CICC: Reiterates 'Outperform Industry' Rating for Giant Biogene (02367) as Second Recombinant Collagen Implant Approved

According to Zhitong Finance APP, CICC issued a research report stating that it maintains Giant Biogene (02367) $GIANT BIOGENE (02367.HK)$ with an 'Outperform Industry' rating and a target price of HKD 56, corresponding to 25/23x P/E for 2026-2027, with a potential upside of 55%. Looking medium to long-term, the firm believes the company's R&D capabilities, brand awareness, and team cohesion remain solid. As the cosmetics business recovers and medical aesthetics contribute incremental growth, investors are advised to watch for opportunities to build positions. The earnings forecast and valuation maintain net profit projections for 2025-2026 and introduce a net profit forecast of RMB 2.4 billion for 2027. The current share price corresponds to 16/14x P/E for 2026-2027.

CICC’s key views are as follows:

Recent Events

Giant Biogene announced on January 15th that its 'Recombinant Type I α1 Subtype Collagen and Sodium Hyaluronate Composite Solution,' classified as a Class III medical device, has been approved. This product is the world’s first recombinant collagen and sodium hyaluronate composite solution implant designed to improve cheek smoothness, and it received formal approval through joint review by both device and drug regulatory authorities. The firm views the approval of this product as further expanding the medical aesthetics portfolio, underscoring the company’s leading technological R&D capabilities.

The world's first recombinant collagen and sodium hyaluronate composite solution for improving cheek smoothness has been approved, marking the issuance of the second medical aesthetics license.

According to the company announcement, the company’s 'Recombinant Type I α1 Subtype Collagen and Sodium Hyaluronate Composite Solution,' a Class III medical device, has been approved for use in 'dermal layer injections to improve cheek smoothness.' The company expects to steadily promote the product’s market launch and distribution. Through a diversified product portfolio, comprehensive channel network, and meticulous brand operations, it aims to provide differentiated solutions while continuously strengthening its leading position in the health and beauty sectors.

The company has a rich pipeline of subsequent medical aesthetics products with broad growth potential across multiple products.

The company’s pipeline remains robust: its cross-linked neck wrinkle product has received priority review status from the state, and its cross-linked nasolabial fold product is also proceeding smoothly. CICC believes that the approval of the first two medical aesthetic products has fully demonstrated the company’s technological leadership and safety. Additionally, its channel resources and operational experience are highly reusable, meaning the rollout of subsequent pipelines is expected to further broaden the second growth curve of its medical aesthetics business.

The planning for the cosmetics product matrix and channel expansion is clear, and the outlook for subsequent operational improvements is optimistic.

1) Product side: A rich pipeline of new products is in place, including plans to launch several new products under the Focus, Repair, and Order series from the 'Could Be Beautiful' line; the 'Collegen' brand upgrade and new product launches are also scheduled for 2026.

2) Channel and marketing side: In early 2026, the company collaborated with Li Jiaqi to launch a lucky stick New Year gift box, indicating a further strengthening of cooperation with top-tier influencers. Meanwhile, the company plans to enhance its influencer network and self-operated teams online while expanding offline channels such as theaters, OTC, CS/KA, and increasing its presence through proprietary store layouts.

Risk Warning

Intensifying industry competition; slower-than-expected progress in product registration.

25K Views