GIANT BIOGENE (02367) fell over 3% in afternoon trading. As of the time of writing, the stock was down 2.95% to HK$33.54, with a turnover of HK$246 million. China Merchants Securities International released a research report stating that it downgraded GIANT BIOGENE's rating from "Overweight" to "Neutral" and slashed its target price by 45% from HK$64 to HK$35. The report indicated that the company is facing numerous challenges, including a series of reputation crises and a double-digit decline for its core brand, Curewell, during the Double 11 shopping festival. While the institution believes the stock price has largely digested these related issues and the subsequent downward revision of its 2025 sales guidance, it maintains a cautious outlook for 2026 prospects. The institution considers the current market consensus to be potentially overly optimistic. It stated that GIANT BIOGENE's investment thesis has shifted from growth to strategic adjustment, and it believes there is currently a lack of clear catalysts for a rebound. A wait-and-see attitude is advised until signs of stabilization become more evident. The institution has lowered its average revenue forecasts for 2025-2027 by 30% to reflect management's latest guidance and its more prudent outlook for 2026. It raised its sales expense ratio forecast from 36% to 38% to reflect execution challenges during this adjustment phase. The target price is based on a reduction of the forward 2026 price-to-earnings ratio from 21.5x to 16x.