Understanding the Market | GIANT BIOGENE falls over 6% as collagen restructuring faces controversy; the company's 618 promotional campaign starts off well

According to Zhitong Finance APP, GIANT BIOGENE (02367) fell over 6%, down 6.15% to HKD 76.35 as of the time of writing, with a transaction volume of HKD 908 million.

On the news front, recently, the official WeChat account of Huaxi Bio published an article titled "Concepts Always Reappear, Technology Always Moves Forward," criticizing several brokerages for supporting the restructuring of collagen and promoting the "obsolescence theory" of sodium hyaluronate. Huaxi Bio pointed out that in order to create greater expectations than the sodium hyaluronate industry, a large number of so-called "comparative studies" directly targeting China's sodium hyaluronate industry appeared in research reports surrounding a certain collagen restructuring company. Everyone can trace where these widely disseminated "research reports" come from, which institution they are associated with, and when they were published. Their names and misleading statements are "permanently recorded in the world of the internet."

Public information shows that GIANT BIOGENE is a leader in domestic collagen professional skin care products, expanding eight consumer brands based on research and development. Citigroup recently pointed out that GIANT BIOGENE's "618" promotion had a good start on the Tmall platform, with a significant rise in rankings. They raised their earnings forecast for the company from 5% to 18% for each year from this year to 2027, reflecting an upward revision of revenue forecasts. The target price was raised from the previous HKD 78.1 to HKD 93.7, equivalent to a projected price-to-earnings ratio increase from 28 times to 34 times this year, reflecting a better growth outlook and aligning with the valuation multiples of peers in mainland China, maintaining a "buy" rating for GIANT BIOGENE