Bank of America Securities has raised its target price for GEEKPLUS-W (02590) from HK$31 to HK$33, marking a 6% increase, while maintaining a "Buy" rating. The bank forecasts that GEEKPLUS-W will turn profitable this year, with earnings per share expected to grow by 55% annually through 2028. Potential catalysts include inclusion in the Stock Connect program, new orders for picking and robotic products/solutions, and breakthroughs in packaging robot R&D.
Investors recognize GEEKPLUS-W's potential to benefit from rising warehouse automation demand, an aging workforce, and increased needs from e-commerce, third-party logistics, and retailers. The company is also seen as having advantages in developed markets with higher profitability and strong demand. Additionally, its recent addition to the Hang Seng Composite Index is expected to enhance liquidity.
The report highlights GEEKPLUS-W's automated mobile robot solutions, which feature robust control systems and scheduling capabilities—key barriers to entry in the industry. The company provides one-stop picking and sorting solutions for warehouses, supporting multiple robots operating simultaneously with high stability. This strengthens its second competitive edge: trust from global leaders in fast-moving consumer goods, retail, and third-party logistics.
Bank of America also notes that GEEKPLUS-W's revenue streams—including hardware, control systems, and services—are less exposed to tariffs. Furthermore, the company has begun charging maintenance fees (10% of initial costs annually) as recurring revenue, supporting sustainable growth.
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