Domestic and foreign brokerages unanimously optimistic about FOSUN INTL, Citigroup raises target price to HKD 6.5

According to Zhitong Finance APP, on August 29, FOSUN INTL (00656) held its 2025 interim performance briefing. The management released clear strategic signals, emphasizing a focus on core businesses, deepening global layout, and continuously increasing innovation investment to lay a solid foundation for future development. After the performance meeting, domestic and foreign brokerages successively published research reports optimistic about FOSUN INTL, affirming its future prospects and long-term value.

Citigroup and Industrial Securities respectively reiterated their "Buy" and "Overweight" ratings, expressing optimism about FOSUN's strategy of "focusing on core business with both advances and retreats" and the positive progress in optimizing its asset structure. Previously, Citigroup resumed coverage of FOSUN INTL on July 23 and gave it a "Buy" rating. After this performance meeting, it published another research report, reaffirming the "Buy" rating and raising the target price from HKD 5.86 to HKD 6.50.

Citigroup pointed out that FOSUN is accelerating its "advances and retreats" strategy. As of June 30, 2025, the group has completed the sale of 99.743% of its stake in the German private bank HAL while retaining the asset service business HAFS. Citigroup believes that the cash inflow from asset exits will help enhance shareholder returns. The report noted that FOSUN's stock price is trading at a 72% discount to NAV, and considering the market value of listed investments in NAV, it believes there is potential for valuation recovery for FOSUN INTL, thus raising the company's target price. Industrial Securities also recognized FOSUN's continuous optimization of its asset portfolio and clear strategic direction, noting that in the first half of the year, the expansion of overseas dollar bonds, the formation of overseas syndicates, and the issuance of domestic bonds have led to a decline in the group's financing costs of over 30 basis points compared to the end of 2024.

Citigroup and Industrial Securities also pointed out that FOSUN's core industries, such as innovative pharmaceuticals, have achieved multiple breakthroughs, and the travel and tourism business Club Med has reached new highs, with steady growth in the insurance business. In the health sector, the biopharmaceutical segment has performed particularly well, with several innovative drugs from Junshi Biosciences achieving significant breakthroughs. The world's first approved anti-PD-1 monoclonal antibody H drug, Surufatinib (Hanshu), for first-line treatment of small cell lung cancer, achieved global sales revenue of RMB 597.7 million. Currently, the H drug has been successfully approved for marketing in nearly 40 countries and regions, covering nearly half of the global population. HLX43, as the world's first PD-L1 targeted ADC drug to enter Phase II clinical trials, has begun clinical research for non-small cell lung cancer, thymic cancer, and other solid tumors in regions such as China, the United States, Japan, and Australia. Another innovative drug, HLX22, has been recognized as an orphan drug by the EU for the treatment of gastric cancer, becoming the world's first anti-HER2 therapy recognized by both the EU and the United States.

Industrial Securities also pointed out that FOSUN's overseas revenue accounted for 53%, an increase of 6.6 percentage points compared to the same period last year, indicating significant results from its global business layout. Club Med's Mediterranean club achieved record global performance, with revenue reaching RMB 9.25 billion. The insurance segment also performed well, with the group's insurance business achieving revenue of RMB 20.89 billion in the first half of the year. FOSUN's Portuguese insurance overseas gross premium reached EUR 924 million, receiving an "A" rating from S&P; Dingrui Reinsurance's gross premium income reached USD 1.061 billion, a year-on-year increase of 25.1%, demonstrating strong growth momentum In addition, FOSUN INTL continues to promote innovation in the fintech sector. Its subsidiary, Xinglu Technology, launched a one-stop RWA technology platform, FinRWA Platform (FRP), and is actively promoting asset tokenization projects. FOSUN INTL Securities and Asset Management Company have completed the upgrades for License No. 1 and No. 9, respectively, and the construction of the virtual asset and RWA platform is progressing steadily.

Overall, FOSUN has gained positive outlook from domestic and foreign brokerages by focusing on advantageous industries, optimizing capital structure, and deepening globalization, with its future development potential highly anticipated by the market