Analysis of HK Hot Stock Giant Biogene (02367.HK) Amid Continuous Repurchases

Giant Biogene (02367.HK) operates in the Personal & Household Goods & Services industry under the Consumer Staples (non-cyclical) sector, focusing on bioactive material-based beauty and health products including recombinant collagen skincare, medical dressings, and rare functional foods using ginsenoside technology[6].
Between Dec 9-23, 2025, the company conducted 11 consecutive days of share repurchases, buying back 4.4 million shares for a total of HK$155 million[2][3][4][5]. On Dec 2, it had announced a large-scale repurchase plan to buy back up to 104 million shares (10% of issued shares) for approximately HK$3.7 billion using internal funds[8]. These repurchase activities, signaling management confidence in long-term value, are likely the primary reason for the stock’s appearance on the HK popularity list[1].
On Dec 23, the stock closed at HK$35.74, down 0.89%, with a trading volume of HK$208 million[6]. Although the stock fell 1.81% during the repurchase period, continuous repurchase activity attracted investor attention. Post-event (Dec 24), China Merchants Securities (HK) downgraded the stock to neutral due to reputation crisis concerns, Double 11 sales declines of its core brand Kefumei, a 2026 strategic adjustment period, and lack of short-term catalysts[7].

The combination of continuous repurchases (positive signal of management confidence) and the post-event downgrade (highlighting underlying operational challenges) creates a mixed market narrative. Valuation metrics further reflect this complexity: the stock has a lower P/E ratio (14.9x vs industry 28.2x) but a higher P/B ratio (3.7x vs industry 2.3x)[6]. This suggests market skepticism about future earnings growth despite repurchase support, indicating a need for careful assessment of the company’s strategic adjustment progress.

1. Reputation crisis and core brand sales decline as identified by the downgrade[7]
2. Short-term lack of obvious catalysts due to 2026 strategic adjustment[7]
3. Higher P/B ratio compared to industry peers, indicating potential overvaluation based on book value[6]

1. The large-scale repurchase plan (up to 10% of shares) could provide downward price support if fully executed[8]
2. Focus on high-growth segments like recombinant collagen skincare and medical dressings remains a long-term growth driver

Giant Biogene (02367.HK) became a HK hot stock due to continuous share repurchases (11 days, HK$155 million) and a massive repurchase plan. On Dec 23, 2025, it closed at HK$35.74 with HK$208 million in volume. Post-event downgrade raises concerns about reputation and sales, while repurchase activities signal management confidence. Valuation shows a low P/E but high P/B relative to the industry, indicating mixed market sentiment.