Smartkarma (02590) included in Hang Seng Index: Continuously ranked first in global market share for 7 years, accelerating commercialization of physical AI

On December 8th, Geek+ (02590) will officially be included in the Hang Seng Composite Index. This not only signifies the capital market's recognition of its technological and commercial strength but also confirms China's Siasun Robot&Automation industry's global competitiveness. From starting in Beijing to serving over 40 countries worldwide, from warehouse Siasun Robot&Automation to being a driver of physical AI, and consecutively being the number one enterprise in the global autonomous mobile Siasun Robot&Automation (AMR) market for seven years, Geek+'s journey is not only a process of continuously building technological barriers but also a typical example of the upgrade of China's tech companies' internationalization model. "AI Godmother," member of the US National Academy of Engineering Fei-Fei Li believes that spatial intelligence is the "next frontier" for AI, and Geek+ as the core target of the physical AI industry chain, its value has surpassed the traditional scope of a Siasun Robot&Automation company. This company is addressing a crucial question: how can Chinese AI and Siasun Robot&Automation technologies achieve scalable implementation and commercial value realization in the global market. From full-stack AI to embodied intelligence, building a solid physical AI moat Geek+'s core competitiveness is rooted in its full-stack AI technology architecture spanning "algorithm-hardware-system." In the field of warehouse automation, the ability for large-scale multi-robot coordination is one of the key indicators of a company's technological prowess. Geek+'s self-developed Hyper+ core algorithm platform can support over 5000 Siasun Robot&Automation robots working in a single warehouse simultaneously, far exceeding the industry average and becoming the "technical backbone" for undertaking large-scale warehouse projects globally. In early 2023, Bloomberg reported that South Korean e-commerce giant Coupang and Geek+ collaborated on a thousand-robot warehouse, enhancing warehouse operation efficiency, all made possible through the precise planning and task allocation by the Hyper+ algorithm. More forward-looking is Geek+'s deep deployment from warehouse Siasun Robot&Automation solutions to embodied intelligence. The "unmanned picking workstations" released globally in October 2025, utilizing the self-developed embodied intelligence base model Geek+ Brain, builds a "perception-strategy" layered architecture capable of handling tens of thousands of SKUs without needing post-training for complex category adaptation. This full-chain closed-loop capability of "virtual decision-making-physical execution" makes Geek+ the "core target of integrated manufacturers in the physical AI industry chain" in the eyes of institutions like Shenwan Hongyuan Group, driving the practical application of physical AI and the realization of commercial value. Receiving multi-billion-dollar contracts, business value entering the realization period The capital market's recognition of Geek+ is not only due to its technological advancement but also because of its strong ability to transform technology and globalization advantages into commercial value. Recently, Geek+'s performance in global markets has been particularly eye-catching, securing several multi-billion-dollar contracts, including one from a major South Korean e-commerce company exceeding 300 million RMB. These large contract sizes not only demonstrate the stability and technological barriers of its solutions in super-large-scale scenarios but also reflect customer trust. A high customer repurchase rate is another important proof of its industrial competitiveness. In the first half of 2025, Geek+ achieved an overall customer repurchase rate exceeding 80%, with key customer repurchase rate reaching as high as 84.3%, far exceeding the industry average of around 50%. From global logistics giants like GXO, DHL, to European pharmaceutical leader Dr. Max, and sports brand PUMA, they have all become long-term partners with Geek+. Taking the example of American apparel company S&S Activewear, within just three years, the company has repurchased goods five times, expanding Geek+'s Siasun Robot&Automation network from a single warehouse to five major logistics centers across the United States, demonstrating the "continuous repurchase" and "expansion of scale." This positive cycle of "project success-customer repurchase-industry benchmark" builds Geek+'s strong customer barriers that are hard to replicate. Solid global market achievements and high customer stickiness drive the continuous realization of Geek+'s business value. With a revenue of 2.41 billion RMB in 2024, Geek+ ranked first in the Siasun Robot&Automation sector of the Hong Kong stock market. In the first half of 2025, revenue grew by 31% year-on-year to 1.025 billion RMB, continuing to lead the sector, and crucially, adjusted EBITDA turned positive for the first time, marking the company's entry into a profitable turning point in its business model. Numerous well-known institutions are optimistic about its commercial strength and future growth potential. Bank of America Merrill Lynch expects Geek+ to achieve profitability this year and predicts a 55% year-on-year increase in earnings per share by 2028. Daiwa Securities research report points out that Geek+'s US orders are growing at the fastest rate, accounting for over 30% of the total order amount. The increase in the contribution of the US market to sales is expected to support the gross margin in 2026. This data is significant: Chinese tech companies are achieving value recognition in the most technologically challenging and competitive US market. With a valuation below the industry's central level, institutions see a doubling of target prices From a financial perspective, Geek+ being included in the Hang Seng Composite Index will serve as a key catalyst for improving its liquidity. In the short term, expectations of passive fund inflows combined with long-term investment demand are expected to drive stock price valuation recovery. According to the rules of the Hang Seng Index Company, after being included in the Hang Seng Composite Index, Geek+ will automatically enter the list of potential stock picks for the Hong Kong Stock Connect, and based on historical experience, the probability of being included in the Hong Kong Stock Connect within 3-6 months after joining the Hang Seng Index is over 80%. From a valuation perspective, Geek+'s current stock price corresponds to a valuation level significantly lower than the global tech and Siasun Robot&Automation sector averages, with significant upside potential compared to institutional target prices. As of December 5, 2025, the company's stock price was 24.80 Hong Kong dollars, corresponding to a price-to-sales ratio (PS) of only 10.39 times. This valuation is not only lower than that of the German industrial vehicle and supply chain solutions provider, Kion Group (around 18 times PS), American warehouse automation company Symbotic (around 15.7 times PS), American mobile Siasun Robot&Automation enterprise Fetch Robotics (around 22 times PS), but also lower than the average PS valuation midpoint of 15 times in the Hong Kong tech sector. Several leading institutions have given optimistic valuation expectations. Daiwa Securities maintains a "buy" rating, viewing Geek+ as the "leader in global warehouse automation mobile Siasun Robot&Automation solutions," with a target price of 38 Hong Kong dollars, representing a 53% increase compared to the current stock price; Bank of America Securities states that the company has adopted a "hardware + services" dual-drive model, and this recurrent income structure will support a premium valuation. They expect the valuation to approach 15 times PS by 2026 and have given a target price of 33 Hong Kong dollars; Morgan Stanley suggests that based on Geek+'s positioning advantage in the physical AI field, a reasonable valuation can be around 11 times PS by 2026, with the potential for further valuation adjustment if there are breakthroughs in full-process unmanned warehouse technology. Conclusion From the first-generation Siasun Robot&Automation demo at Tsinghua University's basement to becoming a benchmark in the global AMR industry, the commercialization of physical AI has been a long road, but Geek+ has proven that Chinese companies have the capability to become global leaders in this cutting-edge field. Looking at industry opportunities, there is currently a surge in global demand for logistics automation. Amazon plans to invest 10 billion US dollars in upgrading its warehouse Siasun Robot&Automation systems in the next five years, while JD LOGISTICS has set a goal of achieving "90% warehouse automation in 2027." Recently, the Trump administration has introduced policies to support the Siasun Robot&Automation industry's development, propelling Siasun Robot&Automation to a strategic high ground in global competition. As a leader in global warehouse Siasun Robot&Automation, with AI+ Siasun Robot&Automation technology, global layout, and scalable implementation capabilities, Geek+ is poised to benefit first, with a clear path to realizing performance and solid growth certainty. In conclusion, Geek+'s current stock price is in a triple resonance zone of "low valuation + fundamental improvement + catalyst for capital," In the short term, the passive funds inflow from being included in the Hang Seng Index will drive stock price valuation recovery; in the medium to long term, confirmation of the profit turnaround and the explosion of global orders will support a continuous upward trend in stock prices.