CICC has released a research report maintaining an "Outperform" rating on GIANT BIOGENE (02367) with a target price of HK$56, which corresponds to 25x and 23x P/E for 2026-2027 and implies 55% upside potential. Looking ahead to the medium and long term, the firm believes the company's R&D capabilities, brand recognition, and team cohesion remain solid. As the cosmetics business recovers and the medical aesthetics segment contributes incremental growth, CICC suggests monitoring opportunities for investment. Profit forecasts and valuations are maintained for 2025-2026, with a newly introduced 2027 net profit forecast of RMB 2.4 billion. The current share price corresponds to 16x and 14x P/E for 2026-2027.
A recent development is that GIANT BIOGENE announced on January 15 that its Class III medical device, "Recombinant Type I α1 Collagen and Sodium Hyaluronate Complex Solution," has received approval. This product is the world's first recombinant collagen and sodium hyaluronate complex solution implant approved for improving cheek smoothness, having passed a joint review by medical device and pharmaceutical regulatory authorities. CICC is optimistic that this approval will further expand the company's medical aesthetics product portfolio, demonstrating its leading technological R&D capabilities.
The approval marks the world's first recombinant collagen and sodium hyaluronate complex solution for improving cheek smoothness, representing the company's second medical aesthetics license. According to the company announcement, the approved indication is "for intradermal injection to improve cheek smoothness." The company expects to steadily advance the product's market launch and promotion, leveraging a diverse product portfolio, comprehensive channel network, and refined brand operations to provide differentiated solutions and continuously strengthen its leading market position in the health and beauty sectors.
The company's pipeline of future medical aesthetics products remains robust, offering broad growth potential for multiple products. Its cross-linked neck wrinkle product has already obtained national priority review status, and the cross-linked nasolabial fold product is also progressing smoothly. CICC believes the approval of the first two medical aesthetics products has fully validated the company's technological leadership and safety profile. Furthermore, its channel resources and operational experience are highly reusable, and the successful launch of subsequent pipeline products is expected to further broaden the second growth curve of its medical aesthetics business.
The company has a clear strategy for its cosmetics product matrix and channel expansion, with an optimistic outlook for subsequent operational improvements. On the product front, it has a rich pipeline of new products, including multiple new items planned for the Collagen Repair, Focus, and Order series under the Currect brand. An upgrade for the Curlogen brand and new product launches are also scheduled for 2026. Regarding channels and marketing, an early 2026 collaboration with top livestreamer Li Jiaqi for a New Year gift box signifies a further recovery in cooperation with key influencers. The company also plans to continuously strengthen its online influencer matrix and self-operated team building while further expanding its offline coverage in aesthetic clinics, OTC, CS/KA channels, and its own store network.
Potential risks include intensifying industry competition and product registration progress falling short of expectations.
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