Dubai PR Network, Online Press Release from Dubai and Middle East
Filter PR by
HSBC Reiterates "Buy" Rating on Fosun and Raises Target Price to HK$11.50
HONG KONG SAR - Media OutReach - 2 February 2023 - On 30 January 2023, HSBC Global Research ('HSBC') published a report pointing out that Fosun International Limited ('Fosun International' or the 'Company') (HKEX: 00656) is recovering vigorously. HSBC maintained 'Buy' rating on Fosun International and raised the target price to HK$11.50.

HSBC pointed out that Fosun's secured RMB12 billion syndicated loan is the largest private enterprise loan led by five major state-owned banks in cooperation with policy banks and joint-stock banks since the Central Economic Work Conference explicitly proposed in December 2022 to encourage and support the development of the private economy and private enterprises. HSBC expects the official landing of the loan to be of great relief to Fosun's cash crunch; it should also serve as a catalyst to rekindle market confidence in the Company's operating stability.

As of the end of July 2022, Fosun had repurchased or purchased overseas bonds with an equivalent par value of USD366 million prior to maturity, partially replaced by low-yield loans to reduce interest payments. HSBC emphasized in the report that Fosun has demonstrated its active debt management and it is expected that the Company's liquidity and earnings this year will improve with debt optimization.

HSBC believes that although Fosun International recently issued a profit warning on the Hong Kong Stock Exchange, overall speaking, the negative impacts will be gone gradually. The bank believes that the worst has passed. With debt optimization and consumption recovery, Fosun International's subsidiaries are well-positioned to capture post-pandemic travel, retail, and medical demand, so should post strong earnings this year.

In addition to HSBC, Morgan Stanley earlier expressed its optimistic view on Fosun International and reiterated its 'Overweight' rating. According to Morgan Stanley, Fosun's syndicated loan can further improve its liquidity, significantly helping lift market confidence in Fosun's stability. The firm believes that after several months of active deleveraging efforts, Fosun's liquidity risk has been greatly reduced. Looking ahead, the reopening of China will help boost fundamentals, especially in businesses such as tourism, retail, and investment.

It is worth mentioning that the recovery trend has been reflected in Fosun's recent business operations in the tourism, health and other sectors. Regarding the tourism sector, the 2023 Yuyuan Garden Lantern Festival being held in the Grand Yuyuan has attracted many citizens and tourists; Club Med's bookings in the first half of 2023 have greatly exceeded the same period in 2019 before the COVID-19 pandemic. During the Spring Festival holiday, the occupancy rate of Club Med resorts in China continued to rise. As one of the preferred destinations for domestic travel, Atlantis Sanya, a benchmark project of Fosun Tourism Group, has continued to be in high demand since the beginning of 2023. During the New Year holiday period, the average occupancy rate reached 97.4%, the total reception was about 37,000 person-times, and the business volume exceeded the pre-pandemic level.

Regarding the Health segment, as the COMIRNATY® BNT162b2 vaccine and COMIRNATY® bivalent vaccine was officially registered as a drug/product (biological product) in Hong Kong SAR and was approved as a regular imported vaccine in Macao SAR, Mainland Chinese residents visiting Hong Kong SAR and Macao SAR to receive COMIRNATY® vaccination has recently attracted great attention, the number of inquiries and appointments have increased significantly during the Spring Festival holiday. As regards Azvudine, the oral medication for COVID-19, it is now included in the medical insurance scheme in 31 provinces, autonomous regions, and direct-administered municipalities across the country and is available in primary healthcare institutions in many provinces. The accessibility of Azvudine has been greatly enhanced. In addition, in the global consumer market, Fosun's 48 overseas brands in the Health, Happiness, and Wealth segments are also developing steadily and gradually recovering in their respective fields.

The robust recovery and steady development of various businesses of Fosun signal an upward development trend. With the strong support from the government, the optimization of epidemic prevention and control measures, and the consumption recovery, Fosun, which is financially stable and has abundant cash flow, has ushered in a new growth point. As HSBC mentioned in the report, 'The worst is now behind Fosun and 2023 is looking better.'

Hashtag: #Fosun

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


Posted by : Media Outreach, Jenny
Viewed 0 times
PR Category : Others
Posted on : Thursday, February 2, 2023  11:00:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of
Email this article Print this article

Share this article with your friends and followers
Back to Media OutReach

Related Stories

Most Viewed Press Release posted in the last 7 days
For Everyone that Loves like a Mother [9758-Views]
A New Retail Concept by Hind Al Oud in Bawabat Al Sharq Mall [6244-Views]
Clive Christian | Town & Country - Immortalised in 1925, Reimagined for a New Era [6134-Views]
The Face Shop - Al Wahda Awarded Best Service Performance branch at Dubai Service Excellen... [5744-Views]
UAE becomes Ayala Land's Fastest Growing International Market with 157% Revenue Growth in ... [5519-Views]
Check Out Olivanna's Pregnancy Skincare Set [5400-Views]
This Ramadan, Create a Soft Makeup Look with essence [5240-Views]
The Islamic Affairs & Charitable Activities Department & Dubai Sports Council Launch “A St... [4908-Views]
Dubai Business Women Council Holds Its Board Members Meeting to Discuss Upcoming Projects ... [4772-Views]
Dubai: Price ‘Lock' announced for 70+ Essential items at Major Retailer [4752-Views]
Sikka Art and Design Reflects on Another Great Year [4596-Views]
Malabar Gold & Diamonds Opens International Hub in Dubai Gold Souk [4551-Views]
Dubai Science Park Launches Awareness Campaign for Colon Cancer, Second Most Common Cause ... [4383-Views]
Create a Simple and Chic Look for Ramadan with CATRICE [4326-Views]
Coinciding with the Social Responsibility Day in the Kingdom [4309-Views]
Le Meridien Fairway Blends Food and Fragrance for a Unique Breakfast Pairing in Collaborat... [4215-Views]
VFS Global announces extended Ramadan Timings in the UAE [3985-Views]
Testament to its Success Evolution, MBRU Granted Four More Years of Full Institutional Acc... [3862-Views]
Aldar Education's West Yas Academy Stays Ahead of the Game and Launches Lenovo Esports Hub [3809-Views]
GEMS Education Launches Free Youth Accelerator Programme in support of Student Entrepreneu... [3628-Views]
Michigan Ross Announces Winners of its GCC Women's Empowerment and Leadership in Sustainab... [3530-Views]
34,000 Visitors to 2nd Season of Farmers' Souq Initiative [3473-Views]
Nominate a ‘Champion of Ramadan' to Win with Carrefour [3432-Views]
Al-Futtaim ACE Launches its Ramadan 2023 Collection [3407-Views]
Novak Djokovic Hails Dubai's ‘Champion Mentality', says his ‘Second Home' City is Top Glob... [3391-Views]
RSS Facebook Twitter LinkedDin on Instagram
Top Sections
Top Stories