Citigroup: Maintain "Buy" rating on GIANT BIOGENE (02367) with a target price of HK$78.1.

Citigroup released a research report stating that due to a significant discount, the stock price of GIANT BIOGENE (02367) is expected to be under pressure in the short term. However, the profit prospects of GIANT BIOGENE remain robust, so the "buy" rating on the stock is maintained with a target price of HK$78.1. On Thursday morning (17th), GIANT BIOGENE announced the placement of up to 35 million shares, representing an enlarged share capital of 3.27%. The placement price is HK$66.65, with a discount of 9.5% compared to the closing price on the previous trading day (16th). The total amount raised is HK$2.33 billion, with a net amount of HK$2.294 billion, which will be used for the development of core business and ecosystem layout, including brand promotion, marketing, category expansion, overseas business, research and development investments, as well as additional working capital and general corporate purposes. GIANT BIOGENE stated that the funds raised will mainly be used for the development of overseas business, as most of its cash is held within China.