BofA Securities: Lower GIANT BIOGENE's (02367) target price to HKD 55.5, reiterating "buy" rating.

Bank of America Securities released a research report stating that it has revised down revenue forecasts for GIANT BIOGENE (02367) for the years 2025 to 2027 by 21%, 24%, and 25% respectively, and has also revised down net profit forecasts by 21%, 24%, and 24% respectively. The target price has been lowered from HK$68.3 to HK$55.5, but the "buy" rating has been reiterated, as they believe that the newly approved injectable medical beauty products are expected to become the company's growth engine next year. During the Double Eleven period, sales of GIANT BIOGENE were under pressure, with data from management showing that sales of the Comfy brand on Tmall and Douyin decreased by 20% and 50% respectively year-on-year. In contrast, the Collgene brand achieved positive growth during the period. The report mentioned that the management has revised down this year's performance guidance, expecting revenue to be flat or slightly lower year-on-year, and adjusted net profit forecasts to a mid-to-high single-digit decline.