HK Stock Market Move | GIANT BIOGENE (02367) dropped nearly 4% as sales performance of Celufine is under pressure. Management has revised down the annual performance guidance for this year.

GIANT BIOGENE (02367) fell nearly 4%, as of the time of writing, it fell by 3.86% to HK$36.82, with a turnover of HK$241 million. On the news side, CMB International released a research report stating that due to short-term pressure on Comfy's performance, the bank has lowered the company's revenue growth forecast for 2025/26 to -3.5% and 13.6%. The report points out that during the "Double 11" period, the company's sales were under pressure mainly due to lower-than-expected performance of Daba. On the one hand, the company actively adjusted its channel strategy, and on the other hand, it also reflected the overall competitive pressure in the industry. However, the management has maintained strategic focus in the face of industry changes, maintained pricing and consumer experience, increased the proportion of self-broadcast channels, and laid the foundation for long-term growth. Bank of America Securities previously stated that GIANT BIOGENE's sales were under pressure during the "Double 11" period. According to management data, Comfy brand sales on Tmall and Douyin decreased by 20% and 50% respectively year-on-year. In comparison, Collgene brand achieved positive growth during the period. The report mentioned that management has lowered this year's performance guidance, expecting revenue to remain flat or slightly decrease year-on-year, and lowering net profit forecast to a high single-digit percentage decline year-on-year.