Fangzheng Securities released a research report stating that it maintains the “Highly Recommended” rating of Giant Biotech (02367). Considering that the company's equity incentives strengthen confidence in growth, it is estimated that the net profit to the mother will be 1,334, 17.12, and 2,208 billion yuan in 2023-25. The company announced that according to the 2023 share option plan adopted on 8.17, a total of 20 million share options were granted to 128 grantees on 2023.12.28, accounting for 2.01% of the company's issued share capital.

According to the report, the company awarded an average of 2.4 million copies to 4 core executives, Fang Juan, Ye Juan, Zhang Huijuan, and Yan Yajuan, with an average of 600,000 shares each, accounting for 0.06% of the company's issued share capital; 2) The remaining 17.6 million were awarded to 124 company employees, accounting for 1.77% of the company's issued share capital. Award Price: HK$35.05 per share. Vesting period: 40%/30%/30% share options are vested one year/two years/three years from the date of grant. Performance target: Each grantor must meet their respective assessment goals, including (1) the Group's annual performance; (ii) key performance indicators for each department to which the undertaker belongs; (iii) the number of subsequent grants, such as the results of the annual personal assessment: According to the 2023 share option plan and the 2023 share award plan, the number of shares authorized by the plan is 79.5 million shares, accounting for about 8% of the company's issued share capital. The number of shares the service provider can grant in the future is 1.9 million shares, accounting for about 2% of the company's issued share capital.

The bank mentioned that on the industry side, there is great potential for restructuring collagen downstream of 100 billion dollars. Domestic product leaders are entering the market one after another, and the popularity of ingredients has spilled significantly to international leaders. Consumer education from leading companies is expected to drive penetration rates to continue to break the circle, and the penetration period of new ingredients and continuous consumer education from major manufacturers drive high prosperity and strong beta disruptions through the cosmetics cycle. Company growth highlights & core drivers: ① As the leader of recombinant collagen, the company's product positioning is strongly tied to the recombinant collagen concept, directly benefiting from industry growth dividends, driving the successful iteration of Kefumei 23M1-11's online growth rate, from collagen dressings to large collagen bars, and a gradual increase in the proportion of collagen milk, etc. Next year may become an important window period with categories; ② At the end of this year, new reserves have been completed. 24 years may usher in core volume to show the second series of core curves for the company. ③ Two injections are expected to be launched in '24. Leading raw material mentality nurture+early medical and aesthetic channel layout is expected to drive the rapid expansion of new injectable products, and the blue ocean injection market may usher in another breakthrough.