HK Stock Market Move | GIANT BIOGENE (02367) continues to fall by nearly 3%, with a sharp decline of over 15% yesterday. Citigroup attributes this to its weak performance at the start of the Double 11 sales event.

GIANT BIOGENE (02367) opened high and fell low today, with a decrease of nearly 3% in the afternoon, following a drop of over 15% yesterday. The stock price hit a new low of over a year at 40.6 Hong Kong dollars during trading today. As of the time of writing, it has fallen by 2.92% to 40.6 Hong Kong dollars, with a trading volume of 6.78 billion Hong Kong dollars. On the news front, on the evening of October 15, Li Jiaqi's live broadcast room started pre-sales. Citibank research report pointed out that after meeting with the CFO of GIANT BIOGENE, it was believed that the market's reaction to the decline in pre-sales performance of GIANT BIOGENE on the first day of Double 11 when Li Jiaqi, a mainland internet celebrity, did live streaming was excessive. At that time, GIANT BIOGENE's flagship products had less attractive prices compared to other brands due to a more rigorous promotional strategy. Citibank stated that although Li Jiaqi's live broadcast sales trend is an important indicator of Double 11 performance, its contribution sharply decreases with the growth of other KOLs and in-house live streaming sales. Citibank predicts that GIANT BIOGENE's performance in the third quarter of this year and the first two weeks of October has been relatively weak due to fewer KOL live streams. It is expected that revenue will increase by 16% year-on-year in the second half of this year, with an expected decrease of 10% on Tmall, an increase of 25% on Douyin, a growth of 100% on JD.com, and a 10% growth offline. Citibank also expects GIANT BIOGENE's revenue in the 2026 fiscal year to continue high growth from a low base, as there are no negative customer feedback. Given the low base this year, Citibank expects sales in the 2026 fiscal year for GIANT BIOGENE to resume growth, with valuation still attractive. The stock is maintained a "buy" rating, with profit forecasts lowered and a target price lowered from 69.4 Hong Kong dollars to 55.4 Hong Kong dollars based on a 20 times PE ratio for the 2026 fiscal year.