Giant Biogene (02367.HK) Share Repurchase Plan and Market Divergence Analysis

Giant Biogene (02367.HK) is a leading recombinant collagen company listed on the Hong Kong Stock Exchange, with businesses covering skincare, medical aesthetics, and other areas [0]. The core catalyst for its recent rise as a market hotspot is the large-scale share repurchase plan approved by its shareholders’ meeting—intending to repurchase up to approximately 104 million shares (10% of issued shares) [3]. CICC Research pointed out that the repurchase plan demonstrates management’s confidence in the company’s long-term value, emphasizing its solid R&D capabilities and brand awareness, and the second growth curve (medical aesthetics business) is expected to drive operational improvement, maintaining an “Outperform” rating with a target price of HK$56 [1]; CMB International also maintains a “Buy” rating with a target price of HK$58.35 [0]. However, CMS International downgraded its rating from “Overweight” to “Neutral” and sharply cut the target price to HK$34.5 due to the double-digit sales decline of the core brand “Kefumei” during Double 11 and a public relations crisis [4]. This mixed bullish and bearish sentiment has intensified short-term stock volatility and market attention.

From the perspective of price and trading volume, the current trading range of the stock (HK$35.44-HK$36.08, December 28-29, 2025) is close to its 52-week low of HK$34.04 [2], down more than 58% from its 52-week high of HK$87.10, and is in a long-term low range. The recent trading volume was 2,698,200 shares [2], a significant increase compared to the long-term slump period, reflecting active trading driven by the repurchase news.

1. Game Between Repurchase Plan and Operational Challenges
   : Management’s confidence conveyed through the large-scale repurchase contrasts sharply with operational pressures such as the core brand’s sales decline and public relations crisis, leading to divided market sentiment.
2. High Valuation Uncertainty
   : There is a significant gap in institutional target prices (HK$34.5-HK$58.35), reflecting large differences in market judgments on the company’s future growth path (e.g., medical aesthetics business expansion, core brand recovery).
3. Signal Role of Key Price Levels
   : The current stock price is close to the 52-week low of HK$34.04 [2], which has become an important short-term support level. If it breaks below this level, further selling may be triggered; conversely, if it breaks through the recent resistance level of HK$36.08, it may indicate a shift in market sentiment to optimism.

• Risks
  :
  • Short-term operational risks: The follow-up impact of the core brand’s sales decline and public relations crisis remains to be seen [4].
  • Valuation divergence risk: The large gap in institutional target prices means that market consensus on the company’s value has not yet formed.
  • Liquidity risk: Although trading volume has recently increased, long-term liquidity still needs attention [0].
• Opportunities
  :
  • Management confidence signal: The large-scale repurchase plan shows confidence in the company’s long-term prospects [3].
  • Second growth curve potential: The development of the medical aesthetics business is expected to become a new growth engine [1].
  • Low-level layout opportunity: The current stock price is at a long-term low; if operational conditions improve, there may be room for valuation repair [0].

Giant Biogene (02367.HK) has become a hot Hong Kong stock due to its 10% share repurchase plan, with significantly divided analyst ratings. The current stock price is close to its 52-week low, and trading activity has picked up due to the repurchase news. The company faces short-term operational challenges such as core brand sales decline and public relations crisis, but management conveys long-term confidence through repurchases, and the expansion of the medical aesthetics business may be a future growth driver. Investors need to pay attention to the support level of HK$34.04 and the resistance level of HK$36.08, and evaluate subsequent trends based on the company’s operational progress (e.g., core brand recovery, medical aesthetics business performance).