Report Industry Investment Rating - Not provided Core Viewpoints - The secondary IG market in Japan faced pressure due to heavy supply, with new issues widening and perpetuals under pressure. Chinese IG also widened, while some Chinese property and Macau gaming bonds showed mixed performance. Fosun's new bond issuance and tender offer are part of its debt management, and its credit profile is improving [2][8][11] Summary by Relevant Catalogs Trading Desk Comments - Yesterday, there were 6 Japanese and 1 Indian bond in the IG new issuance pipeline, pressuring the Japanese secondary IG market. New issues like JERA/HOKKEL/MITSCO widened 2 - 4bps, and perpetuals were pressured by the bear - steepening USD yield curve. Japanese insurance hybrids/AT1s and Yankee AT1s/insurance hybrids declined. China IG widened 2 - 4bps, with better selling on TMT names. Some bonds like FOSUNI 26 - 28s and DALWAN 11 02/13/26 rose. In Chinese properties and Macau gaming, bonds had mixed performance. TW lifers tightened, Korea IG widened, and SEA space had various movements [2] - This morning, new bonds like MUFG 31 - 36/MUFG 6.35 Perp had different price changes. FOSUNI 6.8 09/09/29 was 0.3pt higher, and ADANEM 30 - 31s were 0.2 - 0.5pt higher [3] - In the LGFV space, there was a mixed two - way session with more selling, and bonds repriced 30 - 50bps wider from YTD tights [4] - The top performers included BIMLVN 7 3/8 05/07/26 with a 1.3 price increase, while top underperformers like GLPSP 4 1/2 PERP dropped 2.3 [5] Macro News Recap - On Tuesday, S&P (-0.69%), Dow (-0.55%), and Nasdaq (-0.82%) were lower. US Aug'25 S&P Global Manufacturing PMI was 53.0 (lower than expected), and ISM Manufacturing PMI/Prices were 48.7/63.7 (lower than expected). UST yield was higher, with 2/5/10/30 - year yields at 3.66%/3.74%/4.28%/4.97% [7] Desk Analyst Comments - Analysts are neutral on the new FOSUNI 6.8 09/09/29. Fosun priced the bond at 6.8% (vs IPT of 7.2%), with an issue size capped at USD400mn on an order book over USD2.5bn. The bond has a 4 - year tenor with a 2.5 - year non - call period. Analysts view its valuation as fair, and for Chinese HY, they prefer BTSDF 9.125 07/24/28 and EHICARs [8] - Fosun announced a tender offer for USD500mn FOSUNI 5 05/18/26, to be financed by the new bond issue and/or internal resources. The offer expires on 10 Sep'25 4pm (GMT) and will be settled around 16 Sep'25. Participation in the tender offer doesn't provide priority allocation for the new bond [9] - The new issuance and tender offer are part of Fosun's debt maturity management. In 2025, Fosun has repurchased bonds via tender offers and called the remaining amount. As of Jun'25, it held RMB16bn cash and RMB89.2bn total debt at holdco level, with a plan to deleverage further [10] - Fosun's credit profile is improving due to asset disposals, debt maturity management, and better access to funding channels onshore and offshore. It has issued bonds and raised loans in 2024 - 2025 [11] Offshore Asia New Issues (Priced) - Multiple issuers including Arab National Bank, Ares Capital, Credit Agricole, etc., have priced new bonds with different sizes, tenors, coupons, and issue ratings [12] Offshore Asia New Issues (Pipeline) - Fubon Life, PTT Global Chemical, and Sumitomo Life Insurance have bonds in the issuance pipeline with specified tenors, pricing, and issue ratings [13] News and Market Color - Yesterday, 37 onshore credit bonds were issued with an amount of RMB25bn. Month - to - date, 99 credit bonds were issued, raising RMB68bn, a 10.8% yoy decrease. NIO's 2Q25 revenue rose 9% yoy to RMB19bn. India regulator approved SMBC's acquisition of 20% shareholding in YES Bank, and the US revoked TSMC waiver for shipping chipmaking tools to China [14]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年8月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 復星國際有限公司 | | | 呈交日期: | 2025年9月3日 | | | I. 法定/註冊股本變動 | 不適用 | | FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00656 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 8,166,558,124 | | 0 | | 8,166,558,124 | | 增加 / 減少 (-) | | | 0 | | ...

Group 1 - Recently, Fosun International successfully issued a total of $400 million in senior unsecured bonds on September 3, showcasing its financing capability in the international market [1][3] - The bonds have a term of 4NC2.5 and a coupon rate set at 6.8%, which is attractive to investors [3] - Standard & Poor's assigned a BB- issuer rating to Fosun International with a stable outlook, enhancing confidence in the bond issuance [3] Group 2 - The funds raised will primarily be used for refinancing part of the existing offshore debt, including payments related to any tender offers [3] - Additional funds will be allocated for the company's working capital and general corporate purposes to support Fosun International's ongoing development [3]

Summary of Key Points Overall Market Trends - The overall market shows a rebound in institutional attention, particularly in the mechanical, pharmaceutical, and automotive sectors [5][6][7] - The Shanghai and Shenzhen 300 indices have shown varied performance across different sectors, with banking and utilities leading in gains [1][2] Industry Insights - The pharmaceutical sector is witnessing significant advancements in the small molecule GLP-1RA space, with Orforglipron leading globally and domestic pipelines gaining value [28][30][31] - The mechanical industry is focusing on unmanned intelligent equipment, highlighted by the upcoming military parade showcasing new technologies [35][36][38] Company-Specific Updates - **Old Phoenix (老凤祥)**: The company reported a 10.5% year-on-year increase in Q2 revenue, with a focus on brand rejuvenation and product upgrades [42][44] - **Federation Pharmaceutical (联邦制药)**: The company achieved a 4.61% increase in revenue for H1 2025, with significant growth in its formulation segment [46][48] - **Giant Star Agriculture (巨星农牧)**: The company experienced a 66.49% increase in revenue for H1 2025, driven by a substantial rise in pig sales [51][52] - **China Shenhua (中国神华)**: The company reported a decline in revenue but maintained strong integrated operations, with a focus on asset injection and sustainable dividends [56][58] Investment Recommendations - The small molecule GLP-1RA market is expected to provide new growth opportunities, with several domestic companies positioned to benefit from international expansion [33] - Companies involved in the mechanical sector, particularly those developing robotic technologies, are recommended for investment due to their innovative potential [39][40]

Investment Rating - The investment rating for Fosun International (00656.HK) is "Buy" (maintained) [1] Core Views - The report highlights that Fosun International's revenue for H1 2025 was 87.3 billion HKD, a year-on-year decrease of 10.8%, with a net profit attributable to shareholders of 6.6 billion HKD, down 8.2% year-on-year. The operational profit was 31.5 billion HKD, reflecting a decline of 9.3% primarily due to the performance drop in the Happy segment, particularly from Yuyuan [5] - The report maintains profit forecasts, expecting net profits attributable to shareholders to be 1.23 billion HKD, 1.63 billion HKD, and 1.9 billion HKD for 2025-2027, with year-on-year growth of 32.4% and 17% respectively. The EPS is projected to remain at 0.2 HKD for these years, with the current stock price corresponding to P/E ratios of 32.1, 24.3, and 20.7 times [5] - The report emphasizes the group's focus on asset quality improvement and the deepening of global operations, maintaining a "Buy" rating [5] Financial Summary and Valuation Indicators - Revenue for 2023 is reported at 198.2 billion HKD, with a projected decrease to 192.1 billion HKD in 2024, followed by an increase to 201.7 billion HKD in 2025. The net profit is expected to recover from a loss of 4.35 billion HKD in 2024 to 1.23 billion HKD in 2025 [8] - The gross margin is projected to be 42.8% in 2025, with a net margin of 0.6%. The return on equity (ROE) is expected to be 0.7% in 2025, with an EPS of 0.2 HKD [8] - The report indicates a stable credit rating for the group, with the average debt cost decreasing to 5.3% in H1 2025, down 50 basis points year-on-year [5]

Investment Rating - The investment rating for Fosun International is "Buy" [1] Core Views - Fosun International's core industries are operating steadily, and the RWA ecological layout is progressing steadily. The company reported a total revenue of 87.3 billion yuan in the first half of 2025, a year-on-year decrease of 10.8% [2]. - The company is focusing on local and international dual-driven strategies in its insurance segment, with total premium income of 3.27 billion euros in the first half of 2025, an increase of 16.5% year-on-year [3]. - The company has made significant advancements in its RWA ecological layout, obtaining licenses for virtual assets and launching a leading RWA platform [4][5]. - Fosun Pharma's innovative drug revenue is steadily growing, with a revenue of over 4.3 billion yuan, a year-on-year increase of 14.26% [6][7]. - The performance of core subsidiary Yuyuan Inc. showed improvement in Q2, with revenue of 19.11 billion yuan, a year-on-year decrease of 30.68% [8]. Summary by Sections Financial Performance - In the first half of 2025, Fosun International's total revenue was 87.3 billion yuan, with a net profit of 660 million yuan, a year-on-year decrease of 8.2% [2]. - The company adjusted its revenue forecasts for 2025-2026 to 96 billion and 103.4 billion yuan, respectively, with net profit estimates of 730 million and 930 million yuan [9]. Insurance Segment - Fosun Portugal Insurance's total premium income reached 3.27 billion euros, with a market share of 29.3% in Portugal [3]. - The international business of Fosun Portugal Insurance reported a premium income of 920 million euros, a year-on-year increase of 4.3% [3]. RWA Ecological Layout - The company has obtained licenses for virtual asset trading and investment management, enhancing its capabilities in the RWA sector [4][5]. Pharmaceutical Segment - Fosun Pharma's revenue was 19.426 billion yuan, with a net profit of 1.702 billion yuan, a year-on-year increase of 38.94% [6][7]. Subsidiary Performance - Yuyuan Inc. reported a revenue of 19.112 billion yuan in Q2, with a significant improvement in operational cash flow [8].

Group 1 - Citigroup raised the target price for Fosun International to HKD 6.5, reiterating a "Buy" rating [1]

Core Viewpoint - Fosun International emphasizes a clear strategic focus on core businesses, deepening global layout, and increasing innovation investment to establish a solid foundation for future development [1] Group 1: Strategic Developments - The management highlighted the strategy of "progress and retreat," optimizing asset structure, and has completed the sale of 99.743% of its stake in the German private bank HAL by June 30, 2025 [1] - Citigroup raised the target price for Fosun from HKD 5.86 to HKD 6.50, citing a significant discount of 72% to NAV, indicating potential for valuation recovery [1][2] - The company has seen a reduction of over 30 basis points in financing costs compared to the end of 2024, supported by the expansion of overseas dollar bonds and domestic debt issuance [1][2] Group 2: Financial Performance - Fosun's core industries, such as innovative pharmaceuticals, have achieved multiple breakthroughs, with the innovative drug H achieving global sales revenue of RMB 5.977 billion [2] - The overseas revenue proportion reached 53%, an increase of 6.6 percentage points year-on-year, reflecting the effectiveness of global business layout [2] - The insurance segment reported revenue of RMB 20.89 billion in the first half of the year, with significant growth in the Portuguese insurance market and a 25.1% increase in Dingrui Reinsurance's gross premium income [2] Group 3: Technological Innovations - Fosun continues to innovate in the fintech sector, launching the FinRWA Platform (FRP) and actively promoting asset tokenization projects [3] - The company has upgraded its licenses for securities and asset management, with steady progress in virtual assets and RWA platform development [3] Group 4: Market Sentiment - Domestic and international brokerages have expressed optimism about Fosun's future prospects and long-term value, with a consensus on the company's strategic direction and asset optimization efforts [1][3]

Core Insights - Fosun International has achieved significant breakthroughs across multiple business segments in the first half of 2025, focusing on deepening its industry advantages and accelerating global market penetration [1] - The company's total revenue reached 87.28 billion yuan, with overseas revenue accounting for 53% at 46.67 billion yuan [1][3] - The core businesses of healthcare, cultural tourism, and financial insurance have shown steady growth, contributing to the overall performance [1][2] Financial Performance - Fosun International's four core subsidiaries generated a total revenue of 63.61 billion yuan, representing 73% of the group's total revenue [2] - Fosun Pharma reported a net profit of 1.7 billion yuan, a year-on-year increase of 38.96% [2] - The cultural tourism segment achieved a record revenue of 9.53 billion yuan, with an adjusted net profit growth of 42% [2] Strategic Focus - The company is committed to a strategy of streamlining operations and focusing on high-growth core industries while divesting non-core assets [2] - Innovation remains a core capability, with R&D investments reaching 3.6 billion yuan, supporting a global innovation ecosystem [2][3] - The financial strategy emphasizes resource concentration on potential industry leaders and aims to reduce interest-bearing debt to below 60 billion yuan [3] Global Expansion - Fosun International's overseas business revenue has increased, with international operations contributing significantly to overall income [3][4] - The company is expanding its global footprint through various projects, including lithium mining and energy initiatives in Africa and Southeast Asia [4][5] - Club Med's global performance reached a new high, with revenue of 9.25 billion yuan, reflecting strong demand for vacation services [5] Technological Integration - The company is embracing AI technology to enhance business innovation and operational efficiency, particularly in the cultural tourism sector [6] - A partnership with Alibaba Cloud aims to develop an AI-driven tourism assistant, expected to launch in late September 2025 [6]

Core Viewpoint - Fosun International emphasizes a clear strategic focus on core businesses, deepening global layout, and increasing innovation investment to establish a solid foundation for future development [1] Group 1: Strategic Developments - The management highlighted the strategy of "progress and retreat," optimizing asset structure, and has completed the sale of 99.743% of its stake in the German private bank HAL, while retaining the asset service business HAFS [1] - Citigroup raised the target price for Fosun from HKD 5.86 to HKD 6.50, citing a significant discount of 72% to NAV, indicating potential for valuation recovery [1][2] - The company has seen a reduction of over 30 basis points in financing costs compared to the end of 2024, aided by the expansion of overseas dollar bonds and domestic debt issuance [1][2] Group 2: Financial Performance - Fosun's core industries, such as innovative pharmaceuticals, have achieved multiple breakthroughs, with the innovative drug H achieving global sales revenue of RMB 597.7 million [2] - The overseas revenue proportion reached 53%, an increase of 6.6 percentage points year-on-year, reflecting the effectiveness of global business layout [2] - The insurance segment reported revenue of RMB 20.89 billion in the first half of the year, with significant growth in the reinsurance sector, which saw a 25.1% increase in gross premium income [2] Group 3: Innovation and Technology - Fosun continues to advance in the fintech sector, launching the FinRWA Platform (FRP) and actively promoting asset tokenization projects [3] - The company has upgraded its licenses for securities and asset management, with steady progress in virtual assets and RWA platform development [3] Group 4: Market Sentiment - Domestic and international brokerages have expressed optimism about Fosun's future prospects and long-term value, reinforcing the positive market sentiment towards the company's strategic direction [1][3]