Geek+ (02590.HK) has good growth prospects, and the large-scale share repurchase shows confidence.

This week, the Hang Seng Index continued to decline, but the AI+ robotics leader Geek+ (02590.HK) $GEEKPLUS-W(02590.HK) rose against the market trend. The main reason was a previous announcement stating plans to opportunistically repurchase some H-shares in the open market within 24 months from the announcement date. The total repurchase amount will not exceed 2 billion yuan, or the number of shares repurchased will not exceed 10% of the total issued shares as of the date of the annual general meeting. The average daily turnover over the past 20 days was about 5.4 million shares, approximately 65 million yuan. 2 billion yuan equals over 30 days of turnover, sufficient to support the stock price performance. The company's future business has growth potential and is worth watching.

Geek+ (02590.HK) mainly produces and sells Autonomous Mobile Robots (AMR) for warehousing. Its AI and robotics solutions are primarily applied in sectors such as apparel, e-commerce, pharmaceuticals, logistics, lithium batteries, and automotive. Its business covers over 40 countries and regions globally, ranking first in global AMR market share for seven consecutive years.

As an industry leader, the warehouse automation sector where Geek+ (02590.HK) operates is still in a stage of high growth and low penetration. According to a CIC report, about 80% of global warehouses had not adopted automation solutions in 2024, with a potential market space estimated to exceed 2 trillion yuan (RMB, same below). The market growth space remains vast. Data shows that the export share of China-made AMRs rose from 25.87% in 2022 to over 40% in 2025.

Geek+ (02590.HK) itself is in a period of high growth. In the 2025 fiscal year, revenue exceeded 3.1 billion yuan, a year-on-year increase of 31.6%. Both adjusted net profit and operating cash flow turned significantly positive, officially entering a healthy development stage of "profit generation." Notably, overseas revenue and newly signed order value grew significantly, reaching 37.4% and 40% respectively. By region, order growth in the Americas exceeded 50%, Latin American orders exceeded 600 million yuan, and Eastern European orders approached 500 million yuan, with overseas business continuing to drive new growth.

Geek+ (02590.HK) was officially included in the Hang Seng Artificial Intelligence Theme Index on June 18, becoming a core constituent representing the "Robotics" and "Physical AI" sectors in the index, indicating market recognition. Future share repurchases with real money demonstrate management's confidence in the company's business development prospects. Previously, major shareholders stated they are in no hurry to reduce their holdings at this stage, unanimously optimistic about the structural growth opportunities in the global smart logistics market. They recognize the company's leading position, technological barriers, and commercialization capabilities in the AMR sector, as well as the vast growth space driven by the scaled commercial application of embodied AI. It is believed that with promising growth prospects and the support of share repurchases, the company's future market performance is worth anticipating.

Written by: Professor Li Huifen, Greater Bay Area Family Office Association

(I do not hold the above stocks)