Daiwa: GEEKPLUS's current valuation is attractive, reiterates "Buy" rating

Daiwa published a research report stating that it believes GEEKPLUS-W (02590.HK) can continue its upward trend.

Daiwa noted that although GEEKPLUS had a solid fundamental performance in the fourth quarter of last year, investors remain concerned about its volatility. However, the firm believes that the strong performance year-to-date mainly reflects the elimination of pending stock supply pressure after the end of the lock-up period. After the stock price underwent a deep correction, it is currently in an attractive valuation range, leading the firm to believe that investors are shifting from a wait-and-see approach to buying.

The firm mentioned that despite GEEKPLUS's stock price being at historical highs, there are still several catalytic factors that have not been fully reflected, such as potential earnings forecasts and the possibility of being included in the Stock Connect. In addition, the overall investment atmosphere with rising risk appetite, combined with the company's clear earnings outlook and the highly predictable total addressable market (TAM) for robotics, provides more room for valuation upside compared to last year. The firm reiterated its "Buy" rating