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<Research>M Stanley Axes GIANT BIOGENE (02367.HK) TP to $42, Expects Increased Marketing to Drive Sales Recovery
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GIANT BIOGENE (02367.HK) recently adjusted its 2025 sales guidance from a 25% growth to flat or mild decline, Morgan Stanley's research report said. Although the company had initially projected a 20-30% sales growth in 4Q25 and during the Double 11 period this year, industry headwinds prevented these targets from realizing. Looking ahead, the broker expected the company to take various actions to propel sales recovery. Firstly, it believed that increasing marketing investment will help offset the impact of previous controversies, rebuild brand momentum, and support new product launches. The company's higher margins suggest that increased marketing expenses will not materially affect profit. Morgan Stanley revised down GIANT BIOGENE’s revenue forecasts for 2025-27 by 20%/ 32%/ 35%, expecting net profit to drop 8% YoY in 2025 and 2026, but rebound by 20% in 2027. The target price was axed from HKD78 to HKD42, with a rating of Overweight. AASTOCKS Financial News Website: www.aastocks.com |
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