CICC: Maintains "outperform" rating on GIANT BIOGENE (02367) as Second Recombinant Collagen Implant Approved

CICC released a research report stating that it maintains a "outperform" rating on GIANT BIOGENE (02367) with a target price of HKD 56, corresponding to a P/E ratio of 25/23x for 26-27 years, representing a 55% upside potential. Looking at the medium to long term outlook, the bank believes that the company's research and development capabilities, brand awareness, and team cohesion are still solid. With the recovery of the cosmetics market and increasing contributions from medical beauty, the bank recommends paying attention to investment opportunities. Profit forecasts and valuations maintain a net profit for 25-26 years and introduce a net profit forecast of 2.4 billion yuan for 27 years. The current stock price corresponds to a P/E ratio of 16/14x for 26-27 years. Key points from CICC: Recent Events On January 15, GIANT BIOGENE announced that its three types of medical devices, "Recombinant Type I 1 Subtype Collagen and Sodium Hyaluronate Compound Solution," have been approved. This product is the world's first implant product for improving cheek smoothness with recombinant collagen and hyaluronic acid compound solution. The bank is optimistic about the approval of this product further expanding the medical beauty product matrix, confirming the company's leading technological research and development capabilities. The world's first recombinant collagen and hyaluronic acid compound solution for improving cheek smoothness has been approved, and the second medical beauty license has landed. According to the company's announcement, the three types of medical devices under the company, "Recombinant Type I 1 Subtype Collagen and Sodium Hyaluronate Compound Solution," have been approved, with the indication for "injection into the dermis to improve cheek smoothness." The company expects to steadily promote the listing and market launch of this product, providing differentiated solutions through a diverse product portfolio, comprehensive channel network, and refined brand operation, continuously strengthening its leading market position in the health and beauty field. Rich reserves in the medical beauty pipeline, broad growth space for multiple products The company's subsequent pipeline reserves are still rich: the cross-linked neck wrinkle product has obtained national priority evaluation qualifications; the cross-linked nasolabial fold product is also progressing smoothly. The bank believes that the approval of the first two medical beauty products fully verified the company's technological leadership and safety, channel resources, and operational experience. The landing of the subsequent pipeline is expected to further widen the second growth curve of the medical beauty business. Clear makeup product matrix and channel expansion plan, optimistic about the subsequent improvement trend in operations 1) Product end: Rich reserve of new products, including several new products in the Repair Collagen, Focus, and Order series; the Kelijin brand upgrade and new product launches are also planned to be implemented in 26 years. 2) Channel and marketing end: In early 26, a collaboration with Li Jiaqi was launched to release the Lucky Stick New Year's gift box, marking a close relationship with top anchors; at the same time, the company plans to continuously strengthen online influencers and self-operating teams, while further expanding offline channels such as OTC and CS/KA. Risk Warning Continuous intensification of industry competition; product registration progress is slower than expected.