HK Stock Market Move | GIANT BIOGENE (02367) fell more than 4% again, which could recover by mei during the Double 11 pre-sale. Citigroup said the market's reaction was excessive.

GIANT BIOGENE (02367) fell by more than 4%, halving from its year-high of HK$85.79. As of press time, it has dropped by 4.01% to HK$39.22, with a turnover of HK$7.45 billion. On the news front, the curtain has officially opened for this year's "Double 11" sales event, but GIANT BIOGENE's subsidiary KFUMEI performed poorly in pre-sales. According to a Citigroup research report, the performance of GIANT BIOGENE's flagship products declined in the pre-sale event on Li Jiaqi's live broadcast on October 15. Citigroup stated that due to the more rigorous promotion strategy adopted for this product, its price attractiveness is not as good as other brands. However, the bank also stated that it believes the market's reaction to GIANT BIOGENE's decline in pre-sales performance on the first day of Double 11 under Li Jiaqi's live stream was excessive. Citigroup mentioned that while Li Jiaqi's live broadcasts are an important indicator of Double 11 performance, the contribution is sharply decreasing with the growth of other KOLs and self-owned live streams. Despite fierce competition, the bank did not see any negative feedback from the company's customers on its products or brand. Given the low base this year, Citigroup expects GIANT BIOGENE's sales to resume growth in the fiscal year 2026 and still finds its valuation attractive.