The Times Australia
News From Asia

.

Goldman Sachs Reiterates "Buy" Rating on Fosun, Recognizing Fosun’s Core Business-focused Strategy and Healthy Recovery of Core Businesses

HONG KONG SAR - Media OutReach - 12 September 2023 - Fosun International Limited (HKEX stock code: 00656, "Fosun International" or the "Company"), together with its subsidiaries ("Fosun" or the "Group"), announced its interim results at the end of August 2023.

Goldman Sachs recently published a research report, recognizing the healthy recovery of Fosun's core businesses and expressing its bullish view on Fosun's strategy of focusing on the development of core businesses where it boasts clear competitive advantages. Goldman Sachs assigned the Company a target price of HK$7.7, with approximately 57% upside.

Goldmans Sachs pointed out that Fosun International's 2023 interim results was in line with its expectations, the Group achieved a total revenue of RMB97.06 billion, representing a year-on-year increase of approximately 11%; the key indicator reflecting the Company's operational capabilities - industrial operation profit, if excluding the profit of disposed enterprises (including transactions yet to be completed), representing a significant year-on-year increase of 66%, demonstrating significant improvement in the profitability of core businesses. Taking Fosun's Happiness segment as an example, Fosun Tourism Group (FTG) and Yuyuan saw a strong recovery. Goldman Sachs pointed out that the net profit improvement was mainly attributable to profit turnaround from FTG with solid recovery in Club Med and Atlantis Sanya; and the notable net profit growth for Yuyuan (a year-on-year increase of 226%) was driven by Yuyuan's jewelry and fashion business (a year-on-year increase of 35%).

Goldman Sachs said while acknowledging the continued challenges from the macro environment such as weak consumption sentiment, geopolitics, higher interest rate, Fosun has proactively implemented its business streamlining and core business-focused strategy, centering family consumption, and enhancing asset-light operations, therefore, Fosun's management is optimistic for the Company to weather through economic cycles. Goldman Sachs also recognized Fosun's efforts in the disposal of non-strategy and non-core assets and its active efforts in exploring financing channels, thereby maintaining a steady debt to capital ratio. As of 30 June 2023, Fosun's cash and bank balances and term deposits were abundant, reaching approximately RMB115 billion, its total debts to total capital ratio was 51.8% and the average cost of debt was around 5.3%, maintaining at a manageable level. In the first half of 2023, cash inflow from divestment amounted to more than RMB14.0 billion at the holding company level and more than RMB20.0 billion at the consolidated level. In January 2023, Fosun High Technology successfully entered into a syndicated loan agreement for an amount of RMB12 billion with eight domestic banks. As of 30 June 2023, the Group had no material offshore bonds due in one year.

Looking ahead, Goldman Sachs believed that after divesting its non-strategy and non-core assets, the Group would be able to focus more on its core businesses and empowering its subsidiaries to further improve underlying business performance in coming years. The firm sees value at the current level and looks for more signs of execution on deleveraging and earnings recovery, therefore it maintained its Buy rating on Fosun.

Hashtag: #Fosun

The issuer is solely responsible for the content of this announcement.

Times Magazine

Headless CMS in Digital Twins and 3D Product Experiences

Image by freepik As the metaverse becomes more advanced and accessible, it's clear that multiple sectors will use digital twins and 3D product experiences to visualize, connect, and streamline efforts better. A digital twin is a virtual replica of ...

The Decline of Hyper-Casual: How Mid-Core Mobile Games Took Over in 2025

In recent years, the mobile gaming landscape has undergone a significant transformation, with mid-core mobile games emerging as the dominant force in app stores by 2025. This shift is underpinned by changing user habits and evolving monetization tr...

Understanding ITIL 4 and PRINCE2 Project Management Synergy

Key Highlights ITIL 4 focuses on IT service management, emphasising continual improvement and value creation through modern digital transformation approaches. PRINCE2 project management supports systematic planning and execution of projects wit...

What AI Adoption Means for the Future of Workplace Risk Management

Image by freepik As industrial operations become more complex and fast-paced, the risks faced by workers and employers alike continue to grow. Traditional safety models—reliant on manual oversight, reactive investigations, and standardised checklist...

From Beach Bops to Alpine Anthems: Your Sonos Survival Guide for a Long Weekend Escape

Alright, fellow adventurers and relaxation enthusiasts! So, you've packed your bags, charged your devices, and mentally prepared for that glorious King's Birthday long weekend. But hold on, are you really ready? Because a true long weekend warrior kn...

Effective Commercial Pest Control Solutions for a Safer Workplace

Keeping a workplace clean, safe, and free from pests is essential for maintaining productivity, protecting employee health, and upholding a company's reputation. Pests pose health risks, can cause structural damage, and can lead to serious legal an...

The Times Features

Tricia Paoluccio designer to the stars

The Case for Nuturing Creativity in the Classroom, and in our Lives I am an actress and an artist who has had the privilege of sharing my work across many countries, touring my ...

Duke of Dural to Get Rooftop Bar as New Owners Invest in Venue Upgrade

The Duke of Dural, in Sydney’s north-west, is set for a major uplift under new ownership, following its acquisition by hospitality group Good Beer Company this week. Led by resp...

Prefab’s Second Life: Why Australia’s Backyard Boom Needs a Circular Makeover

The humble granny flat is being reimagined not just as a fix for housing shortages, but as a cornerstone of circular, factory-built architecture. But are our systems ready to s...

Melbourne’s Burglary Boom: Break-Ins Surge Nearly 25%

Victorian homeowners are being warned to act now, as rising break-ins and falling arrest rates paint a worrying picture for suburban safety. Melbourne residents are facing an ...

Exploring the Curriculum at a Modern Junior School in Melbourne

Key Highlights The curriculum at junior schools emphasises whole-person development, catering to children’s physical, emotional, and intellectual needs. It ensures early year...

Distressed by all the bad news? Here’s how to stay informed but still look after yourself

If you’re feeling like the news is particularly bad at the moment, you’re not alone. But many of us can’t look away – and don’t want to. Engaging with news can help us make ...