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CMB International: Juzi Biotech places shares to raise funds to promote core business development
CMB International released a report on May 21, saying that Giant Biotech announced on May 17 that it would sell 49% per share.blockchaingamesearncrypto.4 Hong Kong dollarsblockchaingamesearncrypto33.22 million shares were placed at a price of 3.23% of the company's total share capital. This price represents a discount of approximately 6.7% to the closing price of the previous trading day, and the net funds raised are expected to be approximately HK$1.627 billion.
About 90% of the placement funds are planned to be used for core business expansion and ecosystem construction. CMB International expects that with sufficient cash reserves, Juzi Biotech will enhance its brand influence and expand its product line layout.
The report also mentioned that it is expected that collagen rods will contribute more than 30% of the revenue of the Fumei brand in 2023. Giant Biotech plans to launch new products such as Focus Series and Film Series, which will achieve rapid growth during the large-scale promotion period.
CMB International believes that the cycle of giant biological products is on the rise, and its performance during the promotion period is worth looking forward to. The growth prospects for online sales of the company's functional skin care products continue to be optimistic, and new injectable collagen products are expected to be approved during the year.
Based on the DCF model, CMB International raised its target price from HK$57.14 to HK$60.83 and maintained its "Buy" rating.