Giant Biogene (02367): Performance Resilience and Valuation Recovery Potential of the Medical Aesthetics Collagen Leader

Giant Biogene (02367) is a leading enterprise in China’s recombinant collagen field [0]. In H1 2025, it achieved revenue of RMB 3.113 billion (YoY +22.5%) and net profit of RMB 1.182 billion (YoY +20.6%). Although the growth rate slowed compared to the same period last year, it still showed strong performance resilience [2]. The company’s core brand Kefumei contributes over 80% of revenue, with online direct sales accounting for 71%, and the channel structure is stable [0].

The Kefumei ingredient controversy in May caused the stock price to drop by nearly 36% cumulatively, but the company responded effectively through clarification statements and measures such as banning relevant bloggers, and dealers reported that sales are gradually recovering [2][3]. The current stock price is about HK$35.66, close to the 52-week low (range of HK$35.54-87.10), while the average analyst target price reaches HK$70, with a 96% valuation recovery space [1][0].

1. Industry Recovery Driver
   : The medical aesthetics industry showed a bottoming-out and recovery trend in 2025. Collagen, as a high-growth segment, has received key market attention, providing a favorable industry environment for the company [0].
2. Institutional Confidence Boost
   : Morgan Stanley released a research report giving a 99% growth expectation, significantly increasing market attention and reflecting institutional recognition of the company’s long-term value [4].
3. High Financial Health
   : The company’s profit margin remains at a high level of 37%, return on equity reaches 29.86%, and cash reserves are sufficient (RMB 886 million), providing solid support for future development [0].

• Intensified industry competition: The collagen track attracts more participants, which may squeeze market share [0]
• Regulatory policy changes: Stricter regulation in the medical aesthetics industry may affect product approval and sales [0]
• Brand reputation risk: If product disputes occur again, it may cause short-term impact on the stock price [2]

• Valuation recovery: The current stock price is close to the 52-week low, and there is significant upside potential in analysts’ target prices [1][4]
• Industry growth: The recovery of the medical aesthetics industry and the high prosperity of the collagen segment are expected to drive sustained performance growth [0]
• Channel expansion: Online direct sales already account for a high proportion; potential in offline channels can be further explored in the future [0]

As a leader in recombinant collagen, Giant Biogene has shown strong recovery ability after the ingredient controversy. The company’s financial fundamentals are stable, and industry recovery and institutional optimism provide opportunities for valuation recovery. Investors need to pay attention to industry competition and regulatory risks, but the current low stock price and analysts’ optimistic expectations provide potential layout opportunities for long-term investors.