Giant Biogene Shares Surge Over 6% in Early Trading, CICC Reiterates Outperform Rating

Deep News06-24

Shares of Giant Biogene (02367) rose more than 6% in early trading. At the time of writing, the stock was up 6.01% to HK$26.46, with a turnover of HK$102 million.

Recently, Giant Biogene announced that its wholly-owned subsidiary, Shaanxi Giant Biogene Technology Co., Ltd., received a Medical Device Registration Certificate from China's National Medical Products Administration for its cross-linked recombinant collagen implant. This product utilizes the full-length sequence of human type III mature collagen, comprising 1,068 amino acids, which fully retains the natural functional domains of collagen. It employs a physical cross-linking process that eliminates the risk of chemical cross-linking agent residues, forming a stable three-dimensional gel network. It is intended for intradermal injection into the neck to correct moderate to severe horizontal neck lines.

CICC released a research report maintaining its "outperform the industry" rating on Giant Biogene (02367). Due to pressure on the overall valuation of the Hong Kong consumer sector, the target price was lowered by 18% to HK$40. The firm maintained its profit forecasts for Giant Biogene for 2026 and 2027. The current share price implies forward price-to-earnings ratios of 12 and 11 times for 2026 and 2027, respectively. The report noted that Giant Biogene's Class III medical device, the "cross-linked recombinant collagen filler," has received approval. This product is the world's first cross-linked recombinant full-length type III collagen filler approved for neck wrinkles, highlighting its differentiated advantages. Furthermore, the company's first approved medical aesthetic product was officially launched on June 9, and its cosmetics business is showing signs of accelerating growth. The report is optimistic about the improving fundamentals of the company and suggests paying attention to the opportunity for bottom-fishing investments.

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