Giant Biotech: Hong Kong Stock Popularity Driven by Buybacks and Valuation Repair

The Tushare East Money App Hong Kong Stock Popularity List recorded at 16:30:01 (UTC+8) on December 17, 2025 listed Giant Biotech as a hot pick, reflecting the resonance of multiple short-term catalysts at the market sentiment level [1]. The company’s current core indicators—such as a share price of about HK$35.1, 52-week range of HK$34.18-HK$87.10, PE of 14x, PB of 3.6x, and ROE of 31%—have been compressed to historical lows, with a significant gap remaining from the average target price of HK$60, forming expectations for valuation repair [2][4][0]. Management conducted consecutive buybacks from December 11 to 16, purchasing 400,000 shares daily at a cost of approximately HK$14 million per day. This action, combined with financial strength of HK$6.9 billion in cash and zero interest-bearing liabilities, forms a downside buffer, which is particularly critical in the sentiment-driven phase [0][10].

Market conditions still need to digest negative factors: the trust impact from the collagen stick ingredient dispute in May, the shift in performance guidance from high growth to flat growth, UBS downgrading the rating from Buy to Neutral and cutting the target price to HK$39.5, Morgan Stanley lowering the target price to HK$42 but still seeing rebound potential after short-term pressure, and CITIC Securities maintaining a Buy rating with a target price of HK$44—overall ratings show divergence [9][5][6][11]. Meanwhile, intensified competition in the recombinant collagen track (e.g., Jinbo Biotech’s layout of Class III medical device certificates) and high industry growth (CAGR of 44.93% from 2025 to 2030) create a situation where structural opportunities and challenges coexist [7][8].

1. Management’s high-frequency buybacks and sufficient cash jointly form short-term price support, partially absorbing negative sentiment shocks in the stock price and reflecting the management’s determination for valuation repair [0][10].
2. The “ingredient gate” incident and downward sales guidance mean brand trust and performance rhythm need further verification; short-term sentiment fluctuations may still amplify, especially when the risk of price wars in the track intensifies [9][7].
3. Despite current fundamental pressure, long-term track prosperity (bidirectional expansion of recombinant collagen and functional skincare demand) and continued recognition of medium-to-long-term views by institutions like CITIC provide background support for valuation repair [8][11].

• Divergent institutional ratings (UBS/Morgan Stanley downgrading target prices) highlight performance uncertainty and pressure from downward earnings forecasts [5][6].
• Competitors in the recombinant collagen track (e.g., Jinbo Biotech) rapidly seizing certificates/capacity may trigger price wars and market share erosion [7].
• Ingredient disputes and high marketing expenses require time for brand trust repair; if sales do not stabilize in the short term, sentiment fluctuations will continue [9].

• Low valuation (14x PE) and high buyback frequency make the stock price psychologically attractive; past sharp declines have partially priced in unfavorable news [0][2].
• Track growth expectations (CAGR of 44.93% from 2025 to 2030) and functional skincare market expansion provide long-term revenue support [8].
• Financial stability + HK$6.9 billion in cash + zero interest-bearing liabilities provide guarantee for both offense and defense; institutions like CITIC Securities still maintain Buy ratings, supporting medium-to-long-term logic [10][11].

• The Tushare popularity list reflects short-term热度 driven by policy and sentiment, supported by dual catalysts of low valuation and management buybacks [1][0].
• Valuation (14x PE) and cash flow after deep declines provide a buffer for the current price; continue to observe whether performance guidance and sales can confirm the bottom [2][4][10].
• Competition in the track, supply-side expansion, and brand trust recovery take time; if fundamentals do not improve significantly, sentiment fluctuations may still dominate the price volatility range [7][9].
• Medium-to-long-term opportunities still come from high-growth expectations of the recombinant collagen and functional skincare markets, as well as institutional (e.g., CITIC) recognition of the recovery path [8][11].