Citi and Industrial Securities have reiterated their “Buy” and “Overweight” ratings respectively, expressing their bullish views on Fosun’s “business streamlining, and strategic advancements and exits” strategy and its proactive asset structure optimization. Previously, Citi renewed coverage of Fosun International with a “Buy” rating on 23 July. Following the recent results presentation, Citi issued another research report on Fosun International, reaffirming its “Buy” rating and raising the target price from HK$5.86 to HK$6.50.
Citi notes that Fosun is accelerating its “strategic advancements and exits” strategy. By the end of June 2025, Fosun completed the sale of 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. The report highlights that Fosun’s share price is currently trading at a 72% discount to its net asset value (NAV). Reflecting the market value of listed investments in the NAV, Citi expects a potential valuation recovery for Fosun International and has therefore raised its target price. Industrial Securities also acknowledges Fosun’s ongoing asset portfolio optimization and clear strategic direction, noting that the Group expanded offshore USD bonds, organized offshore syndicated loan, and issued domestic bonds in the first half of the year, resulting in a financing cost reduction of over 30 basis points compared to the end of 2024.
Both Citi and Industrial Securities highlight that Fosun’s core industries, such as innovative drugs, have made significant breakthroughs, while its cultural tourism business, Club Med, has achieved record-high results and insurance operations have showed steady growth. Fosun’s Health segment, particularly biopharmaceuticals, performed exceptionally well, with multiple innovative drugs of Henlius achieving major breakthroughs. HANSIZHUANG (serplulimab), the world’s first anti-PD-1 monoclonal antibody (mAb) approved for first-line treatment of small cell lung cancer (SCLC), recorded a global sales revenue of RMB597.7 million. To date, HANSIZHUANG has been successfully approved for marketing in nearly 40 countries and regions, covering nearly half of the world’s population. HLX43, the world’s first PD-L1-targeting antibody-drug conjugate (ADC) to enter Phase II clinical trials, is undergoing clinical studies for solid tumors such as non-small cell lung cancer (NSCLC) and thymic carcinoma in countries including China, the US, Japan, and Australia. Meanwhile, HLX22, another innovative drug, was granted Orphan Drug Designation (ODD) by the European Commission (EC) for the treatment of gastric cancer, marking it as the first anti-HER2-targeted therapy for gastric cancer to receive ODD approval from both the EU and the US.
Industrial Securities also points out that Fosun’s overseas revenue accounted for 53%, representing an increase of 6.6 percentage points year-on-year, demonstrating the effectiveness of its globalization strategy. Club Med’s global performance once again reached a record high, with business volume amounting to RMB9.25 billion in the first half of 2025. The insurance segment also delivered solid performance, with the Group’s insurance business generating revenue of RMB20.89 billion in the first half of 2025. Fosun Insurance Portugal recorded overseas gross written premiums (GWP) of EUR924 million and received an “A” rating from S&P, while Peak Reinsurance achieved GWP of US$1,061 million, reflecting a year-on-year increase of 25.1%, demonstrating strong growth momentum.
In addition, Fosun has continued to drive innovation in financial technology. Finloop, independently incubated by Fosun Wealth, has launched the FinRWA Platform (FRP), a comprehensive one-stop solution for Real World Assets (RWA) technology. The company is actively advancing asset tokenization projects. Fosun International Securities Limited and Fosun International Asset Management Limited have respectively obtained upgraded Type 1 and Type 9 licenses from the Hong Kong Securities and Futures Commission (HKSFC), with steady progress in building virtual asset and RWA platforms.
Overall, by focusing on its core advantageous industries, optimizing capital structure, and deepening its global operations, Fosun has earned unanimous support from domestic and foreign securities firms, with the market highly optimistic about its future growth prospects.
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