CICC: Initiate Coverage on GEEKPLUS-W (02590) with Outperform Rating, Target Price of HK$32.8

Zhongjin released a research report stating that it is expected that the EPS of GEEKPLUS-W (02590) for 2025-2026 will be 0.06/0.17 yuan respectively. The bank believes that Geek+ has a leading presence in the AI smart warehousing industry with clear and distinct characteristics. The company's PS valuation is between industrial and humanoid Siasun Robot & Automation, giving the company a 10x P/S for 2026, corresponding to a target price of 32.8 Hong Kong dollars with a potential upside of 32%. It is the first time covering with an "outperform industry" rating and the bank believes the company has become a comprehensive intelligent entity with AI+ scene capabilities. Zhongjin's main points are as follows: Leading AI implementation advantage in warehousing According to Zhushizixun, the global warehouse AMR (Autonomous Mobile Robot) solution market space in 2029 may exceed a trillion yuan, with obvious advantages for Chinese companies. Combining AI, the bank believes that warehouse AMR has highly standardized, clear data accumulation, and perfect automation infrastructure, making it an important market for AI+ industrial implementation. Amazon has already launched AI basic model DeepFleet, providing guidance for the industry. Global AMR solution leader, turning point in operations has emerged Geek+ was established in 2015 and is the global leader in AMR solutions. Over 70% of its revenue comes from overseas markets. According to its prospectus, Geek+ is ranked first in the global warehouse AMR solution market in 2024, with a market share of 9%. The company achieved positive EBITDA in the first half of 2025, reaching 0.12 billion yuan, signaling the official emergence of a financial turning point in the company's operations. Domestic leader in smart warehousing new paradigm 1) Based on three proprietary technology platforms, self-developed software and hardware are used to integrate AI into warehousing path planning, supply chain optimization, digital twins, etc.; 2) Three warehouse solutions + Three scenarios provide high-performance solutions for various industries; 3) Long-term accumulation of 770 terminal customers, accumulated a large amount of operational data and historical order data, creating a data barrier for transitioning to AI; 4) Focused resource layout in intelligent bodies, has launched a general-purpose mechanical arm and intelligent body base Geek+ Brain. Potential catalysts: Company turnaround to profitability, inclusion in the Hang Seng Composite Index and Hong Kong Stock Connect.