CMB International: Gives GEEKPLUS-W (02590) a target price of 26.7 Hong Kong dollars and a "buy" rating for the first time.

Guosen Securities International has released a research report stating it has a target price of HK$26.7 for GEEKPLUS-W (02590) and has given it a "buy" rating for the first time. Considering the rapid penetration of Geek+ in the global warehouse automation market, the bank believes that Geek+ should have a valuation premium. Based on their technological innovation in the self-propelled Siasun Robot&Automation (AMR) field, and having over 800 terminal customers in more than 40 countries worldwide, Geek+ (with overseas revenue accounting for 72% in 2024) is expected to fully capitalize on the opportunity to enhance the penetration rate of warehouse fulfillment AMR in the coming years. By comparing industry products and calculating customer return on investment, the bank further confirmed Geek+'s competitive advantage. It is forecasted that Geek+ will achieve a compound annual revenue growth of 34% from 2024 to 2027, and is expected to achieve meaningful profitability from 2026 onwards. As the first warehouse AMR company listed on the Hong Kong stock market, the bank believes that Geek+ has scarcity value.