Company and Industry Summary Company Overview - The company reported a research and development expenditure of 49 million, which accounts for 1.9% of its revenue as of the reporting period [1] - As of the end of the reporting period, the company has obtained a total of 133 patents, including 40 new patents added during the reporting period [1] - The company has received recognition for three patents, which were awarded the PCQ International Invention Award [1]

Investment Rating - The report maintains a "Buy" rating for Giant Biogene [2][21]. Core Insights - Giant Biogene reported revenue of RMB 25.4 billion for 1H24, a year-on-year increase of 58%, exceeding Bloomberg consensus estimates by 12% [1]. - The net profit attributable to shareholders grew by 48% to RMB 9.83 billion, also surpassing consensus estimates by 13% [1]. - The Comfy brand showed strong growth, with revenue increasing by 69% to RMB 20.7 billion in 1H24 [1]. - The company is expanding its product offerings and market reach, despite a slight decrease in gross margin to 82.4% [1]. Revenue and Profit Forecast - Revenue is projected to grow to RMB 50.89 billion in FY24E, representing a 44% year-on-year increase, and to RMB 68.60 billion in FY25E, a 35% increase [6][15]. - Adjusted net profit is expected to reach RMB 18.77 billion in FY24E and RMB 24.35 billion in FY25E, with growth rates of 36% and 26% respectively [2][6]. Financial Summary - The company reported a gross profit of RMB 41.84 billion for FY24E, with a gross margin of 82.20% [6][15]. - The adjusted earnings per share (EPS) for FY24E is projected at RMB 1.83, with a price-to-earnings (P/E) ratio of 20.1 [6][19]. - The target price for the stock is set at HKD 62.07, reflecting a potential upside of 52.3% from the current price of HKD 40.75 [4][11]. Market Position and Brand Performance - The Comfy brand's flagship product, Comfy Collagen Stick, is expected to see revenue growth of approximately 50% in April 2024 [1]. - The company is actively expanding its offline sales channels for the Comfy brand, which has shown explosive potential during promotional events [1]. - The Collgene brand has also seen significant online sales growth, contributing to 23.6% of total revenue in 1H24 [1].

21 Aug 2024 CMB International Global Markets | Equity Research | Company Update Giant Biogene (2367 HK) Sales of Comfy brand surpass expectations 1H24 earnings beat, fueled by the rapid growth of Comfy brand. Giant Biogene reported 1H24 revenue of RMB2,540mn, up 58% YoY and 12% above Bloomberg consensus estimates, accounting for 55% of our full-year estimate. Attributable net profit increased by 48% YoY to RMB983mn, which was 13% ahead of Bloomberg consensus estimates, accounting for 57% of our full-year es ...

Investment Rating - Buy | Maintain [2] Core Viewpoints - 24H1 performance exceeded expectations with a 47% YoY increase in net profit attributable to the parent company [3] - Revenue for 24H1 reached RMB 2.54 billion, a 58.21% YoY increase, with net profit attributable to the parent company at RMB 983 million, up 47.41% YoY [3] - Adjusted net profit for 24H1 was RMB 1.027 billion, a 51.77% YoY increase [3] - Gross margin for 24H1 was 82.4%, down 1.74 percentage points YoY due to product expansion and increased sales costs [3] - Sales expense ratio for 24H1 was 35.11%, up 0.54 percentage points YoY, driven by rapid expansion of online direct sales channels [3] - Management expense ratio for 24H1 was 2.58%, down 0.37 percentage points YoY, while R&D expense ratio was 1.92%, down 0.2 percentage points YoY [3] Brand and Channel Performance - Kefumei brand revenue for 24H1 was RMB 2.071 billion, a 68.6% YoY increase, driven by the star product "Collagen Stick" and new product "Focus Series" [4] - Kelijing brand revenue for 24H1 was RMB 396 million, a 23.6% YoY increase, with new products like "Collagen Eye Cream" and "Collagen Face Cream" contributing to growth [4] - Direct sales channels accounted for 72.4% of total revenue in 24H1, with DTC online direct sales contributing 63.1%, a 64.1% YoY increase [4] - Distribution channels accounted for 27.6% of total revenue, up 34.4% YoY [4] - Online sales on platforms like Tmall and Douyin grew rapidly, with Kefumei and Kelijing achieving over 60% and 100% growth respectively during the 618 shopping festival [4] - Offline channels covered approximately 1,500 public hospitals, 2,700 private hospitals and clinics (200 more than in 2023), 650 chain pharmacies, and around 6,000 CS/KA stores [4] - The company opened about 10 new stores in key cities like Xi'an, Chongqing, and Chengdu, and launched its first flagship store in June [4] Production and Expansion - The company added one new production line each for cosmetics and medical devices in 24H1 [4] - A new medical device factory is expected to be operational within the year [4] Financial Forecast - The company is expected to achieve net profit attributable to the parent company of RMB 1.951 billion, RMB 2.435 billion, and RMB 2.957 billion for 2024, 2025, and 2026 respectively [5] - The corresponding P/E ratios are 19x, 16x, and 13x for 2024, 2025, and 2026 respectively [5] Industry Position - The company is a leader in collagen-based professional skin care products in China, with a strong focus on R&D and a portfolio of eight consumer brands [5]

Investment Rating - The report maintains a "Buy" rating for Giant Biogene (2367 HK) with a target price of HKD 52 0, implying a potential upside of 27 5% from the current price of HKD 40 8 [4][2] Core Views - Giant Biogene's 1H24 results exceeded expectations, with revenue and net profit growing 58 2% and 47 4% YoY, respectively, surpassing both the company's guidance and market expectations [2] - The strong performance was driven by the Kefumei brand, which saw a 68 6% YoY revenue increase, contributing 81 5% of total revenue [2] - Online sales grew 69 3% YoY, accounting for 69 7% of total revenue, reflecting the company's successful e-commerce strategy [2] - Management raised full-year guidance, expecting revenue growth slightly above 40% and adjusted net profit growth of around 35%, demonstrating confidence in achieving targets [2] - The company's long-term growth is supported by product matrix expansion and omnichannel development, with new products performing well during the 618 shopping festival [2] - The approval timeline for medical aesthetic products has been delayed to 1Q25 due to stricter regulatory requirements, but the impact on profitability is expected to be limited [2] Financial Performance and Forecasts - Revenue is projected to grow from RMB 3 524 million in 2023 to RMB 9 025 million in 2026, with a CAGR of 37 0% [3] - Net profit is expected to increase from RMB 1 452 million in 2023 to RMB 3 322 million in 2026, with a CAGR of 31 0% [3] - The company's gross margin remains strong, forecasted at 82 3% in 2024 and 81 9% in 2026 [3] - ROE is expected to stabilize around 32% from 2024 to 2026, down from 52 0% in 2022, reflecting the company's maturing growth profile [3] - The PE ratio is projected to decline from 25 7x in 2023 to 11 8x in 2026, indicating improving valuation attractiveness [3] Industry Context - Giant Biogene operates in the cosmetics industry, which is highly competitive, particularly in the online channel [2] - The company's focus on collagen-based products and medical aesthetics positions it well in the premium skincare segment [2] - The delay in medical aesthetic product approvals highlights the increasing regulatory scrutiny in the industry [2] Peer Comparison - Among covered cosmetics companies, Giant Biogene has a "Buy" rating, similar to Proya (603605 CH) and Betaine (300957 CH), while Huaxi Biotech (688363 CH) has a "Hold" rating [9] - The target price implies a 2024E PE of 19 8x, which is lower than some peers like Proya (24 4x) but higher than Betaine (14 5x) [9][3]

公司 8 月 19 日公告 24H1 营收 25.4 亿元、同增 58%、环比 2H23增32%，归母净利润9.83亿元、同增47%、环比增25%， 经调整净利润 10.27 亿元、同增 52%、环比增 30%，收入与利 润均超预期。 "线下向线上+敷料向护肤"持续升级下毛利率下降、销售 费用率提升、净利率下降整体可控。1H24 毛利 率同 比1.7%、环比-0.8PCT，销售费用率同比+0.54PC T 、 环 比 +3.35PCT；管理/研发费用率分别同比-0.37/-0.2PCT、环比 +0.02/-0.22PCT；归母净利率 38.7%、同比-2.8PCT，环比2.2PCT。 可复美延续靓丽，大单品矩阵稳步推进，无需过度担忧2H23 高基数效应。1H24 可复美营收 20.71 亿元、同比+69%，大单 品胶原棒势能延续+产品矩阵（焦点/秩序系列持续上新等） 完善拉动继续高增（23H1/H2 同比+101%/+56%）。第一大单品 胶原棒老客复购良好、新客占比高，仍处于快速成长阶段； 全新焦点系列聚焦皮肤亚状态人群（与胶原棒差异 化定 位），焦点面霜起量节奏良好、有望成为下一大单品。据蝉 妈妈+炼丹炉 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported strong performance in H1 2024, with revenue of 2.54 billion yuan, a year-on-year increase of 58.2%, and a net profit attributable to shareholders of 983 million yuan, up 47.4% year-on-year [3] - The company is a leader in the restructured collagen market, with strong brand and product capabilities, and is expected to expand its skin rejuvenation offerings [4] Financial Performance Summary - Revenue and Profit Forecasts: - Total revenue for 2022A was 2.375 billion yuan, increasing to 3.526 billion yuan in 2023A, and projected to reach 5.018 billion yuan in 2024E, representing a year-on-year growth of 42.32% [2] - Net profit attributable to shareholders was 1.002 billion yuan in 2022A, expected to grow to 1.955 billion yuan in 2024E, reflecting a year-on-year increase of 34.66% [2] - Earnings Per Share (EPS) is projected to rise from 1.41 yuan in 2023A to 1.90 yuan in 2024E [9] - The company maintains a high gross margin of 82.4% in H1 2024, slightly down from the previous year due to product type expansion [3] Channel Performance Summary - E-commerce direct sales showed impressive growth, with DTC online sales increasing by 64.1% and online direct sales by 143.3% in H1 2024 [3] - The company has expanded its offline OTC presence, entering approximately 1,500 public hospitals and 2,700 private hospitals and clinics by H1 2024 [3] Brand Performance Summary - The brand "Kefumei" continues to experience high growth, with revenue increasing by 68.6% in H1 2024, while "Keli Jin" grew by 23.6% [3] - The company has launched new products targeting skin sub-health, with the "Focus Series" performing well in the market [3] Profitability Metrics - The company’s sales net profit margin was 38.6% in H1 2024, impacted by stock incentive expenses [3] - The company’s operating profit is projected to grow significantly, with estimates of 2.27 billion yuan in 2024E and 2.91 billion yuan in 2025E [8]

证券研究报告 公司研究 [Table_ReportType] 点评报告 [Table_StockAndRank] 巨子生物(2367.HK) 投资评级 买入 上次评级 买入 [Table_Author] 蔡昕妤 商贸零售分析师 执业编号：S1500523060001 联系电话：13921189535 邮 箱：caixinyu@cindasc.com 信达证券股份有限公司 CINDA SECURITIES CO.,LTD 北京市西城区宣武门西大街甲127号金隅大厦 B座 邮编：100031 [Table_Title] 巨子生物(2367.HK)24H1 点评：重组胶原蛋 白赛道高景气延续，品牌&渠道精细化运营带 动公司业绩亮眼增长 [Table_ReportDate] 2024 年 8 月 20 日 [Table_S 事件：公司发布 ummary] 24H1 业绩，实现收入 25.4 亿元，同增 58.2%，净利润 9.81 亿元，同增 47.2%，经调整后归母净利润 9.83 亿元，同增 47.4%。 点评： [Table_OtherReport] 重组胶原蛋白赛道持续高景气，公司依托可复美+可丽金两大品牌的 ...

证券研究报告 市场表现： 股票数据： 2024 年 8 月 19 日 收盘价（港元） 40.35 一年内最高/最低（港 元） 54.40/28.75 总市值（百万港元） 414.89 基础数据： 2024 年 6 月 30 日 总股本（百万股） 1028.22 总资产（百万元） 7780.64 净资产（百万元） 5974.85 每股净资产（元） 5.80 资料来源：公司公告，wind 医疗保健业 证券分析师 丁一 S1350524040003 dingyi@huayuanstock.com 研究支持 联系人 丁一 S1350524040003 dingyi@huayuanstock.com 相关研究 公司点评 2024 年 08 月 20 日 巨子生物 (2367.HK) 买入（维持） ——24H1 业绩超预期 可复美延续高增态势 投资要点： ➢ 事件：2024 年 8 月 19 日，公司发布 2024H1 半年报，2024H1 实现营收 25.40 亿元（同比 +58.2%，下同），归母净利润 9.83 亿元（+47.4%），经调整净利润 10.27 亿元（+51.8%）。 ➢ 可复美延续高增态势，妆品营收 ...

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company reported strong performance in the first half of 2024, with revenue of 2.54 billion HKD, a year-on-year increase of 58.2%, and a net profit of 980 million HKD, up 47.4% [5][6] - The product structure continues to optimize, with a significant increase in the revenue share of functional skincare products [6][8] - The company is enhancing its brand presence and expanding its offline retail footprint, which is expected to drive future growth [8] Financial Performance - The company's total revenue for the first half of 2024 was 2.54 billion HKD, with a year-on-year growth of 58.2% [5] - The adjusted net profit for the same period was 1.03 billion HKD, reflecting a 51.8% increase year-on-year [5] - The gross margin decreased by 1.7 percentage points to 82.4% due to changes in product sales structure [7] Product and Brand Development - The company's flagship brand, 可复美, achieved revenue of 2.07 billion HKD in the first half of 2024, a 68.6% increase year-on-year [6] - The company has launched new products that have gained significant market traction, including the 可复美焦点面霜 and 可丽金胶卷眼霜 [8] - The company has opened approximately 10 offline stores in key cities, enhancing its brand positioning [8] Sales Channels - Direct-to-consumer (DTC) online sales reached 1.6 billion HKD, up 64.1% year-on-year, while e-commerce platform sales grew by 143.3% [6] - Offline direct sales also saw substantial growth, with a 82.2% increase to 0.7 billion HKD [6] Future Outlook - Revenue forecasts for 2024-2026 have been adjusted upwards to 5.26 billion HKD, 7.34 billion HKD, and 9.66 billion HKD, reflecting increases of 8%, 14%, and 18% respectively [8] - The company is expected to maintain its competitive edge in the collagen beauty product market, with a focus on R&D and product innovation [8]