CITIC Securities stated in a research report that GIANT BIOGENE (02367) faced sales pressure during the Double 11 shopping festival due to industry headwinds and operational decisions, prompting a downward revision of its 2025 revenue and profit forecasts. However, the company retains solid brand assets and demonstrates structural strengths in operations.
Looking ahead, the firm has clear short- and long-term strategies. Its brand "Kefumei" has set a revenue target of RMB 10 billion with a detailed roadmap covering product development, operations, and channels. Meanwhile, "Kerlijin" is undergoing a brand revamp alongside new product launches, with potential to become the next OTC blockbuster brand.
CITIC adjusted its 2025 revenue and net profit forecasts to RMB 5.49 billion and RMB 1.93 billion, respectively, while revising adjusted net profit attributable to shareholders to RMB 1.98 billion. Based on a 20x 2026 P/E multiple, the target price is set at HK$44, maintaining a "Buy" rating.
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