Core Viewpoint - The approval of the first injectable recombinant collagen type I medical device by Juzi Biotech marks a significant breakthrough in the aesthetic medicine sector, indicating the start of a second growth curve for the company in this field [1][4]. Product Approval - On October 23, 2025, Juzi Biotech announced that its self-developed "Recombinant Type I α1 Collagen Lyophilized Fiber" received the Class III medical device registration certificate from the National Medical Products Administration (NMPA), with registration number 国械注准20253132049 [1][2]. - This product is the first approved drug-device combination in Juzi Biotech's Class III medical device pipeline, extending its business from functional skincare and Class II medical devices to the high-barrier Class III aesthetic injection devices [1][2]. Product Specifications and Efficacy - The product is a white or off-white sponge-like solid composed of recombinant Type I α1 collagen, with a total of 753 amino acids [2]. - It is indicated for facial dermal tissue filling to correct dynamic wrinkles, including forehead lines, glabellar lines, and crow's feet, showing efficacy rates of 94.7% for forehead lines and 97.2% for crow's feet in clinical trials [2]. Market Potential - The domestic market currently has 12 approved Class III collagen medical devices, with only four related to recombinant collagen, making Juzi's product the first recombinant Type I collagen Class III medical device approved [2][3]. - The collagen injection market is projected to reach approximately 9.8 billion by 2025, indicating significant growth potential for Juzi's recombinant Type I collagen, which is not in direct competition with existing products [3]. Future Pipeline and Growth Strategy - Juzi Biotech has additional products in the pipeline, including a "Recombinant Collagen Implant" that is currently under review, which may expedite approval following the recent success [4]. - Despite short-term stock price pressures due to initial sales fluctuations during the Double 11 shopping festival, the company is expected to gain momentum in the latter half of the event [4][6]. Sales Performance and Brand Strategy - In Q3, Juzi Biotech achieved a GMV of approximately 726 million, with significant growth rates across platforms like Tmall and JD, indicating a recovery in brand performance [4]. - The company has engaged in strategic partnerships with influencers to enhance brand visibility and sales during the Double 11 event, ranking 16th in Tmall's beauty category during the promotional period [4]. Management Confidence - The company's major shareholder has been actively increasing its stake, purchasing approximately 4.23 million shares for about 200 million HKD, which signals strong confidence in the company's long-term prospects [6].

Core Viewpoint - The approval of the recombinant type I α1 collagen freeze-dried fiber product by Juzi Bio marks a significant milestone as it is the first recombinant type I natural sequence collagen facial injection product in China, with potential for over 1 billion in sales in the long term [1] Group 1: Product Approval and Market Potential - Juzi Bio's recombinant type I collagen product is primarily aimed at facial dermal tissue filling to correct dynamic wrinkles, including forehead and crow's feet [1] - The product's long-term sales potential is estimated to exceed 1 billion, with a notable profit margin, referencing Jinbo Biotech's net profit margin of 45.66% in 1H25 [1] - The current market for injectable recombinant collagen is limited, with Jinbo Biotech focusing on recombinant type III humanized collagen products, which have shown significant revenue growth [1] Group 2: Brand Performance and Sales Growth - The Q3 performance of the 可复美 (Kefumei) brand shows a recovery in online sales, with GMV reaching 615 million and a year-on-year increase of 20% [2] - The brand's promotional activities, including collaborations with influencers, have contributed to restoring brand visibility and sales [2] - The company has expanded its international presence, with Kefumei products entering 13 Watsons stores in Singapore [2] Group 3: Financial Forecast and Valuation - The company maintains its net profit forecasts for 2025-2027 at 26.00 billion, 32.03 billion, and 38.12 billion, respectively, with corresponding EPS of 2.53, 3.11, and 3.71 [2] - The target price is set at 85.0 HKD, based on a 31x PE for 2025, reflecting the company's leading position in the medical aesthetics sector and resilient sales performance [2]

Core Viewpoint - 招银国际 maintains a "Buy" rating for 巨子生物 (02367) with a target price of HKD 58.35, despite a weak online sales performance for 可复美 during the first phase of Double Eleven sales [1] Group 1: Financial Performance - 可复美's online revenue is estimated to decline by 10% year-on-year in 2H25, leading to an overall online revenue growth rate of approximately 5% for the year [1] - 可丽金 is expected to achieve a high growth rate of about 40% in online revenue for the year [1] - The company's revenue growth forecast for 2025 is expected to slow down to 12% [1] - The CAGR for 可复美's revenue growth from 2025E to 2027E has been revised down from 26% to 14.5% due to short-term pressures on online sales [1] Group 2: Product Development - 巨子生物's first injectable recombinant collagen product, recombinant type I α1 collagen lyophilized fiber, has been approved for use in facial dermal tissue filling to correct dynamic wrinkles, including frown lines, forehead lines, and crow's feet [1] - The approval marks the completion of the company's product matrix layout for aesthetic injections, post-surgical recovery (dressing), and functional skincare [1] - The company is progressing with the commercialization of injectable products [1] Group 3: Upcoming Products - The company has two additional injectable collagen products in the approval stage: 1. Injectable recombinant collagen filler for moderate to severe neck wrinkles, prioritized for medical device approval by December 2024 [2] 2. Recombinant collagen implant, submitted for registration as a drug-device combination by August 2025, currently under review [2] - The approval of these products will further enrich the company's aesthetic product matrix, covering a range of anti-aging scenarios from forehead to neck and improving skin texture [2]

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]

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].

Core Viewpoint - The development paths of medical beauty companies are diverging amid industry adjustments, with three leading companies—Hua Xi Bio, Juzi Bio, and Fulejia—reporting significantly different half-year results, reflecting a shift from "traffic dividends" to "technical barriers" in the industry [1] Group 1: Company Performance - Juzi Bio led with a revenue of 31.13 billion yuan and a year-on-year growth rate of 22.5% [4] - Hua Xi Bio reported a revenue of 22.61 billion yuan, a decline of 19.57% year-on-year, marking its worst interim report since listing [2][3] - Fulejia's revenue was 8.63 billion yuan, down 8.15% year-on-year, with a net profit drop of 32.54% [3][4] Group 2: Strategic Adjustments - Hua Xi Bio attributed its revenue decline to a drop in income from its skin science innovation transformation business, which saw a 33.97% decrease to 9.12 billion yuan [5][6] - Fulejia's revenue drop was linked to offline channel optimization, which increased sales expenses by 39.56% to 4.2 billion yuan [5][9] - Juzi Bio's growth was driven by the sales increase of professional skin care products, contributing 99.7% of its revenue [10][11] Group 3: Market Dynamics - The medical beauty industry is experiencing a shift, with the competition now focusing on research and development capabilities, patent layouts, and compliance [17] - The market for recombinant collagen products is projected to grow at a compound annual growth rate of 44.93%, reaching 58.57 billion yuan by 2025 [15] - Hua Xi Bio is expanding into recombinant collagen while maintaining its position in hyaluronic acid, indicating a dual strategy to adapt to market changes [15][16]