Morgan Stanley: Giant Biogene (2367.HK) — New Product, Strong Traction
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Morgan Stanley highlights strong initial traction for Giant Biogene's new product, the Kemin Biphasic Super Radiance Stick. Within seven days of launch, the product generated over RMB 30 million in gross merchandise value through proprietary e-commerce and livestreaming channels. This figure excludes sales from top streamer Li Jiaqi but includes a special appearance by Jiang Nanxiang. Management projects full-year 2026 GMV could reach RMB 200 million, indicating momentum that significantly exceeds initial expectations.
Morgan Stanley interprets this early disclosure as a strategic move to demonstrate robust organic demand to e-commerce platforms and key opinion leaders ahead of the upcoming 618 shopping festival, thereby strengthening the company's bargaining position. Concurrently, Giant Biogene plans to revitalize sales of its existing collagen stick, which experienced a decline in 2025 due to negative external sentiment, with estimated sales falling to RMB 1.1-1.2 billion. Because the two products target distinct consumer needs—repair versus brightening—cannibalization is expected to be minimal. Both products carry gross margins above the company's 2025 average of 80%.
Morgan Stanley maintains an Overweight rating with a target price of HKD 43, based on 21 times 2026 estimated earnings. The firm believes the market currently underappreciates the company's biotechnology advantages.