In its research report published at the end of March, UBS was also optimistic about Fosun International's strategy of focusing on its core businesses, pointing out that in the future Fosun will continue to execute its disposal plans of exiting non-core assets and concentrate resources on sustainable, predictable and stable core businesses, striving to achieve more efficient resource allocation and profit growth in those areas. UBS believed that with the execution of these disposal plans, Fosun International's profitability is expected to further improve, based on which it gave a target price of HK$6.30. With the momentum in China's economy pick up, the execution of streamlining operations and the increasing dividends to shareholders in the future, the valuation of Fosun International will further improve.
Citi Research also issued a report in which it expressed its optimistic views about Fosun International's market outlook. Citi Research believed that Fosun International's profitability in 2023 was attributable to an increase in operating profit from the insurance business, a 19.2% year-on-year growth in Club Med's business volume that exceeded expectations, and better performance in the Asset Management Division which was driven by improvement in the Group's asset portfolio profitability. The report pointed out that Fosun will continue to look for appropriate opportunities to sell non-core and non-strategic assets and promote future development through synergies amongst subsidiaries. Citi Research gave Fosun a "Buy" rating, with a target price of HK$ 6.30, an expected increase of approximately 57%.
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