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

Good value average dividend payer.

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

0.4%

656

0.9%

HK Industrials

0.9%

HK Market


1 Year Return

-18.0%

656

-12.0%

HK Industrials

0.6%

HK Market

Return vs Industry: 656 underperformed the Hong Kong Industrials industry which returned -12% over the past year.

Return vs Market: 656 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

656IndustryMarket
7 Day0.4%0.9%0.9%
30 Day-4.0%0.6%0.5%
90 Day-6.0%-5.1%-4.3%
1 Year-13.9%-18.0%-8.0%-12.0%4.2%0.6%
3 Year-5.2%-13.0%-6.0%-15.7%15.6%4.0%
5 Year26.0%12.9%2.2%-29.9%20.0%-0.08%

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?

2.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 656 (HK$10.04) is trading below our estimate of fair value (HK$10.31)

Significantly Below Fair Value: 656 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: 656 is good value based on its PE Ratio (5.5x) 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 (0.7x) compared to the HK Industrials industry average (0.6x).


Next Steps

Future Growth

How is Fosun International forecast to perform in the next 1 to 3 years based on estimates from 9 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 (2%).

Earnings vs Market: 656's earnings (6.6% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

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

Revenue vs Market: 656's revenue (12.2% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 656's revenue (12.2% 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 (11.9%).


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

Earnings Trend: 656's earnings have grown by 17.2% 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 (-0.02%) over the past year, making it difficult to compare to the Industrials industry average (-0.02%).


Return on Equity

High ROE: 656's Return on Equity (11.7%) is considered low.


Return on Assets

ROA vs Industry: 656's Return on Assets is below or equal to the Industrials industry average last year.


Return on Capital Employed

ROCE Improving: 656's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Fosun International's financial position?


Financial Position Analysis

Short Term Liabilities: 656's short term assets (CN¥272.1B) exceeds its short term liabilities (CN¥246.5B)

Long Term Liabilities: 656's short term assets (272.1B) exceeds its long term liabilities (265.2B)


Debt to Equity History and Analysis

Debt Level: 656's debt to equity ratio (114.9%) is considered high

Reducing Debt: 656's debt to equity ratio has reduced from 135.1% to 114.9% over the past 5 years.

Debt Coverage: 656's debt is not well covered by operating cash flow (5.5%).

Interest Coverage: 656's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

Inventory Level: 656 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 656's debt is covered by short term assets (assets are 1.394000x debt).


Next Steps

Dividend

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

2.58%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.3%markettop25%6.3%industryaverage4.1%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 656's dividend (2.58%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 656's dividend (2.58%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

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 reasonably low payout ratio (26.5%), 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 (21.9% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Qunbin Wang (49yo)

2.6yrs

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

Compensation vs. Market: Qunbin's total compensation ($USD1.46M) is about average for companies of similar size in the Hong Kong market ($USD806.88K).

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


Management Age and Tenure

2.6yrs

Average Tenure

47.5yo

Average Age

Experienced Management: 656's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

49.5yo

Average Age

Experienced Board: 656's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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: 24.9yrs
    • Compensation: CN¥10.79m
  • Qunbin Wang (49yo)

    CEO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥10.36m
  • Xuetang Qin (56yo)

    Senior VP & Executive Director

    • Tenure: 24.8yrs
    • Compensation: CN¥19.59m
  • Qiyu Chen (47yo)

    Co-President & Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥24.85m
  • Xiaoliang Xu (46yo)

    Co-President & Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥24.89m
  • Donghui Pan (49yo)

    Senior Vice President

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

    Senior VP & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥16.72m
  • Patrick Zhong (48yo)

    Head of Global Investments

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

    Chief Growth Officer

    • Tenure: 2.6yrs
    • Compensation: CN¥16.71m
  • Linnan Xue (46yo)

    Chief Financial Officer

    • Tenure: 0.5yrs

Board Members

  • Sheng Man Zhang (62yo)

    Independent Non-Executive Director

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

    Chairman of the Board

    • Tenure: 24.9yrs
    • 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: 2.6yrs
    • Compensation: CN¥10.36m
  • Xuetang Qin (56yo)

    Senior VP & Executive Director

    • Tenure: 24.8yrs
    • Compensation: CN¥19.59m
  • Qiyu Chen (47yo)

    Co-President & Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥24.85m
  • Xiaoliang Xu (46yo)

    Co-President & Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥24.89m
  • Alex Gong (44yo)

    Senior VP & Executive Director

    • Tenure: 2.6yrs
    • 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: 2.6yrs
    • 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$85.719b
  • 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 Analysis2019/10/20 12:40
End of Day Share Price2019/10/18 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.