Giant Biogene (02367.HK): Analysis of Stock Price Volatility and Market Sentiment for the Recombinant Collagen Leader

This analysis is based on the hot event released by Tushare dc_hot (East Money App Hong Kong Stock Market Popularity List), focusing on the recent market performance of Giant Biogene (02367.HK), a leading enterprise in the recombinant collagen field [0]. As the first listed company in China’s recombinant collagen industry, the company’s 2025 YTD return reached 27.33%, but its recent stock price plummeted from the year’s high of HK$85 to around HK$35 (a drop of over 50%), mainly affected by short selling actions by foreign institutions and ingredient controversy involving its brand “Kefumei” [0]. Despite significant short-term fluctuations, the company’s fundamentals are strong: its revenue and net profit grew year-on-year in the first half of 2025, with a net profit margin of 37% and ROE of 29.86% [0].

Giant Biogene is a leading Chinese enterprise in bioactive material beauty and health products, with core businesses in functional skincare products and medical dressings, focusing on recombinant collagen ingredients [0]. On November 22, 2025, its stock price was HK$35.72, with a 52-week range of HK$35.14-HK$87.10 and a market capitalization of approximately HK$37.751 billion [1][3]. Recent stock price fluctuations are mainly driven by two factors:

1. Foreign Short Selling
   : Short selling actions led by institutions such as HSBC and Citibank caused a sharp correction in the stock price [0];
2. Brand Controversy
   : Its core brand “Kefumei” was involved in an ingredient controversy, triggering market sentiment fluctuations [0][2].
   There is a significant divergence between the company’s fundamentals and stock price performance: financial data shows strong profitability (37% net profit margin, ROE 29.86%), and its revenue and net profit grew year-on-year in the first half of 2025 [0], reflecting the growth potential of the recombinant collagen industry.

1. Industry Leader Position
   : As the first listed company in the industry, Giant Biogene has first-mover advantages and technical barriers in the recombinant collagen field [0];
2. Disconnect Between Market Sentiment and Fundamentals
   : Short-term short selling pressure and controversial events have overshadowed the company’s good financial performance, indicating an overreaction of the market to event-driven factors [0];
3. Industry Growth Prospects
   : The collagen and beauty health industries continued to grow in 2025, providing support for the company’s long-term development [0].

• Short-term stock price volatility risk: Short selling actions and controversial events may continue to affect stock price stability [0][2];
• Brand reputation risk: If the “Kefumei” controversy is not handled properly, it may affect consumer trust and sales [0].
  
  Opportunities
  :
• Industry growth dividend: The demand for recombinant collagen market expands, and the company as a leader is expected to benefit [0];
• Valuation repair space: If fundamentals continue to improve, there may be opportunities for valuation repair in the stock price [0].

Giant Biogene (02367.HK) is a leading enterprise in the recombinant collagen field, with strong profitability and industry status. Recent sharp fluctuations in stock price are mainly affected by short-term short selling actions and brand controversy, which contrasts with the company’s good fundamentals. Investors should pay attention to long-term industry trends and changes in the company’s fundamentals, while being alert to fluctuations caused by short-term market sentiment [0][1][3].