SEHK:656

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential and slightly overvalued.

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

2.1%

656

-5.2%

HK Industrials

-2.8%

HK Market


1 Year Return

-12.0%

656

-32.9%

HK Industrials

0.7%

HK Market

Return vs Industry: 656 exceeded the Hong Kong Industrials industry which returned -33.1% over the past year.

Return vs Market: 656 underperformed the Hong Kong Market which returned -0.3% over the past year.


Shareholder returns

656IndustryMarket
7 Day2.1%-5.2%-2.8%
30 Day-2.9%-13.0%-5.6%
90 Day-12.8%-13.6%0.6%
1 Year-9.6%-12.0%-29.4%-32.9%4.7%0.7%
3 Year-43.3%-48.4%-42.5%-49.5%-6.2%-16.4%
5 Year-25.9%-34.7%-40.3%-50.3%22.7%2.0%

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?

7.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 656 (HK$8.68) is trading above our estimate of fair value (HK$5.22)

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


Price To Earnings Ratio

PE vs Industry: 656 is poor value based on its PE Ratio (7x) compared to the HK Industrials industry average (5.7x).

PE vs Market: 656 is good value based on its PE Ratio (7x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 656 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 656 is overvalued based on its PB Ratio (0.5x) 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?

29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 656's forecast earnings growth (29.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 656's earnings (29.1% per year) are forecast to grow faster than the Hong Kong market (22.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 656's revenue (14.5% per year) is forecast to grow faster than the Hong Kong market (13.2% per year).

High Growth Revenue: 656's revenue (14.5% 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 (10.8%).


Next Steps

Past Performance

How has Fosun International performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 656 has a large one-off gain of CN¥13.0B impacting its June 30 2020 financial results.

Growing Profit Margin: 656's current net profit margins (6.7%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: 656's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: 656's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 656 had negative earnings growth (-35%) over the past year, making it difficult to compare to the Industrials industry average (-26.8%).


Return on Equity

High ROE: 656's Return on Equity (6.9%) 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¥306.6B) exceed its short term liabilities (CN¥305.0B).

Long Term Liabilities: 656's short term assets (CN¥306.6B) exceed its long term liabilities (CN¥263.5B).


Debt to Equity History and Analysis

Debt Level: 656's debt to equity ratio (126.3%) is considered high.

Reducing Debt: 656's debt to equity ratio has increased from 103.2% to 126.3% over the past 5 years.

Debt Coverage: 656's debt is not well covered by operating cash flow (3.5%).

Interest Coverage: 656's interest payments on its debt are not well covered by EBIT (0.3x coverage).


Balance Sheet


Next Steps

Dividend

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

4.47%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 656's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 656's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 656's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 656's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 656 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 656's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Qiyu Chen (48 yo)

0.58

Tenure

CN¥25,660,000

Compensation

Mr. Qiyu Chen serves 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 Partn ...


CEO Compensation Analysis

Compensation vs Market: Qiyu's total compensation ($USD3.78M) is above average for companies of similar size in the Hong Kong market ($USD635.82K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Qunbin Wang
Executive Co-Chairman0.58yrCN¥9.56mno data
Guangchang Guo
Executive Chairman0.58yrCN¥9.96mno data
Qiyu Chen
Co-CEO & Executive Director0.58yrCN¥25.66m0.052%
CN¥ 38.7m
Xiaoliang Xu
Co-CEO & Executive Director5.17yrsCN¥26.31m0.024%
CN¥ 17.5m
Ping Gong
Senior VP3.5yrsCN¥17.54m0.0044%
CN¥ 3.2m
Xuetang Qin
Senior VP & Executive Director25.67yrsCN¥19.20m0.057%
CN¥ 41.9m
Shunjiang Qian
Co-Chief Financial Officer0.42yrno datano data
Houlin Zhang
Senior VP & Co-Chief Financial Officerno datano datano data
Ligang Zhang
Co-CFO & GM of Financial Management Department0.58yrno datano data
Bin Tang
Chief Investment Officerno datano datano data
Haifeng Li
Senior VP & Chief Communications Officerno datano datano data
Donghui Pan
Senior VP & Chief Human Resources Officerno datano datano data

0.6yrs

Average Tenure

50yo

Average Age

Experienced Management: 656's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Qunbin Wang
Executive Co-Chairman0.58yrCN¥9.56mno data
Guangchang Guo
Executive Chairman0.58yrCN¥9.96mno data
Qiyu Chen
Co-CEO & Executive Director0.58yrCN¥25.66m0.052%
CN¥ 38.7m
Xiaoliang Xu
Co-CEO & Executive Director5.17yrsCN¥26.31m0.024%
CN¥ 17.5m
Ping Gong
Senior VP3.5yrsCN¥17.54m0.0044%
CN¥ 3.2m
Xuetang Qin
Senior VP & Executive Director25.67yrsCN¥19.20m0.057%
CN¥ 41.9m
Yixin Huang
Chairman of Nanjing Iron & Steel Group Corp & Nanjing Iron & Steel Co Ltdno datano datano data
Shengman Zhang
Independent Non-Executive Director13.75yrsCN¥871.00k0.0082%
CN¥ 6.0m
David T. Zhang
Independent Non-Executive Director8.25yrsCN¥871.00k0.00053%
CN¥ 390.7k
Kai-Fu Lee
Independent Non-Executive Director3.5yrsCN¥861.00kno data
Huaqiao Zhang
Independent Non-Executive Director8.5yrsCN¥871.00k0.0041%
CN¥ 3.0m
Shucui Chen
Non-Executive Director0.75yrno datano data

5.2yrs

Average Tenure

54yo

Average Age

Experienced Board: 656's board of directors are considered experienced (5.2 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$73.719b
  • Shares outstanding: 8.49b
  • 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 Inve ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/23 19:31
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
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.