Deutsche Bank slightly raised the target price of GEEKPLUS to 32.5 yuan, with weak stock prices providing an entry opportunity

Deutsche Bank's research report indicates that the recent weak stock price of GEEKPLUS (02590.HK) provides an attractive entry point. The bank believes that the company has a clear path for the commercialization of embodied AI, with smart robotic arms and humanoid robots being very suitable for warehouses. The company possesses domain expertise and a broad customer base; management plans to deploy 300 to 500 sets of embodied AI products this year.

Additionally, the global warehouse automation market remains strong, and considering the longer conversion time, GEEKPLUS's healthy order backlog provides visibility for this year's revenue. Moreover, benefiting from a high customer repurchase rate and increasing subscription service order revenue, the proportion of recurring revenue in GEEKPLUS's income is growing.

The bank stated that GEEKPLUS's current price corresponds to a forecasted price-to-sales ratio (P/S) of 4.2 times for 2026, making it one of the most attractively valued robotics companies in the Hong Kong stock market, while most robotics peers are valued at 13 times or higher. The bank reiterated its "Buy" rating, with the target price slightly raised from HKD 32 to HKD 32.5