Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

Geekplus Technology / Equity Capital Markets

<ul>
<li>Geek+, AI &amp; robotics warehouse automation provider, has updated its filings and reported weak revenue growth in 2024.</li>
<li>Beijing based AMR solution unicorn’s revenue grew to RMB2,409m in 2024, up ~12% YoY. However, gross margins improved, operating losses narrowed, and cash burn rate decreased.</li>
<li>My IPO valuation analysis coalesces around initial valuation range between $2.3B and $2.7B for Geek+ upcoming offering.</li>
</ul>


Geek+, AI &amp; robotics warehouse automation provider, has updated its filings and reported weak revenue growth in 2024.
Beijing based AMR solution unicorn’s revenue grew to RMB2,409m in 2024, up ~12% YoY. However, gross margins improved, operating losses narrowed, and cash burn rate decreased.
My IPO valuation analysis coalesces around initial valuation range between $2.3B and $2.7B for Geek+ upcoming offering.


Geek+ IPO Valuation Update: Growth Cratered, High U.S. Revenue Exposure

<ul>
<li>Geek+, a Beijing-based autonomous mobile robots (AMRs) unicorn with focus on smart logistics, filed to go public in Hong Kong.</li>
<li>The AI &amp; robotics company was backed by Warburg Pincus, GGV Capital, D1 Capital Partners, Intel Capital, Vertex Ventures, and Gaorong Capital, among others.</li>
<li>Beijing Geekplus IPO comes after another robotics unicorn, a leading manufacturer of collaborative robots Shenzhen Dobot, raised ~HK$681M in its HK IPO in December.</li>
</ul>


Geek+, a Beijing-based autonomous mobile robots (AMRs) unicorn with focus on smart logistics, filed to go public in Hong Kong.
The AI &amp; robotics company was backed by Warburg Pincus, GGV Capital, D1 Capital Partners, Intel Capital, Vertex Ventures, and Gaorong Capital, among others.
Beijing Geekplus IPO comes after another robotics unicorn, a leading manufacturer of collaborative robots Shenzhen Dobot, raised ~HK$681M in its HK IPO in December.


Geek+ IPO Preview: Extending Leadership in Warehouse Automation Sector, New Robotic IPO in Hong Kong

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

BWS provides independent stock specific research focused on companies with distinct value that are going through a special situation where there is a tangible catalyst not priced in. The catalyst can be anything from new product, restructuring, M&A, management change, change in business strategy, etc. BWS’s focus is to understand the change and evaluate the potential return for investors.

BWS utilizes a self formed proprietary approach in discovering stocks by putting great emphasis on deep research. BWS does generate short recommendations following a similar criteria.

Equity Bottom-Up

<ul>
<li>SYM reported fiscal fourth quarter results that at first glance were better than expected, but really included several accounting events that seem to hide how SYM had a poor quarter.</li>
<li>Along with the quarterly results, SYM disclosed a restatement of prior quarterly results where $39.1 million of high-margin revenue was transferred to the fourth quarter. </li>
<li>When we initiated coverage of SYM we were worried about the timing of revenue associated with Walmart (WMT) and not anticipating an accounting mess.</li>
</ul>


SYM reported fiscal fourth quarter results that at first glance were better than expected, but really included several accounting events that seem to hide how SYM had a poor quarter.
Along with the quarterly results, SYM disclosed a restatement of prior quarterly results where $39.1 million of high-margin revenue was transferred to the fourth quarter. 
When we initiated coverage of SYM we were worried about the timing of revenue associated with Walmart (WMT) and not anticipating an accounting mess.


<ul>
<li>SYM) announced it would place automation system at two distribution centers being built by Walmex. Mexico would be brand new market for SYM, but the relationship with WMT is not. </li>
<li>The distribution centers SYM is poised to initially go into were announced in 2022. The 2022 news includes timing of the distribution centers in Tlaxcala and El Bajio.</li>
<li>The rate of systems being accepted slowed in the third quarter. We continue to believe this could become the primary headwind for SYM’s quarterly report and stock price. </li>
</ul>


SYM) announced it would place automation system at two distribution centers being built by Walmex. Mexico would be brand new market for SYM, but the relationship with WMT is not. 
The distribution centers SYM is poised to initially go into were announced in 2022. The 2022 news includes timing of the distribution centers in Tlaxcala and El Bajio.
The rate of systems being accepted slowed in the third quarter. We continue to believe this could become the primary headwind for SYM’s quarterly report and stock price. 


<ul>
<li>SYM has disclosed one additional customer site location, Cullman, Alabama, in third quarter 2024. This one location brings the total number of sites where customers have accepted SYM’s to twenty.</li>
<li>We believe the slowdown in system placements and acceptance has continued into the third quarter and the challenges faced in the second quarter are likely to continue.</li>
<li>SYM has been promising several product placements progressing from backlog to acceptance. We believe this pace has slowed with only one location so far in Q3</li>
</ul>


SYM has disclosed one additional customer site location, Cullman, Alabama, in third quarter 2024. This one location brings the total number of sites where customers have accepted SYM’s to twenty.
We believe the slowdown in system placements and acceptance has continued into the third quarter and the challenges faced in the second quarter are likely to continue.
SYM has been promising several product placements progressing from backlog to acceptance. We believe this pace has slowed with only one location so far in Q3


United States

Symbotic Inc operates as an automation technology company. The Company specializes in supply chain with its end-to-end, AI-powered robotic, and software platform. Symbotic serves the retail, wholesale, and food companies worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Symbotic (SYM US)

Geek+ IPO Valuation Update: Growth Cratered, High U.S. Revenue Exposure

Geek+ plans to go public in Hong Kong soon. In my insight, I discuss IPO valuation, update my financial model and dive deeper into the comps groups

Andrei Zakharov

Geek+ IPO Preview: Extending Leadership in Warehouse Automation Sector, New Robotic IPO in Hong Kong

Beijing-based Geek+, a leader in the global AMR market, applying advanced robotics and AI technologies to warehouse and factory operations, will go...

Andrei Zakharov

SYM: Celebrating an Accounting Nightmare

SYM transferred high-margin revenue to Q4. SYM also recognized $91.6 million in unbilled accounts receivable as revenue creating an illusion of...

BWS Financial Inc

SYM: The Optics from 2022 News in 2024

SYM announced expansion into Mexico with Walmex. The news of the distribution centers was first announced in 2022. We contend that using SYM is not...

BWS Financial Inc

SYM: One Site Equals Sell

SYM has added one new site on its location list, Cullman, Alabama so far in the third quarter. We believe the rate of systems placed and being...

BWS Financial Inc

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)