Core Viewpoint - The company has received approval from the National Medical Products Administration for its self-developed "Recombinant Type I α1 Collagen Freeze-Dried Fiber," marking a significant advancement in the medical aesthetics sector and enhancing its competitive position in the market [1]. Industry Summary - The market for recombinant collagen in China is projected to reach 54.7 billion yuan by 2025, with the medical aesthetics segment expected to grow to 7 billion yuan, driven by high biocompatibility and low allergenic risk [2]. - The company is positioned as the second domestic entity to receive approval for recombinant collagen, allowing it to benefit from industry expansion [2]. Company Summary - The company's recombinant collagen product is designed to improve skin structure and reduce dynamic wrinkles, showcasing its technological advantages and creating a barrier to entry for competitors [1]. - Despite short-term sales fluctuations in skincare products due to reduced collaborations, the company maintains strong brand recognition and product efficacy, with expectations for recovery through optimized channel structures and scientific marketing [2]. - The company plans to expand the application of recombinant collagen beyond skincare and medical aesthetics to include hair growth and whitening, while also exploring international market opportunities [2]. - Revenue forecasts for 2025-2027 have been adjusted to 6.917 billion, 8.540 billion, and 10.419 billion yuan respectively, with net profits projected at 2.452 billion, 2.989 billion, and 3.603 billion yuan [2].

Core Insights - The recombinant collagen injection material market is seeing new entrants, with Juzi Bio (2367.HK) receiving approval for its recombinant type I collagen product for facial dermal filling, potentially disrupting the dominance of Jinbo Bio (920982.BJ) [1][2] Company Developments - Juzi Bio's product is composed of recombinant type I collagen, specifically a sequence of 753 amino acids, which does not have a triple helix structure, and is aimed at correcting dynamic facial wrinkles [1][2] - Jinbo Bio previously held a monopoly in the recombinant collagen injection market, with projected revenues of 1.443 billion yuan for 2024, reflecting over 80% year-on-year growth [2] Market Dynamics - The materials used by Juzi Bio and Jinbo Bio differ, with Juzi's focusing on type I collagen for structural support, while Jinbo's core material is type III collagen, which is responsible for elasticity [3] - Both companies have received approval for similar indications related to facial dermal filling, indicating that competition in the market is likely to intensify as more products gain regulatory approval [3]

Core Insights - A competitive battle is emerging in the collagen protein market, highlighting two regional female tycoons, Fan Daidi from Shaanxi and Yang Xia from Shanxi, who are leading their respective companies, Juzhi Biotechnology and Jinbo Biotechnology, into the spotlight [1] Group 1: Market Dynamics - Both companies are shifting focus towards the C-end beauty market, particularly in the live e-commerce space, as evidenced by the rapid rise of the new brand "Tongping" during major shopping events [2][4] - The brand "Tongping" achieved significant sales during the Double 11 event, with a GMV growth rate ranking second in Li Jiaqi's live broadcast, while Juzhi's own brand, Kefu Mei, ranked seventh [2][6] Group 2: Company Performance - Juzhi Biotechnology's stock price has been on a downward trend, hitting a year-low of 40.40 HKD per share, with a total market capitalization dropping to 43.3 billion HKD [2][3] - Jinbo Biotechnology's stock has also faced declines, closing at 256.51 CNY per share with a total market value of 30.032 billion CNY as of October 24 [2] Group 3: Product and Brand Strategy - "Tongping" was launched in September 2024, focusing on technology-driven skincare solutions, with a limited number of core products [5][6] - The brand's rapid growth is attributed to strategic partnerships with top influencers, leading to significant sales during promotional events [6][8] Group 4: Technological and Competitive Landscape - The competition is intensifying as Jinbo Biotechnology transitions from B-end medical devices to C-end functional skincare, indicating a broader shift in the industry [3][11] - Jinbo Biotechnology has provided technological support to "Tongping," utilizing its patented collagen components in the brand's products, showcasing a close relationship between the two entities [9][10] Group 5: Investment and Future Outlook - Jinbo Biotechnology has recently secured investment from Zhong Shanshan, founder of Nongfu Spring, indicating strong backing for its strategic initiatives [11] - The ongoing competition reflects a blurring of lines between pharmaceutical and beauty companies, as the functional skincare market evolves from a blue ocean to a red ocean, with both companies vying for market leadership [11]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company has successfully obtained approval for its self-developed "Recombinant Type I α1 Collagen Freeze-Dried Fiber," marking it as the first of its kind in China, with various specifications suitable for facial dermal tissue filling [2] - The recombinant collagen market in China is projected to reach 54.7 billion yuan by 2025, with the medical aesthetics market expected to grow to 7 billion yuan, indicating significant growth potential for the company [3] - The company is positioned as the second domestic enterprise to receive approval for recombinant collagen, allowing it to benefit from industry expansion [3] - The skincare segment is currently facing short-term sales fluctuations but is expected to stabilize and recover through optimized channel structures and strong brand recognition [4] Summary by Sections Medical Aesthetics - The company's recombinant collagen product showcases technical advantages and strengthens its leading position in the market, with a focus on improving skin structure and reducing dynamic wrinkles [3] - The product's unique formulation and research barriers enhance its market competitiveness [3] Skincare Products - Short-term sales have been impacted by a reduction in collaboration with influencers, but the brand's strength and product recognition remain robust [4] - The company aims to recover sales through channel optimization and continued consumer confidence driven by scientific marketing [4] Financial Projections - Revenue forecasts for 2025-2027 are adjusted to 6.917 billion, 8.540 billion, and 10.419 billion yuan respectively, with net profits projected at 2.452 billion, 2.988 billion, and 3.603 billion yuan [5] - The earnings per share (EPS) for the same period are expected to be 2.29, 2.79, and 3.36 yuan, with corresponding price-to-earnings (PE) ratios of 17, 14, and 11 times [5][8]

Group 1 - The core viewpoint of the report is that Zhuhai International maintains a "Buy" rating for Giant Bio (02367) with a target price of HKD 58.35, despite short-term pressures on online sales for Kefu Mei [1] - Kefu Mei's online sales performance during the first phase of Double Eleven was relatively weak, with an estimated year-on-year decline of 10% in online revenue for the second half of 2025, leading to an overall growth rate of approximately 5% for the year [1] - In contrast, Keli Jin is expected to achieve a high growth rate of about 40% in online revenue for the year, while offline business is projected to maintain steady growth [1] Group 2 - The company has adjusted its revenue growth forecast for Kefu Mei from a CAGR of 26% to 14.5% for the years 2025 to 2027 due to the anticipated short-term pressure on online sales [1] - Giant Bio's first injectable recombinant collagen product, recombinant type I α1 collagen lyophilized fiber, has been approved for market launch, aimed at facial dermal tissue filling to correct dynamic wrinkles, including frown lines, forehead lines, and crow's feet [1] - This approval signifies the completion of the company's full product matrix layout for aesthetic injections, post-surgical recovery dressings, and functional skincare [1] Group 3 - The company has two additional injectable collagen products currently in the approval stage: 1) Injectable recombinant collagen filler for moderate to severe neck wrinkles, prioritized for medical device approval by December 2024; 2) Recombinant collagen implant, with a registration application submitted in August 2025 as a drug-device combination, which has been accepted and is under review [2] - The approval of these products is expected to further enrich the company's aesthetic product matrix, covering a range of anti-aging scenarios from forehead to facial and neck areas, addressing dynamic wrinkle improvement to overall skin texture enhancement [2]

Core Insights - The collagen market is experiencing significant growth driven by increasing consumer focus on efficacy and ingredients, with two main growth drivers: professional skin care and aesthetic injection applications [1][3] - The collagen market in China is projected to exceed 16 billion yuan at the raw material level and approach 270 billion yuan at the retail level by 2030 [1] - The industry is currently in a phase of policy refinement, accelerated technological iteration, and tight collaboration across the supply chain [1] Industry Structure - The collagen industry has a high degree of integration between raw material supply and end product manufacturing, with upstream suppliers, midstream manufacturers of recombinant collagen, and downstream sales channels [2] - The market is characterized by significant growth potential, high technological barriers, and intense competition [2] End-User Applications - The demand for professional skin care products that combine medical safety and cosmetic efficacy is rapidly increasing, particularly in the aesthetic medicine sector [3] - Applications of collagen products are expanding from traditional moisturizing and nourishing functions to include core roles in aesthetic injection materials [3] Recommended Companies - Companies to watch include: Giant Bio (02367), Jinbo Bio (920982.BJ), Marubi Bio (603983.SH), Huaxi Bio (688363.SH), Fulejia (301371.SZ), Novozymes (688105.SH), Baipusais (301080.SZ), and Betaini (300957.SZ) [4]

Core Viewpoint - Company maintains a "buy" rating for Giant Bio (02367) based on breakthroughs in its medical aesthetics business and steady growth in medical dressings and functional skincare products, with EPS forecasts for 2025-2027 at 2.35, 2.83, and 3.38 yuan respectively [1] Group 1: Regulatory Approval and Product Development - The approval of the recombinant type I α1 collagen freeze-dried fiber medical device marks a significant regulatory breakthrough for the company, opening new growth avenues in the medical aesthetics sector [1] - The approved product utilizes a human-derived sequence, demonstrating excellent biocompatibility and safety, suitable for facial dermal tissue filling to correct dynamic wrinkles [1] - The company is expanding its product matrix with liquid, gel, and cross-linked gel formulations, enhancing its competitive edge in the recombinant collagen field [2] Group 2: Technological Differentiation and Market Position - The company has developed a diverse molecular library of over 50 types of recombinant collagen, achieving extensive coverage in type research, including full-length chains and truncated segments [2] - The approved type I collagen product fills a market gap in the injection field, differentiating itself from existing type III collagen products [2] - The company is also advancing type IV and type XVII collagen for applications in thermal injury repair and hair regeneration, showcasing its comprehensive technical accumulation and product layout capabilities [2] Group 3: Commercial Prospects and Financial Impact - The approval will elevate the company's medical device business from class II auxiliary materials to class III injections, significantly boosting revenue in this segment [3] - Future injection products are expected to see price increases based on existing class II products, driving gross margin improvements [3] - The existing class II product, Collagen Star Light Bottle, has a terminal price of approximately 2000 yuan for 4ml, indicating strong market willingness to pay and brand recognition for the company's recombinant collagen products [3] - With established channel foundations and market recognition, the company's new injection products are anticipated to gain rapid acceptance and commercialization, driving overall performance and valuation upward [3]

Core Viewpoint - Guojin Securities maintains a "buy" rating for Juzhi Biotechnology (02367), citing breakthroughs in the medical aesthetics business and steady growth in medical dressings and functional skincare products, alongside the gradual dissipation of short-term public sentiment impacts. The forecasted EPS for 2025-2027 is 2.35/2.83/3.38 yuan [1]. Group 1: Regulatory Approval and Product Development - The approval of the solid lyophilized fiber preparation marks a significant breakthrough in regulatory barriers for the company, being the first approved drug-device combination product in its Class III medical device pipeline [1]. - The approved product utilizes a human-derived sequence with 753 amino acids, demonstrating excellent biocompatibility and safety, suitable for facial dermal tissue filling to correct dynamic wrinkles [1]. - The company is expanding its product matrix with liquid, gel, and cross-linked gel formulations, enhancing its comprehensive competitiveness in the field of recombinant collagen [1]. Group 2: Technological Differentiation and Market Positioning - The company has established a diverse library of over 50 recombinant collagen molecules, achieving extensive layout in type development, including full-length chains and truncated segments [2]. - The approved Type I collagen fills a market gap in the injection field, creating clear differentiation from existing Type III collagen products [2]. - The company is also advancing Type IV and Type XVII collagen for applications in thermal injury repair and hair regeneration, showcasing comprehensive technical accumulation and product layout capabilities across multiple indications [2]. Group 3: Commercial Prospects and Financial Performance - The approval of the Class III medical device will elevate the company's medical device business from Class II auxiliary materials to Class III injections, significantly boosting revenue in this segment [3]. - Future injection products are expected to achieve price increases based on existing Class II products, driving gross margin improvements [3]. - The existing Class II product, Keli Gold Star Bottle, has an average terminal price of 2000 yuan/4ml, validating the market's high willingness to pay and brand recognition for the company's recombinant collagen products [3]. - With established channel foundations and market recognition for recombinant collagen, the company's new injection products are anticipated to rapidly gain acceptance and commercialize faster than the industry average, driving overall performance and valuation upward [3].

Investment Rating - The report does not explicitly state an investment rating for Giant Biogene, but it highlights the company's strong market position and potential for growth in the medical aesthetics sector. Core Insights - Giant Biogene's "Recombinant Type I α1 Collagen Lyophilized Fiber" received Class III Medical Device Registration from NMPA on October 21, 2024, marking its entry into the medical aesthetics injectables market [1][7]. - The approved Type I collagen is distinct from the Type III collagen already marketed by Jinbo Bio, allowing for unique product positioning [2][8]. - The product utilizes a long amino acid sequence (753 amino acids) and achieves high purity (99.9%), which are critical for its bioactivity and safety [3][9]. - The company has established a significant first-mover advantage with six operational production lines, exceeding ten tons of annual capacity, which supports rapid commercialization [4][10]. - The regulatory landscape for collagen injectables is stringent, with only 11 products approved from 7 companies, positioning Giant Biogene favorably against competitors [5][11]. - The approval paves the way for additional product applications, with two other medical aesthetic products currently under review [12]. Summary by Sections Product Approval - Giant Biogene's recombinant collagen product is approved for facial dermal tissue filling to correct dynamic wrinkles, showcasing the company's capabilities from R&D to commercial production [1][7]. Technical Differentiation - The company's collagen product is molecularly distinct from existing products, utilizing a specific amino acid sequence that does not form a triple-helical structure, reflecting advanced regulatory understanding [2][8]. - The proprietary molecular library of over 50 recombinant collagen molecules provides a solid foundation for future product iterations [3][9]. Production Capacity - The company has built a high-purity production line since 2021 and expanded its capacity to six lines, ensuring a robust supply chain for commercialization [4][10]. Market Landscape - The high regulatory barriers in the collagen injectables market favor established players like Giant Biogene, which benefits from superior biocompatibility and lower production costs compared to traditional animal-derived collagen [5][11]. Future Prospects - The approval of the current product is expected to accelerate the approval process for additional products, enhancing the company's product portfolio in the medical aesthetics market [12].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 85.00 [1][10]. Core Insights - The company has received approval for its recombinant type I α1 collagen freeze-dried fiber, marking it as China's first recombinant type I natural sequence collagen facial injection product, primarily used for dermal filling to correct dynamic wrinkles [1][6]. - The product is expected to potentially achieve sales exceeding RMB 1 billion in the medium to long term, with a favorable profit margin [6][10]. - The company is actively tracking its product strategy and market promotion pace, despite short-term stock price fluctuations due to market concerns regarding its cosmetic business performance [6][10]. Financial Projections - Revenue projections for the company are as follows: - 2024: RMB 5,539 million (+57.17%) - 2025E: RMB 7,115 million (+28.45%) - 2026E: RMB 8,777 million (+23.37%) - 2027E: RMB 10,461 million (+19.18%) [5][19]. - Net profit attributable to the parent company is projected to be: - 2024: RMB 2,062 million (+42.06%) - 2025E: RMB 2,600 million (+26.07%) - 2026E: RMB 3,203 million (+23.18%) - 2027E: RMB 3,812 million (+19.03%) [5][19]. Market Position and Competitive Landscape - The company is positioned in a market with few leading players in injectable recombinant collagen, with competitors like Jinjibo focusing on recombinant type III humanized collagen products [7][10]. - The company’s product pipeline includes a recombinant collagen implant product that has been accepted for review, indicating potential for further expansion in the recombinant collagen medical device market [8][10]. Brand Performance - The company's brands, Kefu Mei and Keli Jin, have shown recovery in Q3 2025, with online GMV reaching RMB 615 million and RMB 72 million respectively, reflecting year-on-year growth of 20% and 17% [9][10]. - The company has also expanded its international presence, entering 13 Watsons stores in Singapore with multiple product lines [9][10].