Popular Stock Analysis of Giant Biogene (02367.HK): Share Buybacks and Institutional Rating Adjustments Spark Market Attention

Giant Biogene (02367.HK) became a popular stock in the Hong Kong stock market in early January 2026, driven mainly by two factors. First, the company conducted consecutive share buybacks from January 5 to 6, 2026, repurchasing a total of 800,000 shares at a cost of approximately HK$27.25 million, with a repurchase price range of HK$33.84-HK$34.48 [1][2]. This continuous buyback action conveys the management’s confidence in the company’s value and may create squeezing pressure on short positions. Second, multiple institutional analysts have recently adjusted their ratings and target prices. Among them, China Merchants Securities International sharply lowered its rating from “Accumulate” to “Neutral”, cutting the target price from HK$64 to HK$35 (a 45% reduction), sparking widespread market discussion [3][4].

In terms of market reaction, the stock price fell by over 3% to HK$33.54 on the afternoon of December 30, 2025, but rebounded in early 2026, and is currently stabilizing around HK$34.38 [5]. Notably, the company has ample cash reserves of approximately RMB 9 billion on its books, providing a solid financial foundation for its buyback program and business development [6].

Institutions have shown clear divergence in their attitudes towards Giant Biogene recently. China Merchants Securities International adopts a cautious stance, lowering its rating from “Accumulate” to “Neutral”. Its core view is that the company is facing a series of reputational crises, with its core Kefumei brand experiencing double-digit sales declines during the Double 11 promotion. The investment logic has shifted from growth to strategic adjustment, and there is currently no obvious catalyst for a rebound [3]. UBS also lowered its rating from “Buy” to “Neutral”, cutting the target price to HK$39.5; Morgan Stanley lowered its target price to HK$42 [4].

However, some institutions remain optimistic. China International Capital Corporation (CICC) maintains a “Buy” rating, although it lowered the target price to HK$56, it is optimistic about the company’s medium-to-long-term growth potential; HSBC Research maintains a “Buy” rating with a target price of HK$46.4 [4]. This divergence among institutions reflects different market judgments on the trade-off between the company’s short-term difficulties and long-term value, and also provides investors with multi-angle references.

Giant Biogene is a leading enterprise in China’s functional skincare and medical dressing sectors, with exclusive “recombinant collagen” (Pure-Recombinant Collagen) technology, and has established high technical barriers in collaborative medical research and product development [6]. The company’s core Kefumei brand has a certain degree of brand recognition in the functional skincare market, but its sales performance has come under pressure recently. According to social media discussions, sales of New Year gift products through the Li Jiaqi channel performed reasonably well, partially offsetting the negative impact of the Double 11 sales decline [6].

From a valuation perspective, the current price-to-earnings (P/E) ratio is approximately 14.47x, the forward P/E ratio is about 10.52x, the price-to-book (P/B) ratio is 3.69x, the enterprise value-to-revenue (EV/Revenue) ratio is 4.10x, the EV/EBITDA ratio is approximately 8.90x, and the dividend yield is about 1.92% [0][4]. Compared with the average valuation of the Hong Kong Consumer Staples sector, the company’s current valuation is close to its historical low range.

From a technical analysis perspective, the stock price has recently fluctuated near the 5-day moving average, and some investors believe the current price is close to the “bottom” range [6]. Notably, the short-selling ratio in the market is relatively high, and the company’s continuous buyback action may create a short squeeze effect. The single-day trading volume reached HK$246 million on December 30, 2025, indicating high market attention [3].

: The reputational crisis pointed out by China Merchants Securities still requires attention, and there is uncertainty about whether the sales decline trend of the core Kefumei brand can be curbed. The expected sales expense ratio for 2026 is raised from 36% to 38%, which may put pressure on profit margins [3]. The risk of persists; sharp target price cuts by multiple major banks may trigger follow-up selling. The risk of also cannot be ignored; competition in the collagen sector is becoming increasingly fierce, and the company needs to continue investing in R&D and marketing to maintain its market position.

: China Merchants Securities sharply lowered its rating from “Accumulate” to “Neutral” and cut the target price by 45%, indicating significant institutional divergence on the short-term outlook; the current lack of a clear rebound catalyst may limit the upside potential of the stock price [3].

is the company’s most important moat; its cash reserves of approximately RMB 9 billion provide sufficient ammunition for the buyback program, as well as a financial buffer to cope with industry competition and business transformation [6]. The is expected to continue; according to the buyback authorization resolution, the company can repurchase a total of 107 million shares, and has so far repurchased 5.6 million shares in total, leaving ample room for subsequent buybacks [1]. In terms of , recombinant collagen technology has a high entry threshold, and the collaborative medical research and development model helps maintain the brand’s professional image. In terms of , the Consumer Defensive sector performed well today (+1.33%), providing certain support for the stock price [7].

Price Type	Price (HKD)	Description
Current Price	~34.38	Today’s trading level
Upside Target	35	New target price from China Merchants Securities
Upside Target	39.5-42	Target price range from UBS/Morgan Stanley
Upside Target	46.4-56	Target price range from HSBC/CICC
Downside Support	33	Recent low range
Key Support	31-32	Level of interest to some investors

The core logic behind Giant Biogene becoming a popular stock recently is the collision between share buyback activities and institutional rating adjustments, which has caused a sharp rise in market attention. In terms of the company’s fundamentals, its recombinant collagen technology remains competitive, and its ample cash reserves provide support for valuation, but it faces short-term challenges including a brand crisis and slowing sales growth. The divergence in institutional ratings reflects different market judgments on short-term difficulties and long-term value; investors need to closely monitor the sales recovery of the Kefumei brand, the progress of the buyback program, and the effectiveness of the expansion of the new product matrix in 2026. The relatively strong performance of the Consumer Defensive sector may provide certain sector support for the stock price.

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Note: This report is compiled based on public information, for reference only, and does not constitute investment advice. Investors in Hong Kong Stock Connect and cross-border investments should note differences in exchange rates and trading rules.