue accounting for over 70% in recent years. Per its IPO prospectus, the company ranked first globally in warehouse AMR solutions by revenue in 2024, capturing a 9% market share. Its EBITDA turned positive in H1 2025, reaching RMB 12 million, signaling a definitive financial turnaround.

**Domestic Trailblazer in Smart Warehousing Innovation** 1) The company’s three proprietary technology platforms enable full in-house R&D of hardware and software, laying the groundwork for AI integration in warehouse path planning, supply chain optimization, and digital twins. 2) Its three core warehousing solutions and application scenarios deliver high-performance cross-industry solutions. 3) With a long-term client base of 770 end-users, GEEKPLUS-W has amassed extensive operational and historical order data, creating a data moat for AI transformation. 4) Focused investments in embodied intelligence have yielded the universal robotic arm *Geek+ Brain* and an embodied intelligence base.

**Potential Catalysts:** Profitability turnaround, inclusion in the Hang Seng Composite Index, and eligibility for Stock Connect programs.

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