Investment Rating - The report maintains a "Buy" rating for Giant Biogene (2367) with a target price of HKD 50.22, up from HKD 47.53, based on a 2024 PE of 26x [3][4] Core Views - Giant Biogene's 2023 revenue and net profit reached RMB 3.52 billion and RMB 1.45 billion, up 49% and 44.9% YoY respectively, exceeding expectations [3] - The company's gross margin remained high at 83.6% in 2023, with a net profit margin of 41.1% [3] - The star product Collagen Stick drove rapid online growth for the KFM brand, contributing over 30% of its revenue [3] - The company has a strong pipeline of cosmetic and medical aesthetic products, positioning it well in the recombinant collagen sector [3] Financial Performance - 2023 revenue: RMB 3.52 billion (+49% YoY) [3] - 2023 net profit: RMB 1.45 billion (+44.9% YoY) [3] - 2023 adjusted net profit: RMB 1.47 billion (+39% YoY) [3] - 2023 gross margin: 83.6% (-0.76pct YoY) [3] - 2023 net profit margin: 41.1% (-1.3pct YoY) [3] Brand Performance - KFM brand revenue: RMB 2.79 billion (+73% YoY) [3] - KFM Collagen Stick estimated to contribute over 30% of brand revenue [3] - KFM dressings revenue: RMB 861 million (+13% YoY) [3] - Klenzit brand revenue: RMB 617 million (-0.3% YoY) [3] Channel Performance - Direct sales revenue: RMB 2.42 billion (69% of total) [3] - DTC online direct sales: RMB 2.16 billion (+77% YoY, 61% of total) [3] - Distribution revenue: RMB 1.10 billion (+15% YoY, 31% of total) [3] Product Pipeline - Klenzit: Launched star products like Da Mo Wang and Peng Peng Ci Pao, with new eye cream and face cream recently introduced [3] - KFM: Recently launched Focus series face cream targeting skin brightening and firming [3] - Medical aesthetics: 4 recombinant collagen products in pipeline, expected to drive future growth [3] Valuation and Forecast - 2024-2026 EPS forecast: RMB 1.76, RMB 2.22, RMB 2.75 [3] - Current price: HKD 43.30 [4] - 52-week price range: HKD 29.30-52.30 [5] - Current market cap: HKD 43.08 billion [5]
巨子生物2023年报点评：业绩超预期，明星单品放量助力