Core Viewpoint - Morgan Stanley has downgraded the sales guidance for Giant Bio (02367) for 2025 from a growth of 25% to flat or slight decline [1] Group 1: Revenue Forecasts - Morgan Stanley has reduced revenue forecasts for Giant Bio for 2025, 2026, and 2027 by 20%, 32%, and 35% respectively [1] - The net profit for 2025 and 2026 is expected to decline by 8% year-on-year, with a rebound of 20% anticipated in 2027 [1] Group 2: Market Conditions - The company initially expected a sales growth of 20% to 30% during Q4 and the Double Eleven shopping festival, but failed to meet these targets due to industry headwinds [1] - Intense price competition for similar products and declining returns on investment from live-streaming sales have led the company to prioritize price stability and profitability, resulting in a sales decline and weakened operating leverage [1] Group 3: Future Strategies - Morgan Stanley anticipates that the company will take various actions to drive sales recovery, including increasing marketing investments to counteract previous controversies and rebuild brand momentum [1] - The company is expected to reduce reliance on live-streaming sales and promotional events like Double Eleven and 618 [1] - A new beauty injection product is set to launch in 2026, which is expected to have a limited initial contribution but confirms that the company's past R&D efforts are still in the early stages of commercialization [1]

Core Viewpoint - Morgan Stanley has downgraded the sales guidance for Giant Bio (02367) for 2025 from a growth of 25% to flat or slight decline, reflecting challenges in the industry [1] Group 1: Revenue Forecasts - Morgan Stanley has reduced revenue forecasts for Giant Bio for 2025, 2026, and 2027 by 20%, 32%, and 35% respectively [1] - The firm anticipates a year-on-year net profit decline of 8% for 2025 and 2026, with a rebound of 20% expected in 2027 [1] Group 2: Market Challenges - The company initially expected a sales growth of 20% to 30% in Q4 and during the Double 11 shopping festival, but failed to meet these targets due to industry headwinds [1] - Intense price competition for similar products and declining returns on investment from live-streaming sales have led the company to prioritize price stability and profitability, resulting in a sales decline and weakened operating leverage [1] Group 3: Future Strategies - Morgan Stanley expects the company to take various actions to drive sales recovery, including increasing marketing investments to counteract previous controversies and rebuild brand momentum [1] - The company is expected to reduce reliance on live-streaming sales and promotional events like Double 11 and 618 [1] - A new injectable beauty product is set to launch in 2026, with initial contributions expected to be modest, indicating that the company's past R&D efforts are still in the early stages of commercialization [1]