In "Major Banks," CICC lowers the target price for GIANT BIOGENE to 56 yuan, still optimistic about its medium to long-term growth potential

According to a research report by China International Capital Corporation (CICC), GIANT BIOGENE (02367.HK) announced a plan to repurchase up to 104 million shares, accounting for 10% of the issued shares, and communicated its strategic plans for expanding the product matrix, brand operations, and channel development in 2026 with the capital market.

The firm believes that the buyback demonstrates management's confidence, while the company's R&D capabilities, brand recognition, and team cohesion remain strong. It is expected that the company will improve its operations by optimizing product structure, timely adjusting operational strategies, and leveraging the growth of its second curve medical aesthetics business. The firm is optimistic about the company's medium to long-term growth potential as a leader in collagen restructuring.

Due to short-term pressure on cosmetics sales, the firm has lowered its net profit forecasts for 2025 and 2026 by 25% and 33%, to RMB 1.91 billion and RMB 2.14 billion, respectively. The target price has been reduced by 20% to HKD 56, maintaining an "outperform the industry" rating based on adjustments to profit forecasts and the company's solid long-term competitive advantages