PACIFIC SECURITIES(SH:601099) Zhi Tong Cai Jing·2025-09-10 03:12Core Viewpoint - Pacific Securities has issued a "buy" rating for Giant Bio (02367), projecting revenue growth rates of 27%/25%/20% for 2025-2027 and net profit growth rates of 21%/28%/21% for the same period, with a target price of HKD 65.49 [1] Financial Performance - In H1 2025, the company achieved total revenue of CNY 3.113 billion, a year-on-year increase of 22.5%, and a net profit attributable to shareholders of CNY 1.182 billion, up 20.2% year-on-year [1] - Adjusted net profit for H1 2025 was CNY 1.205 billion, reflecting a year-on-year increase of 17.4% [1] Brand Performance - For H1 2025, the brands Kefu Mei and Keli Jin generated revenues of CNY 2.542 billion and CNY 503 million, accounting for 81.7% and 16.1% of total revenue, respectively, with year-on-year growth rates of 22.7% and 26.9% [2] - Kefu Mei's growth has slowed due to a public relations incident in Q2, while Keli Jin has shown strong growth, particularly with its upgraded "Collagen Big Mask King" product [2] Channel Performance - In H1 2025, direct sales and distribution generated revenues of CNY 2.325 billion and CNY 787 million, respectively, with year-on-year growth rates of 26.5% and 12.1% [3] - Direct sales accounted for 74.7% of total revenue, with significant growth in online direct sales through e-commerce platforms, particularly on JD.com [3] Profitability Metrics - The company's gross margin for H1 2025 was 81.68%, a decrease of 0.7 percentage points year-on-year, primarily due to a shift in product mix towards lower-margin functional skincare products [4] - The net profit margin for H1 2025 was 38.0%, down 0.6 percentage points year-on-year [4]