Giant Biogene's profit drops on higher distribution expenses

Giant Biogene Holding

18/08/2026 11:15

Overview
China skincare maker's half-year revenue fell 6.3% yr/yr to RMB 2.92 bln
Net profit attributable to shareholders dropped 20.5% to RMB 939.7 mln
Company cites lower gross profit and higher selling expenses for profit decline

Outlook
Giant Biogene plans to deploy HK$421.3 mln of unutilized 2024 placement proceeds within the next two years
2025 placement proceeds of HK$1.90 bln are planned for gradual use within the next five years

Result Drivers
LOWER GROSS PROFIT - Co said gross profit fell 8.8% yr/yr, contributing to the decline in net profit
HIGHER SELLING EXPENSES - Co cited increased selling and distribution expenses as a factor in lower profitability

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 2.92 bln
 
H1 Net Income Attributable
 
RMB 939.70 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the personal products peer group is "buy"
Wall Street's median 12-month price target for Giant Biogene Holding Co Ltd is HK$38.70, about 30% above its August 17 closing price of HK$29.78
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)