Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is a leader in the recombinant collagen sector, showing strong performance with a revenue of 5.54 billion yuan in 2024, representing a year-on-year growth of 57.1% [8] - The adjusted net profit for 2024 is projected at 2.06 billion yuan, with a year-on-year increase of 42.1% [8] - The company has a strong online and offline sales growth, with direct-to-consumer (DTC) online sales increasing by 66.5% and offline direct sales doubling [8] - The company maintains a high gross margin of 82.1% despite a slight decline due to product type expansion [8] - Future profit forecasts have been adjusted upwards, with net profit estimates for 2025 and 2026 increased to 2.57 billion yuan and 3.21 billion yuan, respectively [8] Financial Summary - Total revenue is projected to grow from 3.53 billion yuan in 2023 to 11.62 billion yuan by 2027, with a compound annual growth rate (CAGR) of approximately 28.23% [1] - The net profit is expected to rise from 1.45 billion yuan in 2023 to 4.05 billion yuan in 2027, reflecting a CAGR of about 25.88% [1] - The earnings per share (EPS) is forecasted to increase from 1.40 yuan in 2023 to 3.91 yuan in 2027 [1] - The price-to-earnings (P/E) ratio is projected to decrease from 44.64 in 2023 to 16.01 by 2027, indicating improving valuation [1]

Investment Rating - The report maintains a "BUY" rating for Giant Biogene, indicating a potential return of over 15% over the next 12 months [3][12]. Core Insights - Giant Biogene reported strong performance in 2024, with revenue increasing by 57% year-over-year (YoY) to RMB 5.5 billion. Revenue from skincare products and medical dressing rose by 62.5% YoY and 41.5% YoY, respectively [1][2]. - The gross profit margin (GPM) declined from 83.6% in 2023 to 82.1% in 2024 due to the increased revenue proportion from skincare products and rising marketing costs [1]. - Online revenue surged by 70% YoY, contributing 71.6% to total revenue, which led to an increase in the selling expense ratio by 3.2 percentage points to 36.3% in 2024. Consequently, the attributable net profit margin (NPM) decreased by 4 percentage points to 37.2% [1][2]. Financial Summary - For FY24, revenue is projected at RMB 5,539 million, with a YoY growth of 57.2%. The adjusted net profit is expected to be RMB 2,152 million, reflecting a YoY growth of 48.2% [2][13]. - The earnings estimates for FY25, FY26, and FY27 are RMB 7,138 million, RMB 9,320 million, and RMB 11,944 million, respectively, with corresponding YoY growth rates of 28.9%, 30.6%, and 28.2% [2][13]. - The price-to-earnings (P/E) ratio is projected to decrease from 42.4x in FY23 to 30.0x in FY24, indicating improved valuation metrics as earnings grow [2][13]. Target Price and Valuation - The target price for Giant Biogene is set at HK$ 79.96, representing an upside of 18.5% from the current price of HK$ 67.45 [3][10]. - The valuation is based on a discounted cash flow (DCF) model with a weighted average cost of capital (WACC) of 10.9% and a terminal growth rate of 3.0% [8][10]. Share Performance - The market capitalization of Giant Biogene is approximately HK$ 69.87 billion, with a 52-week high of HK$ 72.80 and a low of HK$ 35.70 [3][4]. - The stock has shown strong performance, with a 1-month increase of 5.8% and a 6-month increase of 39.6% [5].

Group 1 - The Hang Seng Healthcare Index (HSHCI) has seen a strong increase of 1.80%, with notable gains from companies such as Lepu Biopharma-B (up 16.56%) and Zai Lab (up 10.27%) [1] - The Hang Seng Medical ETF (513060) has risen by 2.11%, marking its third consecutive increase, with a trading volume of 4.69 billion yuan [1][2] - The second Boao Lecheng Stem Cell Conference has opened, marking a new phase of standardized and high-quality development in China's stem cell industry [2] Group 2 - Financial analysts predict that the approval and implementation of more projects in the stem cell sector will lead to advanced treatment methods benefiting the public [2] - The domestic medical innovation industry is expected to experience multiple growth opportunities, particularly for companies with true innovation capabilities in new drug development [2] - The Hang Seng Medical ETF has seen a significant growth in scale, increasing by 34.09 billion yuan over the past year, ranking in the top third among comparable funds [2] Group 3 - Since its inception, the Hang Seng Medical ETF has achieved a maximum monthly return of 28.34% and an average monthly return of 7.00% [3] - The ETF has outperformed its benchmark with an annualized excess return of 2.02% over the past year [3] - The ETF's management fee is 0.50%, and the custody fee is 0.15% [3] Group 4 - The tracking error of the Hang Seng Medical ETF is 0.033%, the highest tracking precision among comparable funds [4] - The latest price-to-earnings ratio (PE-TTM) of the Hang Seng Medical Healthcare Index is 24.97, indicating it is at a historical low compared to the past year [4] - The top ten weighted stocks in the Hang Seng Medical Healthcare Index account for 55.64% of the index, with companies like WuXi Biologics and BeiGene among the leaders [4][6]

Investment Rating - The report maintains a "Buy" rating for the company [11][18]. Core Views - The company achieved a revenue of 5.539 billion yuan in 2024, representing a year-on-year increase of 57.17%, with a net profit of 2.062 billion yuan, up 42.02% [1][4]. - The strong performance is driven by the core product lines, particularly the effective skincare products and medical dressings, which continue to show robust growth [2][4]. - The company is focusing on enhancing brand recognition through scientific marketing and expanding its product matrix in skincare and medical aesthetics [4][17]. Financial Performance - In 2024, the revenue breakdown shows effective skincare products generated 4.302 billion yuan (77.68% of total revenue, +62.52%), medical dressings contributed 1.218 billion yuan (21.99%, +41.51%), and health foods accounted for 0.018 billion yuan (0.33%, +15.0%) [2][14]. - The company’s gross margin for 2024 was 82.09%, slightly down by 1.54 percentage points, while the net profit margin was 37.22%, down by 3.97 percentage points [16][19]. - The company plans to distribute a cash dividend of 1.19 yuan per share [1][13]. Future Projections - Revenue forecasts for 2025-2027 are set at 7.056 billion yuan, 8.790 billion yuan, and 10.568 billion yuan, respectively, with net profits projected at 2.538 billion yuan, 3.189 billion yuan, and 3.867 billion yuan [4][17]. - The expected price-to-earnings (PE) ratios for the same period are 25x, 20x, and 17x [4][18]. Marketing and Sales Strategy - The company increased its sales expenses to 2.008 billion yuan in 2024, reflecting a 72.46% increase, primarily due to enhanced online marketing efforts [3][15]. - Direct sales accounted for 4.134 billion yuan (74.64% of total revenue), with significant contributions from both online and offline channels [2][14]. Research and Development - The company continues to invest in R&D, with expenses reaching 1.06 billion yuan in 2024, representing a 42.06% increase [3][15]. - The product pipeline includes over 180 projects across various fields, ensuring long-term growth potential [16][19].

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company is expected to achieve impressive performance in 2024, with a revenue growth of 57.2% and a net profit growth of 42.1% [6] - The company's flagship brands are showing strong momentum, with significant contributions from key products like collagen sticks and new launches in the skincare segment [6] - The company is well-positioned in a high-growth sector, with a clear growth path and strong medium to long-term earnings visibility [6] Financial Performance Summary - Revenue for 2024 is projected at 55.4 billion RMB, with a year-on-year growth of 57.2% [6] - Net profit for 2024 is expected to be 20.6 billion RMB, reflecting a 42.1% increase [6] - The company anticipates continued growth in net profit for 2025-2027, with estimates of 27.5 billion RMB, 34.1 billion RMB, and 40.4 billion RMB respectively, representing growth rates of 33.4%, 23.9%, and 18.6% [6][7] Revenue and Profit Forecast - Revenue projections for the next few years are as follows: - 2025: 7,477.13 million RMB (35.0% growth) - 2026: 9,170.26 million RMB (22.6% growth) - 2027: 10,731.91 million RMB (17.0% growth) [5][7] - The company's gross margin is expected to remain high, around 81.8% in 2025 [7] Brand Performance - The brand "可复美" contributed 45.4 billion RMB in revenue for 2024, with a growth of 62.9%, accounting for 82% of total revenue [6] - The brand "可丽金" generated 8.4 billion RMB in revenue, growing by 36.3% and representing 15% of total revenue [6] Market Strategy - The company employs a multi-channel strategy, combining online and offline sales to effectively reach consumers [6] - It has expanded its presence in both public and private healthcare institutions, with products available in approximately 1,700 public hospitals and 3,000 private clinics [6]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [4][10]. Core Insights - The company reported a revenue of 5.539 billion yuan for 2024, representing a year-on-year growth of 57.2%. The net profit attributable to shareholders for the same period is projected at 2.062 billion yuan, a 42% increase [2][4]. - The company has adjusted its profit forecasts for 2025 and 2026 upwards, with expected net profits of 2.567 billion yuan and 3.142 billion yuan respectively, reflecting growth rates of 24% and 22% [4][7]. - The report highlights a strong performance in direct-to-consumer (DTC) channels, with revenue from DTC stores and e-commerce platforms growing by 66% and 112% respectively [8]. Financial Performance - For 2024, the company expects a gross margin of 82.1%, slightly down from the previous year, with a sales expense ratio increasing to 36.26% due to higher online marketing investments [8]. - The company has entered approximately 1,700 public hospitals and 3,000 private hospitals, indicating a robust expansion strategy [8]. - The revenue from key products, such as 可复美 and 可丽金, reached 4.542 billion yuan and 841 million yuan respectively, with growth rates of 63% and 36% [8]. Profitability Metrics - The diluted earnings per share for 2024 is projected at 1.99 yuan, with a return on equity (ROE) of 29.01% [7][8]. - The company’s price-to-earnings (P/E) ratio is expected to be 25.06 for 2024, decreasing to 17.36 by 2027, indicating a favorable valuation trend [7][8]. Market Position and Strategy - The company is focusing on enhancing brand strength through scientific skincare communication and product innovation, with a strong emphasis on proprietary research and development [8]. - The report notes that the company is well-positioned in the medical dressing market, with leading market share and a healthy customer structure [8].

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company reported a significant increase in net profit attributable to shareholders, rising by 42% year-on-year, driven by strong performance in its skincare business [7] - The company achieved a revenue of 5.54 billion RMB in 2024, reflecting a year-on-year growth of 57.2% [7][8] - The adjusted net profit for 2024 was 2.15 billion RMB, marking a 46.5% increase compared to the previous year [7] Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: 3.524 billion RMB - 2024: 5.539 billion RMB - 2025E: 7.066 billion RMB - 2026E: 8.842 billion RMB - 2027E: 10.691 billion RMB - Year-on-year growth rates for revenue are projected at 49% for 2023, 57% for 2024, and 28% for 2025E [6] - Net profit attributable to shareholders is forecasted as follows: - 2023: 1.452 billion RMB - 2024: 2.062 billion RMB - 2025E: 2.537 billion RMB - 2026E: 3.119 billion RMB - 2027E: 3.726 billion RMB - The net profit growth rates are expected to be 45% for 2023, 42% for 2024, and 23% for 2025E [6][15] Business Performance Highlights - The company's flagship skincare brand, 可复美, generated revenue of 4.54 billion RMB in 2024, a 62.9% increase, accounting for 82% of total revenue [7] - The direct sales channel saw a robust growth of 70.8%, contributing 41.3 billion RMB to total revenue [7] - The company plans to introduce new products in 2025, including 大膜王 3.0 and 胶卷面霜, which are expected to drive further revenue growth [7]

Investment Rating - The report maintains a "Strong Buy" rating for the company [1][8]. Core Views - The company achieved significant growth in 2024, with revenue increasing by 57% to 5.54 billion CNY and net profit rising by 42% to 2.06 billion CNY, driven by strong brand performance and effective marketing strategies [1][8]. - Despite a slight decline in gross margin due to new product expansions and increased sales expenses, the company is expected to maintain robust growth in the coming years, with projected net profits of 2.51 billion CNY, 2.91 billion CNY, and 3.27 billion CNY for 2025 to 2027, representing year-on-year growth rates of 22%, 16%, and 12% respectively [1][8]. Revenue Breakdown - The company's revenue is segmented by product categories, with functional skincare products generating 4.30 billion CNY (up 62.5%), medical dressings at 1.22 billion CNY (up 41.5%), and health foods at 0.18 billion CNY (up 15.0%) [2]. - By brand, the company's flagship brand, 可复美, achieved revenue of 5.32 billion CNY (up 62.9%), while 可丽金 and other brands also showed significant growth [2]. - In terms of sales channels, direct sales revenue reached 4.13 billion CNY (up 70.8%), with online direct sales through DTC stores contributing 3.59 billion CNY (up 66.5%) and e-commerce platforms showing a remarkable increase of 112.5% [3]. Financial Performance - The company's gross margin for 2024 was 82.1%, a decrease of 1.5 percentage points year-on-year, primarily due to increased product costs and new product introductions [8]. - The net profit margin for 2024 was 37.2%, down 3.9 percentage points from the previous year, influenced by rising sales expenses [8]. - The company plans to distribute a final dividend of 0.6021 CNY per share and a special dividend of 0.5921 CNY per share [1]. Future Projections - The company is expected to continue its growth trajectory with a strong product lineup and effective channel expansion, projecting revenues of 7.09 billion CNY, 8.69 billion CNY, and 10.27 billion CNY for 2025 to 2027, with respective growth rates of 28%, 23%, and 18% [10]. - The earnings per share (EPS) is projected to increase from 2.01 CNY in 2024 to 3.15 CNY by 2027 [12].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 81.61 HKD [7][8]. Core Views - The company is experiencing strong revenue growth, with a projected revenue of 55.39 billion RMB for 2024, representing a year-on-year increase of 57.2% [1]. - The net profit attributable to the parent company is expected to reach 20.62 billion RMB in 2024, reflecting a year-on-year growth of 42.1% [1]. - The company continues to see robust growth momentum, particularly in its flagship product, the collagen stick, which is anticipated to maintain around 20% growth in 2025 [1]. - The online channel revenue for the company has surpassed 50%, with expectations for continued strong growth in 2025 [1]. Revenue and Profit Forecast - The company forecasts revenues of 7,115 million RMB for 2025, with a growth rate of 28.45% [6]. - The net profit attributable to the parent company is projected to be 2,600 million RMB in 2025, indicating a growth of 26.07% [6]. - The earnings per share (EPS) is expected to be 2.53 RMB for 2025 [6]. Product Performance and Market Expansion - The collagen stick's revenue contribution is expected to decrease to below 30% in 2024, with new products like the focus series anticipated to drive growth [2]. - The company has opened its first brand flagship store in Chongqing and continues to expand its offline presence in key cities [2]. - The direct sales channel has shown significant growth, with DTC store sales reaching 35.87 billion RMB, a year-on-year increase of 66% [3]. Margin and Cost Structure - The gross margin for 2024 is projected at 82.1%, a slight decrease of 1.5 percentage points year-on-year due to a higher proportion of sales from essence and cream products [3]. - The selling expense ratio is expected to increase slightly in 2025 due to continued investment in online channels [3]. Valuation Metrics - The company is assigned a price-to-earnings (PE) ratio of 30 times for 2025, reflecting strong online growth and potential contributions from medical beauty products [4]. - The target price has been adjusted to 81.61 HKD, based on a 30 times PE for 2025 [4].

Investment Rating - The investment rating for the company is "Buy" [9]. Core Insights - The company's 2024 performance exceeded expectations, driven by the strong growth of its collagen stick product and the ramp-up of new products in the focus series, alongside the growth of its star product, Keli Jin [3][9]. - The company has a robust pipeline of new products in its cosmetics business, which is expected to contribute to future growth [3][9]. Financial Summary - The company's revenue for 2024 is projected to be 55.39 billion RMB, representing a year-on-year increase of 57%. The adjusted net profit is expected to be 21.51 billion RMB, up 47% year-on-year, while the net profit attributable to the parent company is forecasted at 20.62 billion RMB, a 42% increase [9]. - The gross profit margin for 2024 is estimated at 82.1%, a decrease of 1.5 percentage points year-on-year, primarily due to faster growth in the skincare segment compared to the medical device segment [9]. - The company’s sales expense ratio is expected to be 36.26%, an increase of 3.21 percentage points year-on-year, attributed to a higher proportion of online sales [9]. - The company anticipates a net profit margin of 37.2% for 2024, down 4 percentage points year-on-year, due to changes in channel and product structure [9]. Product and Brand Performance - The company’s star product, the collagen stick, maintains strong momentum, with significant contributions from new products and brand expansion. The focus series cream has generated over 200 million RMB in revenue, indicating successful product structure optimization [9]. - The Keli Jin brand is expected to see accelerated growth in the second half of 2024, benefiting from the strong performance of its flagship products [9]. - The company has a diverse product line and brand portfolio, which is expected to sustain rapid growth through continuous new product incubation [9].