News

Investment Shift: GIANT BIOGENE's investment outlook has changed from growth to strategic adjustment due to a public relations crisis, with an anticipated adjustment period starting in 2026.
Profit Forecast Downgrade: CMSI has reduced its net profit forecast for GIANT BIOGENE by over 30% on average, now predicting a 12% lower profit than market expectations.
Rating Change: The company's rating has been downgraded from Buy to Neutral, reflecting a significant decrease in confidence.
Target Price Reduction: M Stanley has lowered GIANT BIOGENE's target price from HKD64 to HKD34.5, anticipating increased marketing efforts to aid in sales recovery.

Sales Guidance Adjustment: GIANT BIOGENE has revised its 2025 sales growth forecast from 25% to flat or a mild decline due to industry challenges, as reported by Morgan Stanley.
Marketing Strategy for Recovery: The company plans to increase marketing investments to counteract past controversies and support new product launches, which is expected to help rebuild brand momentum without significantly impacting profits.
Revenue Forecast Downgrade: Morgan Stanley has cut GIANT BIOGENE’s revenue projections for 2025-2027 by 20%, 32%, and 35%, respectively, predicting an 8% drop in net profit for 2025 and 2026, followed by a 20% rebound in 2027.
Target Price and Rating Change: UBS has downgraded GIANT BIOGENE to a Neutral rating and reduced its target price from HKD 78 to HKD 42, while Morgan Stanley maintains an Overweight rating despite the lowered forecasts.

UBS Downgrade: UBS downgraded GIANT BIOGENE (02367.HK) from Buy to Neutral due to increased uncertainty regarding short-term revenue and profit outlook, lowering its target price from $79.5 to $39.5.
Earnings Forecast Reduction: The broker reduced its earnings forecasts for 2025-2027 by 25-41% and revenue forecasts by 20-36%.
Market Competition: The report highlighted intensified market competition with emerging skincare brands offering more attractive pricing and using recombinant collagen as a core ingredient.
Product Innovation Uncertainty: Despite rapid product innovation by GIANT BIOGENE, there is uncertainty about the success of new products expected to launch next year.

Earnings Guidance Update: GIANT BIOGENE updated its full-year results guidance and highlighted risks to 2025 earnings during a conference call, with HSBC Global Research reporting a significant earnings forecast reduction of 17-25% for 2025-27 due to pressures on the Comfy brand.
Target Price Adjustment: CMBI has maintained a "Buy" rating for GIANT BIOGENE but lowered its target price from HKD 69.3 to HKD 46.4 in light of the revised earnings expectations.

Share Repurchase Announcement: GIANT BIOGENE plans to repurchase up to 104 million shares, representing 10% of its issued shares, and aims to enhance its product matrix, brand operations, and channel development by 2026.
Management Confidence: CICC views the buyback as a sign of management's confidence, highlighting the company's strong R&D capabilities and brand recognition, which are expected to drive operational improvements and growth in the medical beauty sector.
Target Price Adjustment: BofAS has reduced GIANT BIOGENE's target price by 20% to HKD56 while maintaining an Outperform rating, indicating a cautious outlook despite the company's potential.
Short Selling Data: The company has reported short selling of $87.94 million, with a ratio of 16.967%, reflecting market sentiment and trading activity surrounding its stock.
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