Core Viewpoint - CICC has downgraded the net profit forecast for Giant Bio (02367) for 2025-2026 by 25% and 33% to 1.91 billion and 2.14 billion yuan respectively, citing short-term pressure on cosmetics sales. The current stock price corresponds to a P/E ratio of 20x for 2025 and 18x for 2026. The target price has been reduced by 20% to 56 HKD, which implies a potential upside of 41% based on the adjusted earnings forecast [1]. Company Current Situation - On December 2, the company announced a plan to repurchase up to 104 million shares, accounting for 10% of the issued shares, and is communicating its strategic plans for 2026 regarding product matrix expansion, brand operation, and channel development. This repurchase reflects management's confidence, and the company’s R&D capabilities, brand recognition, and team cohesion remain strong, suggesting potential operational improvements through optimized product structure and timely operational adjustments [2][3]. Product and Channel Expansion Plans - The company has a rich reserve of new products for 2026, with plans to launch four key new products in the collagen repair series and expand channel coverage for existing brands. The company aims to strengthen its online presence and expand offline channels, including clinics and self-operated stores, with successful initial steps in Southeast Asia. The contribution from second-tier products is expected to increase, driving healthy growth in the cosmetics business [4]. Medical Aesthetics Growth - The medical aesthetics team is expanding, with strong experience in developing star products and commercial preparations progressing smoothly. The company’s R&D strength, brand recognition, and team cohesion are expected to support long-term growth, especially as the cosmetics market recovers and the medical aesthetics segment contributes additional growth [5].
中金：维持巨子生物跑赢行业评级 下调目标价至56港元