FOSUN INTL(00656) 开源证券·2024-06-04 02:31Investment Rating - The investment rating for Fosun International is maintained as "Buy" [2] Core Views - S&P has maintained Fosun International's existing BB- rating with a stable outlook, indicating a positive overall tone [2] - The company achieved over 25 billion RMB in asset sales in 2023, reducing approximately 9 billion RMB in holding company debt, bringing total debt down to 89 billion RMB [2] - The expectation is that Fosun Group will continue to reduce debt at a rate of about 10 billion RMB annually over the next 2-3 years [2] - The report maintains profit forecasts, projecting net profit attributable to shareholders for 2024-2026 to be 4.09 billion, 5.5 billion, and 7.12 billion RMB respectively, with year-on-year growth rates of 196.8%, 34.4%, and 29.5% [2] - The current stock price corresponds to a PE ratio of 9.0, 6.7, and 5.2 for the years 2024, 2025, and 2026 respectively, indicating a robust growth outlook [2] Financial Summary and Valuation Metrics - Revenue (in million RMB) is projected to grow from 198,200 in 2023 to 227,396 in 2024, reflecting a year-on-year increase of 14.7% [3] - Net profit is expected to rise significantly from 1,379 million RMB in 2023 to 4,093 million RMB in 2024, with a year-on-year growth of 196.8% [3] - Gross margin is projected to remain stable at around 42.8% from 2024 onwards [3] - The report indicates an increase in overseas revenue contribution, which reached 45% in 2023 [2] - The company has maintained a strong focus on its core business areas, particularly in consumption and technology innovation, with significant investments in these sectors [2] Market Position and Strategic Initiatives - Fosun International has established a global presence across over 35 countries and regions, with a focus on deepening its industrial layout [2] - The company is actively pursuing asset disposals, with an expected cash inflow of 15 billion RMB from asset disposals in 2024 [2] - The report highlights the strategic cooperation agreement signed between Shenzhen and Shanghai Fosun High Technology to enhance collaboration in biomedicine, cultural tourism, and fashion consumption [2]