FOSUN INTL(00656) 华西证券·2024-09-05 08:08Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 5.93, compared to the latest closing price of HKD 4.01 [2][7]. Core Insights - The company reported total revenue of HKD 97.8 billion for the first half of 2024, a year-on-year increase of 0.8%, with operational profit reaching HKD 3.47 billion, up 3% [3]. - The net profit attributable to shareholders was HKD 720 million, a decline of 47% compared to the same period last year, primarily due to one-time losses from the disposal of non-core assets [3]. - The company has optimized its asset-liability structure, reducing interest-bearing debt to HKD 85.8 billion, a decrease of HKD 3 billion from the end of the previous year, with a leverage ratio of 50.2% [3][5]. Revenue Performance - The company’s four major segments—health, happiness, wealth, and intelligent manufacturing—generated revenues of HKD 23.26 billion, HKD 43.17 billion, HKD 26.95 billion, and HKD 5.33 billion respectively, with year-on-year changes of -2.4%, +0.4%, +5.9%, and -2.4% [3]. - The net profit contributions from these segments were HKD 510 million, HKD 164 million, HKD 30 million, and HKD 45 million, reflecting year-on-year changes of +43%, -78.5%, -86.9%, and -61.8% [3]. Global Expansion and Asset Quality - The company’s four core subsidiaries—Yuyuan, Fosun Pharma, Fosun Portugal Insurance, and Fosun Tourism—accounted for 74% of total revenue, amounting to HKD 72.17 billion [4]. - The overseas revenue reached 47% of total revenue, marking a 4% increase year-on-year, indicating a robust global presence [4]. - Club Med, under Fosun Tourism, achieved record global revenue of HKD 8.894 billion, a 10.3% increase, with a 32% growth in the Asia-Pacific region [4]. Financial Health - Since 2022, the company has focused on asset disposals, exiting approximately HKD 60 billion in non-strategic and non-core assets over two years [5]. - In 2024, the company signed agreements for asset exits totaling HKD 15 billion, while also optimizing its asset portfolio through various means, including acquisitions [5]. - The average debt cost remained stable, with only a slight increase of 19 basis points compared to the end of 2023, despite rising financing costs in overseas markets [5]. Earnings Forecast - The company is expected to achieve revenues of HKD 229.9 billion, HKD 268.0 billion, and HKD 305.8 billion for 2024, 2025, and 2026 respectively, with net profits projected at HKD 1.5 billion, HKD 2.0 billion, and HKD 2.4 billion [6][8]. - The diluted EPS for the same period is forecasted to be HKD 0.18, HKD 0.24, and HKD 0.29, with corresponding P/E ratios of 24.96, 18.05, and 14.95 [7].