China's Fosun International H1 profit soars amid insurance segment growth
China's Fosun International H1 profit soars amid insurance segment growth
Overview
China conglomerate's H1 revenue was broadly flat yr/yr at RMB86.96 bln
Net profit attributable to owners rose 160% yr/yr to RMB1.72 bln
Profit rebound driven by strong insurance, asset management and disposal of non-core assets
Outlook
Company plans to continue disposal of non-core assets to strengthen liquidity and reduce debt
Fosun aims to accelerate overseas expansion, especially in Southeast Asia
Company intends to enhance quality and efficiency of global operations across multiple regions
Result Drivers
INSURANCE GROWTH - Strong operating profit growth in the insurance segment, up 40% yr/yr, contributed to profit rebound
ASSET MANAGEMENT - Asset management segment saw improved results, supporting higher profits
NON-CORE ASSET DISPOSALS - Disposal of non-core assets resulted in deconsolidation of certain subsidiaries and supported profit growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| RMB 86.96 bln |
|
H1 Net Income Attributable |
| RMB 1.72 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer goods conglomerates peer group is "buy"
Wall Street's median 12-month price target for Fosun International Ltd is HK$5.60, about 3.4% above its August 27 closing price of HK$5.42
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
Aug 26 - China's New China Life Insurance H1 profit jumps 54% as margins rise
Aug 25 - Hong Kong's China Taiping profit jumps 90% on life insurance business growth
Aug 26 - Asia Financial Holdings H1 profit rises on insurance revenue growth, lifts dividend
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)