Citi, UBS, GS view positive on Fosun's core business-focused strategy
2024年4月23日 - 1:28PM
JCN Newswire
Fosun International (HKEX: 0656) has recently received bullish
recommendations from multiple investment banks after announcing its
2023 annual results. On 12 April 2024, Goldman Sachs (GS) issued a
research report stating that Fosun's industrial operation profit
reached RMB4.9 billion, up by approximately 20% year-on-year
compared to 2022; profit attributable to shareholders of the parent
company reached RMB1.38 billion. Goldman Sachs gave Fosun
International a target price of HK$4.90, representing an upside of
over 13%. Fosun International's businesses in Health, Happiness and
Wealth segments are expected to keep on growing steadily in the
future. Goldman Sachs pointed out that although Fosun Pharma was
affected by the decline in Covid-related business revenue last
year, it expected a sales growth recovery in 2024; Fosun Tourism
Group's attributable profit in 2024 is expected to further improve
to RMB321 million on better performance from resort operation and
tourism services business; it further pointed out that the
insurance business posted a net profit of RMB790 million and the
profit from BCP is expected to remain strong in 2024 on elevated
interest rate spread.
In its research report published at the end of March, UBS was also
optimistic about Fosun International's strategy of focusing on its
core businesses, pointing out that in the future Fosun will
continue to execute its disposal plans of exiting non-core assets
and concentrate resources on sustainable, predictable and stable
core businesses, striving to achieve more efficient resource
allocation and profit growth in those areas. UBS believed that with
the execution of these disposal plans, Fosun International's
profitability is expected to further improve, based on which it
gave a target price of HK$6.30. With the momentum in China's
economy pick up, the execution of streamlining operations and the
increasing dividends to shareholders in the future, the valuation
of Fosun International will further improve.
Citi Research also issued a report in which it expressed its
optimistic views about Fosun International's market outlook. Citi
Research believed that Fosun International's profitability in 2023
was attributable to an increase in operating profit from the
insurance business, a 19.2% year-on-year growth in Club Med's
business volume that exceeded expectations, and better performance
in the Asset Management Division which was driven by improvement in
the Group's asset portfolio profitability. The report pointed out
that Fosun will continue to look for appropriate opportunities to
sell non-core and non-strategic assets and promote future
development through synergies amongst subsidiaries. Citi Research
gave Fosun a "Buy" rating, with a target price of HK$ 6.30, an
expected increase of approximately 57%.
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