Daily Investment Strategy

2025.07.02 09:00

Daily focusGiant Biogene(2367)

As the third-largest medical aesthetic skincare brand in China, it focuses on core products including recombinant collagen and rare ginsenosides, with stable performance from its Comfy and Collgene brands. Recently, sales were temporarily affected due to issues with testing standards for recombinant collagen products, but management emphasized that the situation is controllable, and offline channels along with medical dressing products performed well, indicating a solid business foundation. The company actively promotes transparent communication and consumer education to enhance brand image and collaborates with research institutions to advance industry standards, consolidating its technological leadership. Benefiting from the structural growth trend in medical aesthetic skincare, Giant Biogene is expected to continue expanding its market share. However, intensified industry competition, R&D risks, and regulatory uncertainties remain challenges, and increased marketing expenses in the short term may pressure profit margins. Overall, the company possesses recovery momentum and long-term growth potential.

 

Trump says will not extend the deadline for negotiate trade agreements with the United States

Trump’s one beautiful bill passed in the Senate, with the House set to conduct final voting on Wednesday. U.S. President Trump stated on Tuesday that he does not consider extending the July 9 deadline for countries to negotiate trade agreements with the United States.On the other hand, Federal Reserve Chairman Powell clearly indicated on Tuesday that were it not for President Trump’s tariff plans, the U.S. central bank should have already implemented more accommodative monetary policy by now. Regarding economic data, the ISM Manufacturing Index rose slightly by 0.5 points to 49 last month, with readings below 50 indicating industry contraction. The raw materials purchasing price index shows inflation has accelerated slightly. Order index posted their largest decline in three months and marked the fifth consecutive month of decline, possibly reflecting the impact of increased tariffs and overall economic slowdown.

On Monday, the Southbound Stock Connect recorded a net inflow of HKD 5.2 billion. Among the stocks, China Construction Bank (939) saw the largest net inflow, amounting to HKD 957 million, followed by SMIC (981). On the other hand, Alibaba (9988) recorded the largest net outflow of HKD 551 million, followed by Bank of China (3988).

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Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to: https://apps.sfc.https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.

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