Club Med resorts expand to the Middle East, Fosun International's globalization capabilities build a 'moat'.

Recently, it was reported that Club Med, the all-inclusive vacation service brand under Fosun known for its "all-inclusive" model, will open its first Middle East resort in Oman. This Hong Kong-listed company, renowned for its "globalization" capabilities, has once again attracted market attention.

Analysts noted that with the increasing maturity of the "global organization + local operation" model, Fosun's global business scope is expanding. In addition to focusing on Europe, it is also targeting emerging markets such as the Middle East, North Africa, and North America, with subsidiaries like Henlius, SISRAM Medical, Lanvin Group, and Fosun RZ Capital making strategic moves.

Previously, Henlius partnered with KGbio to advance the approval and launch of Serplulimab (Zerpidio) in 22 emerging markets across Southeast Asia, the Middle East, and North Africa, achieving steady progress. On December 28, 2023, PT Kalbe Genexine Biologics (KGbio), Henlius' commercial partner for Serplulimab in ASEAN countries, received drug registration approval. Serplulimab became the first domestically developed anti-PD-1 monoclonal antibody approved in Southeast Asia, receiving clearance from Indonesia's Food and Drug Administration.

SISRAM Medical has started its aesthetic medicine market operations in the Middle East, expanding to Asia-Pacific and North America. Its global marketing network now covers over 100 countries and regions, with direct sales accounting for 78% of revenue in 2023.

Lanvin Group's brand Lanvin successfully opened its first store in Riyadh, Saudi Arabia, with plans to add two more stores in the future. The 2023 performance report showed that Lanvin Group's revenue reached €426 million, with Europe, Africa, and the Middle East contributing the highest share at 47%.

It appears that Fosun's "globalization" strategy has yielded substantial concrete results.

Guo Guangchang, Chairman of Fosun International, has repeatedly stated publicly that "globalization" is one of Fosun's core growth engines. In fact, since its IPO in 2007, Fosun has pursued globalization for nearly 17 years. Today, Fosun has integrated internationalization into every aspect of its business, with deep industrial footprints across five continents and over 35 countries and regions. In 2023, Fosun's overseas revenue accounted for 45% of total revenue, reaching RMB 89.2 billion, with rapid growth and a 10-year CAGR of 55%.

Focusing on capital markets, Hong Kong stocks, as the only market connecting China's mainland and overseas capital pools, provide a pathway for Chinese companies to attract global funds. While international capital values local operational strengths, it also emphasizes global capabilities. Fosun International's long-standing globalization and ecosystem synergies stand out among Hong Kong-listed companies, bolstering its financial fundamentals and growth prospects.

Founder Securities noted in a research report that Fosun adheres to "innovation" and "globalization" as dual growth engines, making it one of the few Chinese companies with deep technological expertise and global operational capabilities. On June 3, Founder Securities reiterated its "recommend" rating for Fosun International and raised its target price to HKD 7.

Analysts also pointed out that in a recovering macroeconomic environment, high-quality companies with "moats" are likely to maintain solid growth rates. Coupled with Hong Kong stocks' attractive valuations, their investment value is noteworthy.$FOSUN INTL(00656.HK)