HK Stock Market Move | GIANT BIOGENE (02367) fell by over 3% in the afternoon. Institutions state that the company's investment logic has shifted from growth to strategic adjustments, lacking a clear rebound catalyst.

Giant Biogene (02367) fell more than 3% in the afternoon, dropping 2.95% to HK$33.54 as of press time, with a turnover of HK$2.46 billion. CMSC International released a research report stating that the rating for GIANT BIOGENE has been downgraded from "hold" to "neutral," with the target price lowered by 45% from HK$64 to HK$35. The report pointed out that the company is facing many challenges, including a series of reputation crises and a double-digit decline in the core brand Ke Fu Mei during the Double 11 promotion period. Although the bank believes that the company's stock price has largely digested these issues and the subsequent downward revision of sales guidance for 2025, they remain cautious about the outlook for 2026. The bank believes that the current market consensus may be overly optimistic. The bank pointed out that the investment logic for GIANT BIOGENE has shifted from growth to strategic adjustments, and they believe there is currently a lack of clear catalysts for a rebound. They recommend a wait-and-see approach until signs of stability become clearer. The bank has lowered its average revenue forecast for 2025-27 by 30% to reflect the management's latest guidance and their more cautious outlook for 2026. They have raised the sales expense ratio forecast from 36% to 38% to reflect execution challenges during the adjustment phase. The target price is based on a downward revision from a forecasted P/E ratio of 21.5 times for 2026 to 16 times.