Fosun International: Recovery in progress, but execution remains key; maintain Neutral

研报英文原文证据摘录

Fosun International: Recovery in progress, but execution remains key; maintain Neutral

Global Research

17 June 2026ab

Fosun International Equities

ChinaRecovery in progress, but execution remains key;

maintain Neutral Industrial, Diversified

12-month rating Neutral

12m price target HK$4.40Further upside hinges on clearer execution and earnings recovery

Prior : HK$5.40

Fosun's share price has rebounded c12% since February despite weak FY25 results,

supported by management's medium-term targets to improve profitability, reduce Price (17 Jun 2026) HK$4.03

leverage, and enhance shareholder returns. We believe further upside will hinge on RIC: 0656.HK BBG: 656 HK

clearer execution of value-unlocking initiatives and a sustained recovery in underlying

operational performance. However, the muted macro recovery in mainland China would Trading data and key metrics

remain a key risk, limiting the scope of a meaningful re-rating. With the stock trading at 52-wk range HK$6.05-3.59

a c45% discount to NAV, broadly in line with its historical average, we see balanced risk- Market cap. HK$32.8b/US$4.18b

reward at current levels. We maintain our Neutral rating, and lower our price target by Shares o/s 8,135m (ORD)

c19% as we mark-to-market the value of its asset portfolio and lower the target NAV Free float 29%

discount to c40% (from 60% previously) to reflect lower refinancing requirements and Avg. daily volume ('000) 12,728

management initiatives to drive shareholder return. Avg. daily value (m) HK$51.2

Common s/h equity (12/26E) Rmb96.5b

Fosun targets to deliver RMB10bn annual profit in medium term P/BV (12/26E) 0.3x

We believe refinancing concern has substantially reduced following the continued asset Net debt to EBITDA (12/26E) 12.5x