SEHK:656

Stock Analysis Report

Executive Summary

Fosun International Limited creates customer-to-maker ecosystems in health, happiness, and wealth sectors in Mainland China, Portugal, and internationally.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

3.3%

SEHK:656

3.3%

HK Industrials

2.5%

HK Market


1 Year Return

-20.7%

SEHK:656

-14.0%

HK Industrials

-3.9%

HK Market

656 underperformed the Industrials industry which returned -14% over the past year.

656 underperformed the Market in Hong Kong which returned -3.9% over the past year.


Share holder returns

656IndustryMarket
7 Day3.3%3.3%2.5%
30 Day15.5%10.1%7.6%
90 Day8.9%-2.9%0.8%
1 Year-16.7%-20.7%-10.2%-14.0%-0.4%-3.9%
3 Year-3.5%-11.4%-6.8%-16.2%19.6%7.6%
5 Year21.7%9.0%0.6%-30.8%17.7%-1.7%

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 based on future cash flows and its price relative to the stock market?

5.86x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Fosun International's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Fosun International's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Fosun International is good value based on earnings compared to the HK Industrials industry average.

Fosun International is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Fosun International is good value based on expected growth next year.


Price Based on Value of Assets

Fosun International is overvalued based on assets compared to the HK Industrials industry average.


Next Steps

Future Growth

How is Fosun International expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Fosun International's revenue is expected to grow by 13.3% yearly, however this is not considered high growth (20% yearly).

Fosun International's earnings are expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).

Fosun International's revenue growth is expected to exceed the Hong Kong market average.

Fosun International's earnings growth is positive but not above the Hong Kong market average.

Fosun International's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Fosun International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Fosun International performed over the past 5 years?

17.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Fosun International's year on year earnings growth rate has been positive over the past 5 years.

Fosun International's 1-year earnings growth is less than its 5-year average (-0% vs 17.2%)

Fosun International's earnings growth has not exceeded the HK Industrials industry average in the past year (-0% vs 5.1%).


Return on Equity

Fosun International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Fosun International used its assets less efficiently than the HK Industrials industry average last year based on Return on Assets.


Return on Capital Employed

Fosun International has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Fosun International's financial position?


Financial Position Analysis

Fosun International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Fosun International's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Fosun International's level of debt (114.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (135.1% vs 114.9% today).

Debt is not well covered by operating cash flow (6.8%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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

4.02%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Fosun International's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

Fosun International's dividend is below the markets top 25% of dividend payers in Hong Kong (6.06%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.8x coverage).


Next Steps

Management

What is the CEO of Fosun International's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Qunbin Wang (49yo)

2.5yrs

Tenure

CN¥10,359,000

Compensation

Mr. Qunbin Wang founded Fosun International Limited and also has been its Chief Executive Officer since March 28, 2017 and Executive Director since November 1994. Mr. Wang founded Fosun Group in November 1 ...


CEO Compensation Analysis

Qunbin's remuneration is higher than average for companies of similar size in Hong Kong.

Qunbin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

47.5yo

Average Age

The tenure for the Fosun International management team is about average.


Board Age and Tenure

8.5yrs

Average Tenure

49.5yo

Average Age

The tenure for the Fosun International board of directors is about average.


Insider Trading

More shares have been bought than sold by Fosun International individual insiders in the past 3 months.


Recent Insider Transactions

BuyCN¥495,00019 Jun 19
Sheng Man Zhang
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares50,000
Max PriceCN¥9.90
BuyCN¥1,000,00014 Jun 19
Sheng Man Zhang
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceCN¥10.00
BuyCN¥640,00028 May 19
Sheng Man Zhang
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares50,000
Max PriceCN¥12.80
BuyCN¥640,00028 May 19
Sheng Man Zhang
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares50,000
Max PriceCN¥12.80
BuyCN¥1,243,60030 Apr 19
Sheng Man Zhang
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceCN¥12.44
BuyCN¥263,60015 Apr 19
Sheng Man Zhang
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceCN¥13.18
BuyCN¥1,044,80015 Apr 19
Sheng Man Zhang
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares80,000
Max PriceCN¥13.06
BuyCN¥3,396,72131 Oct 18
Huaqiao Zhang
EntityIndividual
Shares300,000
Max PriceCN¥11.32
BuyCN¥1,158,00031 Oct 18
Ping Gong
EntityIndividual
Role
Member of the Board of Directors
Senior VP & Executive Director
Shares100,000
Max PriceCN¥11.58

Ownership Breakdown


Management Team

  • Guangchang Guo (52yo)

    Chairman of the Board

    • Tenure: 24.8yrs
    • Compensation: CN¥10.79m
  • Qunbin Wang (49yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥10.36m
  • Xuetang Qin (56yo)

    Senior VP & Executive Director

    • Tenure: 24.7yrs
    • Compensation: CN¥19.59m
  • Qiyu Chen (47yo)

    Co-President & Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥24.85m
  • Xiaoliang Xu (46yo)

    Co-President & Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥24.89m
  • Donghui Pan (49yo)

    Senior Vice President

    • Tenure: 0yrs
  • Alex Gong (44yo)

    Senior VP & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥16.72m
  • Patrick Zhong (48yo)

    Head of Global Investments

    • Tenure: 0yrs
  • Robin Wang (40yo)

    Chief Growth Officer

    • Tenure: 2.5yrs
    • Compensation: CN¥16.71m
  • Linnan Xue (46yo)

    Chief Financial Officer

    • Tenure: 0.4yrs

Board Members

  • Sheng Man Zhang (62yo)

    Independent Non-Executive Director

    • Tenure: 12.8yrs
  • Guangchang Guo (52yo)

    Chairman of the Board

    • Tenure: 24.8yrs
    • Compensation: CN¥10.79m
  • Fang Yao (50yo)

    Co-Chairman of the Board of Shanghai Fosun Pharmaceutical Group

    • Tenure: 0yrs
  • Qunbin Wang (49yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥10.36m
  • Xuetang Qin (56yo)

    Senior VP & Executive Director

    • Tenure: 24.7yrs
    • Compensation: CN¥19.59m
  • Qiyu Chen (47yo)

    Co-President & Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥24.85m
  • Xiaoliang Xu (46yo)

    Co-President & Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥24.89m
  • Alex Gong (44yo)

    Senior VP & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥16.72m
  • Yixin Huang (54yo)

    Chairman of Nanjing Iron & Steel Group Corp & Nanjing Iron & Steel Co Ltd

    • Tenure: 0yrs
  • Robin Wang (40yo)

    Chief Growth Officer

    • Tenure: 2.5yrs
    • Compensation: CN¥16.71m

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$91.748b
  • Shares outstanding: 8.54b
  • Website: https://www.fosun.com

Number of Employees


Location

  • Fosun International Limited
  • Bund Finance Center
  • Tower S1
  • Shanghai
  • 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 creates customer-to-maker ecosystems in health, happiness, and wealth sectors in Mainland China, Portugal, and internationally. It operates through Health Ecosystem, Happiness E ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 12:45
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.