planetcryptogame| Giant Biotech rose more than 3% against the market in the afternoon and CMB International maintains its "Buy" rating

Giant Biotech (02367) rose 3.3 percent against the market in the afternoonplanetcryptogame.13%planetcryptogame, currently reported at HK$51.10, with a turnover of HK$236 million.

CMB International issued a report stating that Juzi Biotech announced on May 17 that it would place 33.22 million shares at HK$49.4 per share, accounting for approximately 3.23% of the company's enlarged share capital. The placing price represented a discount of approximately 6.7% to the closing price on May 16. The net proceeds from the placement are expected to be approximately HK$1.627 billion, with approximately 90% intended to be used for the development of core businesses and ecosystem layout. The bank expects that the company will use sufficient cash reserves to build brand influence and further enrich the product line layout. The bank estimates that collagen rods will account for more than 30% of the revenue of the Kefu brand in 2023, and expects new products such as the Kefu Focus Series and the Kolejin Film Series to be rapidly increased during the promotion period.

CMB International pointed out that the company's product cycle is upward and it looks forward to promoting bright performance; it continues to be optimistic about the continued growth of online sales of Giant Biofunctional Skin Care Products, and expects injectable collagen products to be approved within the year. Based on the DCF model, the bank raised its target price from HK$57.14 to HK$60.83, maintaining its "Buy" rating.