HK Stock Market Move | GIANT BIOGENE (02367) fell by over 4% as Bank of America said the company's sales during Double Eleven period were under pressure. Management has lowered its performance guidance.

GIANT BIOGENE (02367) surged over 12% yesterday in response to the news of a buyback, but fell more than 4% today. As of the time of writing, the stock was down 3.38% to HK$38.36 with a trading volume of HK$428 million. On the news front, GIANT BIOGENE announced at noon that it plans to exercise its share buyback authorization to repurchase company shares. According to the buyback authorization, the company is allowed to repurchase up to 1.036 billion shares, which is 10% of the total issued shares (excluding treasury shares). Bank of America Securities released a research report stating that GIANT BIOGENE's sales were under pressure during the Double Eleven period. According to management data, sales of the KeFuMei brand on Tmall and Douyin decreased by 20% and 50% respectively year-on-year. In contrast, KeLiJin achieved positive growth during the period. The report mentioned that management has lowered its performance guidance for the year, expecting revenue to remain flat or slightly decrease year-on-year, and revising down the net profit forecast to a mid to high single-digit decline year-on-year.