Investment Rating - The report assigns an "Outperform" rating to the company, with a target price range of HKD 55.90 to HKD 59.40 per share [5]. Core Viewpoints - The company is a leader in collagen protein, with 24 years of R&D strength solidifying its product capabilities in beauty and healthcare. It focuses on functional skincare products, medical devices, and functional foods [1][22]. - In 2023, the company achieved revenue of HKD 35.2 billion, a year-on-year increase of 49.1%, and a net profit of HKD 14.5 billion, up 44.9%, primarily driven by the rapid growth of its functional skincare brand [1][38]. - The collagen market has significant penetration potential, with the Chinese collagen product market expected to grow from HKD 28.8 billion in 2021 to HKD 54.7 billion by 2025, at a compound annual growth rate of 50% [1][45]. Summary by Sections Company Overview - The company is recognized as a global leader in recombinant collagen, having pioneered the development and mass production of recombinant collagen since its establishment in 2000 [22][1]. - It has a concentrated shareholding structure, with the founders holding 59.23% of the shares, ensuring strong management control [28][30]. Financial Analysis - The company reported a significant increase in revenue and net profit in 2023, with revenue from skincare products reaching HKD 35.08 billion, a year-on-year increase of 51.1% [39][38]. - The gross margin and net margin for 2023 were 83.63% and 41.09%, respectively, reflecting a slight decrease from the previous year due to increased sales costs [42][38]. Industry Analysis - The recombinant collagen market is in its early stages of explosive growth, with the company positioned to benefit from its established brand recognition and product offerings [2][1]. - The report highlights the expanding applications of collagen in various sectors, including medical and cosmetic industries, driven by increasing consumer demand for effective skincare solutions [45][1]. Product and R&D - The company has developed a comprehensive collagen molecular library and is actively involved in the rapid industrialization of its products, with a focus on differentiated skincare brands [1][22]. - The report emphasizes the company's commitment to R&D, which has enabled it to maintain a competitive edge in the market [1][22]. Profit Forecast and Valuation - The company is expected to achieve net profits of HKD 17.47 billion, HKD 22.45 billion, and HKD 26.90 billion for the years 2024 to 2026, respectively [2][3]. - The report provides a detailed financial forecast, indicating a strong growth trajectory supported by the anticipated approval of medical injection products [2][3].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 60.83, representing a potential upside of 22.0% from the current price of HKD 49.85 [1][3][20]. Core Views - The company is expected to benefit from a strong product cycle, with significant sales performance anticipated during the upcoming promotional period [1]. - The company has announced a placement of 33.22 million shares at HKD 49.40 per share, raising approximately HKD 1.627 billion, primarily for core business development and ecosystem layout [1]. - The company has a robust cash position, with net cash of HKD 2.5 billion and financial assets of HKD 1.27 billion as of the end of 2023, which will support brand building and product line expansion [1]. Financial Summary - Sales revenue is projected to grow from RMB 3.524 billion in FY23 to RMB 4.636 billion in FY24, reflecting a year-on-year growth of 31.6% [2]. - Adjusted net profit is expected to increase from RMB 1.452 billion in FY23 to RMB 1.828 billion in FY24, with an adjusted EPS of RMB 1.03 for FY24 [2]. - The gross margin is forecasted to remain stable around 83% for FY24 and FY25 [2]. Product Performance - The company has launched several new products under its brands, including the "Focus Series" and "Order Series," which have shown strong sales performance on platforms like Tmall and Douyin [1]. - The "Collagen Stick" is expected to contribute over 30% of the brand's revenue, with significant sales recorded during promotional events [1]. Market Position - The company is well-positioned to leverage its product offerings during major sales events, with expectations of strong sales growth for its new product lines [1]. - The report highlights the company's ability to maintain a competitive edge in the functional skincare market, anticipating regulatory approval for injectable collagen products within the year [1].

Financial Performance - Revenue for 2023 reached RMB 3,524.1 million, a 49.0% increase from RMB 2,364.4 million in 2022[7] - Gross profit for 2023 was RMB 2,947.1 million, reflecting a 47.7% growth compared to RMB 1,995.2 million in 2022[7] - Net profit for 2023 amounted to RMB 1,448.2 million, up 44.6% from RMB 1,001.6 million in 2022[7] - Pre-tax profit for 2023 was RMB 1,745.1 million, a 48.2% increase from RMB 1,177.7 million in 2022[7] - Adjusted net profit for 2023 (non-IFRS measure) was RMB 1,468.7 million, a 39.0% increase from RMB 1,056.4 million in 2022[7] - Total revenue for the year ended December 31, 2023, was RMB 3,524.1 million, a 49.0% increase from RMB 2,364.4 million in 2022[34] - Total revenue for 2023 was RMB 3,524.1 million, up 48.9% from RMB 2,364.4 million in 2022[42] - Gross profit for 2023 was RMB 2,947.1 million, a 47.7% increase from RMB 1,995.2 million in 2022, with a gross margin of 83.6%[48] - Basic earnings per share rose by 50.5% to RMB 1.49 in 2023, compared to RMB 0.99 in 2022[56] Research and Development - Research and development investment increased by 70% year-on-year in 2023, with 93 patents granted or pending[10] - Research and development expenses amounted to RMB 750 million, a 70.5% increase year-on-year, accounting for 2.1% of revenue[15] - The company holds 93 authorized and pending patents, with 13 new patents added during the reporting period[16] - The company plans to increase R&D investment in 2024 to enhance product categories and clinical approval for medical devices[33] - The company is investing in R&D for new technologies, with a budget allocation of $10 million for the upcoming year[149] Sales and Distribution - Direct sales channel revenue grew over 70% year-on-year, with 4,000 offline locations and over 6,000 supermarkets entered[11] - Direct sales revenue amounted to RMB 2,420.5 million, accounting for 68.7% of total revenue, with a year-on-year increase of 9.4 percentage points[29] - Revenue from professional skincare products reached RMB 2,647.3 million, accounting for 75.1% of total revenue, up from 66.0% in 2022[35] - Revenue from sales to distributors was RMB 1,103.6 million, a 14.6% increase, making up 31.3% of total revenue[40] - Revenue from online direct sales on e-commerce platforms increased by 42.7% to RMB 177.5 million, accounting for 5.0% of total revenue[38] - Offline direct sales revenue rose by 39.6% to RMB 88.5 million, representing 2.5% of total revenue[39] Brand Performance - The Kefu Mei brand generated nearly RMB 2.8 billion in revenue, growing over 70% year-on-year[14] - Brand revenue for 可复美 reached RMB 2,788.3 million, representing a 72.9% increase compared to the same period in 2022[22] - 可丽金 achieved brand revenue of RMB 616.6 million, remaining flat compared to the same period in 2022[24] - During the 618 shopping festival, 可复美 and 可丽金's online GMV growth exceeded 165% and 70% respectively, while during the Double Eleven festival, growth exceeded 100% and 50% respectively[29] Corporate Governance - The company is committed to high standards of corporate governance to protect shareholder interests[153] - The board consists of executive directors and independent non-executive directors, ensuring compliance with listing rules regarding independence[156][157] - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions during the reporting period, except for a deviation regarding the separation of roles between the chairman and CEO[153][159] - The company has established a board diversity policy that considers various diversity indicators, including gender, age, cultural background, and professional qualifications[185] Employee Management - As of December 31, 2023, the company had a total of 1,164 full-time employees, with 33.8% in production, 14.2% in R&D, 33.5% in sales and marketing, and 18.5% in general and administration[108] - The company has implemented a comprehensive training program for new and existing employees to ensure competency in their roles[108] - The company aims to recruit employees with relevant educational backgrounds or industry experience through campus recruitment and experienced hiring[190] Future Outlook - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion[149] - Plans for market expansion include entering three new international markets by Q4 2024, targeting a 20% increase in market share[149] - The company is considering strategic acquisitions to enhance its product portfolio, with potential targets identified in the biotech sector[149] Risk Management - The company faces various operational risks, including changes in the regulatory environment in China and competition from other market participants[195] - The company has established a risk management and internal control system to address operational risks, which includes policies and procedures deemed suitable for its business operations[195] - The company conducts annual risk identification and assessment to improve its risk management system and may set occupational health and safety goals as needed[197] Awards and Recognition - The company received multiple quality and sustainability awards, including "National Quality Integrity Benchmark Enterprise" and "Green Factory of Shaanxi Province" in 2023[31] - The company has received multiple awards for technological innovation and contributions to the field, highlighting its commitment to excellence[151]

证券研究报告 公 2024年04月25日 司 报 告 巨子生物（02367） │ 行 业： 美容护理/化妆品 港 投资评级： 买入（维持） 股 - 可复美大单品放量延续，关注医美产品获批催化 当前价格： 48.00港元 公 目标价格： 61.29港元 司 点 事件： 基本数据 评 研 公司发布2023年年报：2023年营收35.24亿元（同比+49.0%），归母净利 总股本/流通股本(百万股) 995.00/995.00 究 润14.52亿元（同比+44.9%），经调整净利润14.69亿元（同比+39.0%）。 流通市值(百万港元) 47,760.00 ➢ 可复美线上直销驱动，可丽金渠道结构调整期 每股净资产(元) 3.83 受益于线上多平台精细化运营与可复美胶原棒精华快速放量，2023年线上 资产负债率(%) 9.30 直销收入同比增长77.5%/营收占比提升至61.2%。可丽金2023年处于渠道 一年内最高/最低(港元) 48.20/28.40 调整期与产品培育期，收入同比基本持平。受品类结构与渠道结构调整影 响，2023年综合毛利率由2022年的84.4%降至83.6%，归母净利率由42.4% 股价相对 ...

Company Overview - The report focuses on Giant Biogene (2367 HK), a company specializing in recombinant collagen-based skincare products and rare ginsenoside-based health supplements [1] - The company is the first globally to achieve mass production of recombinant collagen skincare products and the first in China to obtain a medical device registration certificate for recombinant collagen products [3] - Giant Biogene has a portfolio of 8 major brands with over 100 product SKUs as of the end of 2023 [19] Industry Analysis Recombinant Collagen Market - The recombinant collagen market is expected to grow rapidly, with penetration increasing from 15 9% in 2017 to 62 3% by 2027 [2] - Recombinant collagen offers advantages over animal-derived collagen, including higher bioactivity, better biocompatibility, lower immunogenicity, and easier transportation and storage [13] - The market size for recombinant collagen in functional skincare, medical dressings, and skin rejuvenation is projected to reach 64 5 billion, 25 5 billion, and 12 1 billion yuan respectively by 2027, with a total market size of 108 3 billion yuan [17] Rare Ginsenoside Market - Rare ginsenosides, derived from ginseng, have stronger biological activity and are more easily absorbed by the human body compared to prototype ginsenosides [18] - The market size for rare ginsenoside-based health foods in China is expected to grow from 645 4 million yuan in 2021 to 1 56 billion yuan by 2027 [18] Business Performance - In 2023, the company achieved revenue of 3 52 billion yuan, a 49 05% year-on-year increase, and net profit of 1 45 billion yuan, a 44 59% increase [23] - The flagship brand Kefumei contributed 79 1% of total revenue, growing 72 9% year-on-year to 2 79 billion yuan [23] - The company's gross margin was 84 4% in 2023, with a net profit margin of 41 09% [23] Growth Drivers - The company is expected to obtain two new Class III medical device registrations in 2024 for recombinant collagen liquid and solid formulations, targeting anti-aging applications [4] - The company expanded its production capacity in 2023, adding 2 new recombinant collagen production lines, 4 cosmetic production lines, and 2 medical device production lines [22] - Online sales channels showed strong growth, with Kefumei and Kelijing achieving GMV growth rates exceeding 165% and 70% respectively during the 618 shopping festival [20] Financial Projections - Revenue is forecasted to grow from 4 83 billion yuan in 2024 to 8 07 billion yuan in 2026, representing a CAGR of 29 52% [35] - Net profit is projected to increase from 1 80 billion yuan in 2024 to 2 76 billion yuan in 2026 [35] - EPS is expected to grow from 1 81 yuan in 2024 to 2 78 yuan in 2026 [35] Valuation - The report gives a 6-month target price of 61 54 yuan per share, representing a 21 74% upside from the current price [43] - The company is valued at 24X-35X PE, corresponding to a reasonable valuation range of 43 44-63 35 yuan per share [37] - Using DCF valuation, the intrinsic value per share is estimated at 63 62 yuan [39]

证券研究报告 | 年报点评报告 2024年04月12日 巨子生物（02367.HK） 公司业绩实现亮眼高增，稳步推进妆械协同发展 2023年业绩亮眼，营收/归母净利润分别同增49%/45%。2023年公司实现营业 买入（维持） 收入35.24亿元（yoy+49.0%），实现归母净利润14.52亿元（yoy+44.9%），实 股票信息 现经调整净利润 14.69 亿元（yoy+39.0%）。2023 年公司毛利率为 83.6%，同比 -0.8pcts，主要系销售成本增加及产品结构变化；费用率方面，销售费用率为33.0%， 行业 生物技术 同比+3.1pcts，主要系线上直销渠道快速扩张致营销投入增加；管理费用率为2.7%， 前次评级 买入 同比-2.0pcts，主要系上市费用开支减少；研发费用率为 2.1%，同比+0.2pcts，主 4月11日收盘价(港元) 42.65 要系公司持续投入基础研究与产品研发及研发人员薪酬增加。2023年公司整体经调 总市值(百万港元) 42,436.75 整净利率41.7%，同比-3.0pcts。 总股本(百万股) 995.00 功效性护肤品收入同增69.5%，研发储备驱动品牌势 ...

Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Insights - The company reported a revenue of 3.524 billion yuan in 2023, representing a year-on-year growth of 49.05%. The net profit attributable to the parent company was 1.452 billion yuan, up 44.88% year-on-year, with an adjusted net profit of 1.469 billion yuan, reflecting a 39.03% increase. The diluted EPS was 1.48 yuan, marking a 51.02% growth. The company plans to distribute a dividend of 0.44 yuan per share (tax included) and a special dividend of 0.45 yuan per share (tax included) [4][6][9] Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 3.524 billion yuan, a 49.05% increase from the previous year. The net profit attributable to the parent company was 1.452 billion yuan, up 44.88%, and the adjusted net profit was 1.469 billion yuan, reflecting a 39.03% increase. The diluted EPS was 1.48 yuan, a growth of 51.02% [4][6][9] - The gross profit margin decreased by 0.76 percentage points to 83.63% due to the expansion of product lines from medical dressings to skincare products [4][5] Product and Brand Performance - The professional skin care segment generated 3.508 billion yuan in revenue, a 51.10% increase, accounting for 99.55% of total revenue. The efficacy skincare products contributed 2.647 billion yuan, growing 69.52% and representing 72.12% of the main business revenue [4][5] - The company's main brand, "可复美," generated 2.788 billion yuan, a 72.86% increase, while "可丽金" saw a slight decline in revenue to 103 million yuan, down 0.29% [4][5] Sales Channels - Direct sales through online DTC channels reached 2.155 billion yuan, a 77.49% increase, accounting for 61.14% of main business revenue. Online e-commerce platforms contributed 178 million yuan, up 42.57% [4][10] - The company has expanded its offline presence, covering approximately 1,500 public hospitals and 2,500 private hospitals and clinics by the end of 2023 [4][5] Future Outlook - The company is expected to achieve revenues of 4.670 billion yuan, 5.927 billion yuan, and 7.451 billion yuan in 2024, 2025, and 2026, respectively, with year-on-year growth rates of 32.51%, 26.93%, and 25.71% [6][9] - The adjusted net profit is projected to be 1.867 billion yuan, 2.192 billion yuan, and 2.657 billion yuan for the same years, with growth rates of 27.10%, 17.45%, and 21.20% [9][13]

证券研究报告 ＃industryId＃ 消费行业 ＃02367.HK ＃巨dy子Com生pa物ny＃ 港股通（沪、深） ＃title＃ ＃investSuggestion＃ ＃ 持续扩充护肤品矩阵，注射产品即将上市 增持 维持 ( ） ＃createTime1＃ 2024年4月3日 投资要点 ＃市场ma数rk据etData＃ ＃ sum直ma销ry＃ 渠道收入快速增长：公司 2023 年收入 35.24 亿元人民币，同比增长 日期 2024.4.2 49.0%，其中DTC线上直销/电商平台线上直销/线下直销/经销商渠道收入 收盘价(港元) 43.85 分 别 为 21.55/1.78/0.89/11.04 亿 元 人 民 币 ， 占 比 分 别 为 总股本(亿股) 9.95 61.2%/5.0%/2.5%/31.3% ， 收 入 分 别 同 比 变 动 总市值(亿港元) 436 +77.5%/+42.7%/+39.6%/+14.6%，DTC线上直销渠道增速主要受益于精细化 总资产(亿元) 49.7 运营下天猫及抖音等渠道成长、精华类产销售等。录得毛利率83.6%，同比 净资产(亿元） 43.7 下降0.8个 ...

%% research.95579.com %% 丨证券研究报告丨 港股研究丨公司点评丨巨子生物（ ） 2367.HK [巨Ta子b生le_物Title] 年年报点评： 2023 业绩超出预期，肌肤焕活产品顺利推进 报告要点 [2T0a2b3le年_S巨um子m生a物ry营] 业收入为35.24亿元，同比增长49%，归母净利润为14.5亿元，同比增长 45%，实现经调净利润 14.7 亿元，同比增长 39%。公司董事会建议派发年末股息 0.44 元/股 （4.37亿元），以及特别股息0.45元/股（4.44亿元），合计8.81亿元。 ...

Investment Rating - The investment rating for the company is "Buy" [3]. Core Views - The company reported a revenue of 3.524 billion yuan, an increase of 49% year-on-year, and a net profit attributable to shareholders of 1.452 billion yuan, up 44.9% [2]. - The company has a strong focus on expanding its cosmetic product line and advancing the approval process for injectable products [2]. - The company maintains a high dividend payout ratio of 61%, with a final dividend of 0.44 yuan per share and a special dividend of 0.45 yuan per share [2]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 35.24 billion yuan (+49%) and a net profit of 14.52 billion yuan (+44.9%) [2]. - Adjusted net profit, excluding share-based payments, was 14.69 billion yuan (+39%) [2]. - The gross margin was 83.6% (-0.8 percentage points), primarily due to the increased proportion of lower-margin cosmetic products [2]. - The net profit margin was 41.2% (-1.2 percentage points) [2]. Product Segments - The "Kefumei" brand saw a revenue increase of 73%, contributing approximately 80% of total revenue [2]. - The "Kailijin" brand experienced a slight decline in revenue by 0.3%, attributed to brand positioning and product strategy adjustments [2]. - The company is actively developing four new skin rejuvenation products and has a broad application space for collagen injectables [2]. Sales Channels - Direct-to-consumer (DTC) sales continued to grow, with DTC online revenue reaching 21.5 billion yuan (+77.5%), accounting for 61% of total revenue [2]. - The company has established a distribution network covering approximately 1,500 public hospitals, 2,500 private clinics, 6,000 chain pharmacies, and 650 CS/KA stores [2]. Future Projections - The company is projected to achieve revenues of 45.9 billion yuan, 57.5 billion yuan, and 69.9 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 30.4%, 25.1%, and 21.6% [6]. - Net profit is expected to grow by 23.8%, 18.9%, and 17.8% for the same years, with corresponding EPS of 1.81, 2.15, and 2.53 yuan [6].