The research report "Big Banks" has initiated coverage on GEEKPLUS-W with a "Buy" rating and a target price of 29 yuan

AASTOCKS
2026.01.14 03:16

HSBC Research published a report, initiating coverage on the autonomous mobile robot (AMR) company GEEKPLUS-W (02590.HK), with a target price of HKD 29 and a "Buy" rating. The bank predicts that GEEKPLUS will achieve a compound annual growth rate (CAGR) of 147% in earnings per share (EPS) from 2025 to 2027, and expects it to reach breakeven in 2025. The target price corresponds to a forecasted price-to-earnings ratio of 46 times and a price-to-sales ratio of 6 times for 2027.

HSBC pointed out that AMR technology is rapidly transforming the global warehousing industry, with penetration expected to increase from 8% in 2024 to 20% in 2029. GEEKPLUS, with 72% of its revenue coming from overseas and a gross profit margin of 47% in overseas sales (compared to only 4% in the mainland China market), along with an increase in sales contribution from repeat customers (expected to account for 75% in 2024), has become an industry leader. Additionally, maintenance fee revenue is expected to account for 12% of sales by 2027.

The bank's earnings growth expectation for GEEKPLUS (CAGR of 147% from 2025 to 2027) is significantly higher than its competitor AutoStore (market expected 35%)

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