Citi: Raises the target price for GIANT BIOGENE (02367) to HKD 38.4, with high visibility for recovery.

Citi released a research report stating that GIANT BIOGENE (02367) raised its target price from HKD 37 to HKD 38.4. The rating is Buy. The company reported a net profit of 940 million RMB in the first half of the year, a 21% year-on-year decline, which is 4% higher than the banks estimate, primarily due to a lower effective tax rate and higher interest income, partially offset by higher sales and distribution expenses/selling expenses. Revenue fell by 6%, in line with the bank's expectations. The report indicated that GIANT BIOGENEs management maintained its full-year guidance, expecting revenue growth of 10% and flat net profit, meaning that revenue in the second half of 2026 needs to grow by over 30% and net profit by over 40%. Management appears very confident about achieving these targets. The bank regards GIANT BIOGENE as its preferred buy in the Chinese cosmetics sector due to high visibility of recovery.