Beijing Geekplus Technology Co. Ltd. Class H (2590) has received a new Buy rating, initiated by CMB International Securities analyst, Wayne Fung.
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Wayne Fung has given his Buy rating due to a combination of factors that highlight the promising outlook for Beijing Geekplus Technology Co. Ltd. Class H. The company is a leader in the autonomous mobile robots (AMR) sector, boasting over 800 end customers across 40 countries, and is expected to benefit from the increasing penetration of AMR solutions in warehouse automation. Geekplus is projected to achieve a 34% revenue CAGR from 2024 to 2027, with significant profits anticipated by 2026.
Additionally, Geekplus’s modular development capabilities allow for seamless integration into existing systems, enhancing its market penetration. The company’s solutions have demonstrated substantial operational efficiencies for clients, as evidenced by YesAsia’s experience, which resulted in significant cost savings and improved throughput. The scarcity value of being the first warehouse AMR company listed on HKEX further supports the Buy rating, with a target price of HK$26.7, reflecting its strong growth potential compared to peers.
In another report released on August 7, Deutsche Bank also initiated coverage with a Buy rating on the stock with a HK$23.50 price target.