Zhao Yin International: Maintains a "buy" rating on GIANT BIOGENE (02367) with a target price raised to HK$69.19.

Guosen Securities International has released a research report stating that the target price of GIANT BIOGENE (02367) has been raised by 4.6%, from 66.15 Hong Kong dollars to 69.19 Hong Kong dollars, maintaining a "buy" rating. Considering the company's upward revision of 2024 revenue growth guidance, which is better than the bank's previous expectations, the company's expected revenue compound annual growth rate for 2023-2025 has been raised to 43.5%. The report stated that the online GMV growth of Kefumei and Kelijin in 2024 is impressive. GIANT BIOGENE raised its 2024 performance guidance, expecting revenue growth of over 50% and net profit growth of around 40%. The bank remains optimistic about the rapid growth of the company's skincare product line in 2025 and expects the first recombinant collagen injection product to be approved in the first quarter of this year. According to data cited by the bank, Kefumei's GMV on the three major online platforms in 2024 totaled 4.75 billion yuan, an annual increase of 53%, with GMV on Douyin increasing by 106% year-on-year, maintaining a strong momentum, and GMV on Maotao and Jingdong increasing by 28% and 56% year-on-year, respectively. Kelijin's total GMV on the three major online platforms reached 660 million yuan, with a high-speed year-on-year growth of 103%. The main drivers of GMV growth for Kelijin in 2024 were facial essence, lotions/creams, and eye care categories, benefiting mainly from the outstanding performance of core products such as Pong Pong Once Throwing, new product Collagen Cream, and Collagen Eye Cream. In December 2024, the company's "Recombinant Collagen Filler for Injection for Moderate to Severe Neck Wrinkles" received priority approval. In addition, the registration of an injection product using recombinant collagen for filling eye wrinkles is progressing as planned and is expected to be approved in the first quarter of this year. The bank is optimistic about GIANT BIOGENE's technological advantage in the recombinant collagen field and believes that injection products will become an important long-term growth engine for the company, backed by the company's extensive distribution network and strong brand awareness.