Understanding the Market | GIANT BIOGENE falls over 4% again, Kfume performs flat in the Double Eleven pre-sale, Citigroup says market reaction is excessive

GIANT BIOGENE fell more than 4% again, having halved from the year's high of HKD 85.79. As of the time of writing, it dropped 4.01% to HKD 39.22, with a transaction volume of HKD 745 million. In terms of news, this year's "Double Eleven" has officially kicked off, and GIANT BIOGENE's subsidiary KefuMei has shown lackluster performance in pre-sales. According to a research report from Citigroup, during the pre-sale in Li Jiaqi's live broadcast on October 15, the performance of GIANT BIOGENE's flagship products declined. Citigroup stated that due to a more rigorous promotional strategy for the product, its price attractiveness is not as strong as that of other brands. However, the bank also indicated that it believes the market's reaction to GIANT BIOGENE's pre-sale performance decline on the first day of Double Eleven during Li Jiaqi's live broadcast is excessive. Citigroup noted that while the sales trend from Li Jiaqi's live broadcast is an important indicator of Double Eleven performance, its contribution has sharply decreased with the growth of other KOLs and the company's own live broadcasts. Despite the intense competition, there has been no negative feedback from the company's customers regarding its products or brand. Given the low base this year, Citigroup expects GIANT BIOGENE's sales to recover growth in the fiscal year 2026, and its valuation remains attractive