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ISIN: HK0656038673
WKN: A0MVLL
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Fosun International · ISIN: HK0656038673 · EQS - Company News (1 News)
Country: Hongkong · Primary market: Hong Kong · EQS NID: 2174556
25 July 2025 04:45AM

Citi Renews Coverage of Fosun International with a 'Buy' Rating



EQS Newswire / 25/07/2025 / 04:45 CET/CEST

HONG KONG SAR - Media OutReach Newswire - 25 July 2025 - Citi issued its latest report on 23 July, announcing the renewing coverage on Fosun International (00656.HK) with a "Buy" rating and a target price of HKD5.86.

Citi has made material changes to its financial estimates on Fosun International, expecting core profit for financial year 2025 to grow by 197% year on year to RMB2.2 billion (excluding the one-off non-cash loss of RMB5.1 billion from Cainiao in financial year 2024). It also expects an 81% year-on-year profit growth in financial year 2026, primarily driven by the earnings recovery at the "Happiness" segment and lowered finance costs from the Group's proactive deleveraging efforts.

Citi also highlights that Fosun is accelerating its "strategic advancements and exits" strategy, targeting to divest over RMB80 billion in heavy assets and non-core assets. By end of June 2025, Fosun completed the sale of all its 99.743% stake in the German private bank HAL, while retaining the asset servicing business HAFS. Citi believes that the capital recycling from asset divestments will enhance shareholders' returns and narrow the net asset value discount.

The report points out that Fosun's current share price trades at a 71% discount to its net asset value. Despite its stock performance outperforming the Hang Seng Index over the past 30 days (+14% vs. +7%), its valuation still has significant room for recovery. Citi is optimistic about Fosun International's future earnings improvement and the re-rating potential brought by its deleveraging strategy, thus assigning a "Buy" rating to Fosun International.


Hashtag: #Fosun #復星國際

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

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News Source: Fosun International

25/07/2025 Dissemination of a Financial Press Release, transmitted by EQS News.
The issuer is solely responsible for the content of this announcement.

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