SEHK:656

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Fosun International Limited operates in health, happiness, and wealth sectors in Mainland China, Portugal, and internationally.


Snowflake Analysis

Average dividend payer and fair value.

Share Price & News

How has Fosun International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 656 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

656

3.9%

HK Industrials

4.1%

HK Market


1 Year Return

-3.6%

656

-29.1%

HK Industrials

-4.7%

HK Market

Return vs Industry: 656 exceeded the Hong Kong Industrials industry which returned -29.1% over the past year.

Return vs Market: 656 exceeded the Hong Kong Market which returned -4.7% over the past year.


Shareholder returns

656IndustryMarket
7 Day4.5%3.9%4.1%
30 Day-3.6%-3.1%4.2%
90 Day18.8%-0.4%11.7%
1 Year0.2%-3.6%-25.3%-29.1%-1.2%-4.7%
3 Year-5.7%-14.2%-27.2%-36.0%7.7%-3.5%
5 Year-32.5%-40.5%-35.0%-45.5%7.2%-10.1%

Price Volatility Vs. Market

How volatile is Fosun International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fosun International undervalued compared to its fair value and its price relative to the market?

5.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 656 (HK$10.12) is trading above our estimate of fair value (HK$6.31)

Significantly Below Fair Value: 656 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 656 is good value based on its PE Ratio (5.3x) compared to the Industrials industry average (5.5x).

PE vs Market: 656 is good value based on its PE Ratio (5.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 656 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 656 is overvalued based on its PB Ratio (0.6x) compared to the HK Industrials industry average (0.4x).


Next Steps

Future Growth

How is Fosun International forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 656's forecast earnings growth (6.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 656's earnings (6.6% per year) are forecast to grow slower than the Hong Kong market (17.7% per year).

High Growth Earnings: 656's earnings are forecast to grow, but not significantly.

Revenue vs Market: 656's revenue (5.8% per year) is forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Revenue: 656's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 656's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Fosun International performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 656 has a large one-off gain of CN¥18.1B impacting its December 31 2009 financial results.

Growing Profit Margin: 656's current net profit margins (10.3%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: 656's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: 656's earnings growth over the past year (10.4%) is below its 5-year average (14.8% per year).

Earnings vs Industry: 656 earnings growth over the past year (10.4%) exceeded the Industrials industry 1.3%.


Return on Equity

High ROE: 656's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Fosun International's financial position?


Financial Position Analysis

Short Term Liabilities: 656's short term assets (CN¥279.7B) exceed its short term liabilities (CN¥268.4B).

Long Term Liabilities: 656's short term assets (CN¥279.7B) exceed its long term liabilities (CN¥266.4B).


Debt to Equity History and Analysis

Debt Level: 656's debt to equity ratio (116.4%) is considered high.

Reducing Debt: 656's debt to equity ratio has reduced from 128.8% to 116.4% over the past 5 years.

Debt Coverage: 656's debt is not well covered by operating cash flow (3.7%).

Interest Coverage: 656's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Fosun International current dividend yield, its reliability and sustainability?

3.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 656's dividend (3.94%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.35%).

High Dividend: 656's dividend (3.94%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.69%).


Stability and Growth of Payments

Stable Dividend: 656's dividend payments have been volatile in the past 10 years.

Growing Dividend: 656's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.6%), 656's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 656's dividends in 3 years are forecast to be well covered by earnings (26.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average management tenure


CEO

Qiyu Chen (48yo)

0.42

Tenure

CN¥25,660,000

Compensation

Mr. Qiyu Chen serves as as Chairman at InnoStar Venture. He has been served as Co-Chief Executive Officer at Fosun International Limited since February 21, 2020. Mr. Chen serves as Chairman and Managing Pa ...


CEO Compensation Analysis

Compensation vs Market: Qiyu's total compensation ($USD3.63M) is above average for companies of similar size in the Hong Kong market ($USD816.97K).

Compensation vs Earnings: Qiyu's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Qunbin Wang
Executive Co-Chairman0.42yrCN¥9.56mno data
Guangchang Guo
Executive Chairman0.42yrCN¥9.96mno data
Qiyu Chen
Co-CEO & Executive Director0.42yrCN¥25.66m0.052% CN¥45.1m
Xiaoliang Xu
Co-CEO & Executive Director5yrsCN¥26.31m0.024% CN¥20.4m
Ping Gong
Senior VP3.33yrsCN¥17.54m0.0043% CN¥3.7m
Xuetang Qin
Senior VP & Executive Director25.5yrsCN¥19.20m0.057% CN¥48.8m
Shunjiang Qian
Co-Chief Financial Officer0.25yrno datano data
Houlin Zhang
Senior VP & Co-Chief Financial Officerno datano datano data
Ligang Zhang
Co-CFO & GM of Financial Management Department0.42yrno datano data
Bin Tang
Chief Investment Officerno datano datano data

0.4yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 656's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Qunbin Wang
Executive Co-Chairman0.42yrCN¥9.56mno data
Guangchang Guo
Executive Chairman0.42yrCN¥9.96mno data
Qiyu Chen
Co-CEO & Executive Director0.42yrCN¥25.66m0.052% CN¥45.1m
Xiaoliang Xu
Co-CEO & Executive Director5yrsCN¥26.31m0.024% CN¥20.4m
Ping Gong
Senior VP3.33yrsCN¥17.54m0.0043% CN¥3.7m
Xuetang Qin
Senior VP & Executive Director25.5yrsCN¥19.20m0.057% CN¥48.8m
Yixin Huang
Chairman of Nanjing Iron & Steel Group Corp & Nanjing Iron & Steel Co Ltdno datano datano data
Shengman Zhang
Independent Non-Executive Director13.58yrsCN¥871.00k0.0082% CN¥7.0m
Fang Yao
Co-Chairman of the Board of Shanghai Fosun Pharmaceutical Groupno datano datano data
Huaqiao Zhang
Independent Non-Executive Director8.33yrsCN¥871.00k0.0041% CN¥3.5m

5.0yrs

Average Tenure

52yo

Average Age

Experienced Board: 656's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fosun International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fosun International Limited
  • Ticker: 656
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: HK$86.014b
  • Shares outstanding: 8.50b
  • Website: https://www.fosun.com

Number of Employees


Location

  • Fosun International Limited
  • Bund Finance Center
  • Tower S1
  • Shanghai
  • Shanghai Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
656SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2007
FNIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2007
FOSU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2007
656SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2007
656SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2007
FOSU.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Fosun International Limited operates in health, happiness, and wealth sectors in Mainland China, Portugal, and internationally. It operates in five segments: Health, Happiness, Insurance, Finance, and Investment. The Health segment engages in the research, development, manufacture, sale, and trading of pharmaceutical, biopharmaceutical, and health products; and provision of medical and health management services. The Happiness segment operates and invests in tourism and leisure, fashion consumer, and lifestyle industries. The Insurance segment operates in the insurance markets, including life, medical, illness, disability income, health care, and accident insurance. The Finance segment operates and invests in the banking and other financial businesses. The Investment segment invests in primary market and secondary markets, asset management companies, and other companies. The company is also engages in the property development, retail, reinsurance, beer production and distribution businesses; manufacture and sale of iron and steel products; and oil and gas exploration, and mining and ore processing activities. The company was founded in 1992 and is based in Shanghai, China. Fosun International Limited is a subsidiary of Fosun Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 12:38
End of Day Share Price2020/07/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.