Analyst Jill Wu of CMB International Securities maintained a Buy rating on Giant Biogene Holding Co. Ltd. (2367 – Research Report), with a price target of HK$79.96.
Jill Wu has given her Buy rating due to a combination of factors including Giant Biogene’s impressive financial performance in 2024, where the company reported a 57% year-over-year increase in revenue, reaching RMB5.5 billion. The skincare and medical dressing segments showed significant growth, contributing to the overall revenue increase. Despite a slight decrease in gross profit margin and net profit margin due to rising online marketing costs, the company’s online revenue surged by 70% year-over-year, indicating strong digital sales momentum.
Moreover, the company’s successful product expansion, particularly in its Comfy and Collgene brands, has been a critical driver of growth. Comfy’s revenue grew by 62.9% year-over-year, while Collgene saw a 36.3% increase, with online sales showing remarkable acceleration. Although there were delays in the approval of some injectable products, the company’s strategic preparations for commercialization and its robust distribution network position it well for future growth in the medical aesthetics market. These factors, combined with the anticipation of new product launches, underpin the positive outlook and Buy rating.
According to TipRanks, Wu is a 4-star analyst with an average return of 10.7% and a 53.54% success rate. Wu covers the Healthcare sector, focusing on stocks such as BeiGene, Innovent Biologics, and Wuxi Biologics (Cayman).
In another report released on March 27, Goldman Sachs also maintained a Buy rating on the stock with a HK$72.00 price target.