According to "The Big Bank," Bank of America Securities has lowered the target price for GIANT BIOGENE to 68.3 yuan and reiterated a "Buy" rating

Bank of America Securities published a research report indicating that GIANT BIOGENE (02367.HK) recently received the Medical Device Registration Certificate from the National Medical Products Administration regarding its recombinant type I α1 collagen freeze-dried fiber product. This product, which uses recombinant collagen as its main ingredient, is intended for facial dermal tissue filling to correct dynamic wrinkles on the forehead, including frown lines, forehead lines, and crow's feet. The firm noted that this is the first approved recombinant type I native sequence collagen facial injection product in China, which is expected to potentially become a new revenue growth point for the company. Additionally, the medical device registration demonstrates the company's R&D capabilities and product credibility, which may boost market sentiment.

However, the firm pointed out that preliminary data shows that the sales growth of the company's brand Comfy during this year's Double Eleven shopping festival was weak, which they believe was affected by earlier controversies, promotional activities falling short of expectations, and competition. The firm has lowered its revenue forecasts for the company for 2025 to 2027 by 2.5%, 4.6%, and 6.8%, respectively.

The firm also stated that the company's performance during Double Eleven will continue to attract market attention. They have lowered the company's target price from HKD 79.5 to HKD 68.3 and reiterated a "Buy" rating to reflect its leadership position in the recombinant collagen industry and the new growth momentum from injectable medical beauty products