Shares of Giant Biogene (02367) experienced a notable increase during the trading session, rising over 6%. At the time of writing, the stock was up 4.13%, trading at HK$26.22 with a turnover of HK$1.6 billion.
Catalysts for the Movement
The company's medical aesthetics portfolio has recently expanded. In June, Giant Biogene officially launched its 753 Collagen Injection, the first recombinant type I collagen facial injectable in China, marking a differentiated entry into a market predominantly focused on type III collagen products. That same month, the company's self-developed cross-linked recombinant full-sequence type III collagen filler received approval from the National Medical Products Administration, becoming the world's first product of its kind indicated for improving neck lines.
Analyst Commentary
A research report from Huachuang Securities noted that Giant Biogene's medical aesthetics matrix is gradually taking shape, and the inflection point for clearing regulatory and public opinion risks related to its cosmetics business is beginning to appear. While medical aesthetics is expected to remain in an early-stage market education phase this year and next, with a limited contribution to overall earnings, its long-term potential is promising. Considering the valuation pressure from subdued consumer sentiment in the Hong Kong market, the report values the company's cosmetics business at 15 times projected 2026 earnings, implying a market capitalization of RMB 290 billion. Adding a potential RMB 60 billion in market value from the medical aesthetics segment, the combined target market capitalization is set at RMB 350 billion.
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