Jingu Financial News | CICC issued research reports stating that during singles' day sales, JuZiBiotech (02367) saw strong growth in online sales of its two core brands KeFuMei and KeLiJin. The online omni-channel GMV of KeFuMei and KeLiJin increased by over 80% and over 150% respectively year-on-year, showing faster growth compared to this year's "618". KeFuMei and KeLiJin experienced explosive growth on the Douyin platform, with year-on-year growth of over 100% and over 500% respectively during singles' day sales. KeFuMei's collagen sticks continued high growth with impressive performance of new products. KeLiJin intensified its new product efforts, rapidly releasing growth potential. The bank believes that the continuously enriched product matrix will drive long-term brand growth.
The firm remains bullish on the rapid growth of the company's skincare products, expecting the injection-type collagen products to be approved in Q1 2025. The firm has slightly raised the company's earnings forecasts for FY24-26, increasing the target price to 66.15 HKD based on the DCF model (WACC: 10.9%, perpetual growth rate: 3.0%; previous value: 62.07 HKD), with the target price corresponding to a 25x adjusted pe for FY25E and a 20x adjusted pe for FY26E. The rating remains "buy."
