Fosun International 0656

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seen on ET Net today :

21/01/2011 09:20
Fosun (00656) to privatize Forte Land (02337)

Fosun International (00656) and Shanghai Forte Land (02337) jointly announced Fosun will privatize Forte Land by acquiring all the issued H shares and domestic shares in Forte Land at HK$3.5 apiece, representing a premium of 25.4% to the closing price of HK$2.79 per H share.

Some further extracts :

- Fosun believes that Forte's status as a listed company is an impediment to Forte's future success as Forte's ability to raise funds offshore is limited.

- The ability for Fosun to contribute substantial amounts of capital to Forte is constrained by the Listing
Rules requirements on connected transactions between a company and its controlling shareholder.

- Forte's current financial gearing levels are relatively high compared to its industry peers listed on the Hong Kong Stock Exchange, further impairing Forte's ability to obtain financing on commercially attractive terms.

[stilicon]

seen on ET Net today :
Forte buyout NAV accretive to Fosun

Fosun (00656) proposed to take Forte (02337) private at HK$3.5/share in cash.

Citigroup said the completion of the privatization would be positive for Fosun, as the transaction would lead to the removal of double discount at the group's property segment.

At HK$3.5, Fosun's NAV under Citi's scenario analysis would rise by ~6% from HK$7.15 to HK$7.56. Further, Citi believes Forte will be able to pursue additional property development opportunities by leveraging Fosun's B/S.

In addition, the house said Fosun's participation in a new US$600m China-focused private equity fund with Prudential Financial will reinforce its ability to gain access to and develop opportunities in China.

The house maintained its "buy" rating on Fosun, with a target price of HK$7.6.

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2010 results were good : http://www.hkexnews.hk/listedco/listcon ... 328839.pdf

FOSUN is slowly building a conglomerate.

In 2011 they will probably make an IPO for FOSUN Pharma, which develop well.

They are also preparing for the "financialization" of the chinese society. If the PRC build a paper-money empire as the USA did in the last century, financial services in general will do well in the next several decades.

I still believe that the management is very smart and doing well.

Compared with the big HK conglomerates, its return is consistently higher and its valuation lower.

Hopefully to be bought and never touched again for several years. (already vested)

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seen on ET Net: http://www.etnet.com.hk/www/eng/stocks/ ... E210329152

29/03/2011 Citi cuts Fosun Int'l (0656) target to HK$7.4

Citigroup raised its target price for Fosun International (00656) to HK$7.4 from HK$7.6, and maintained its "buy" rating.

The house expects management to spin off Hainan Mining within the next 12 months following its application to list Fosun Pharma in February.

Citi believes Fosun has already developed a successful track record for private equity investments. In 2010, six projects invested by Fosun have completed their IPOs and they yielded IRRs of between 64% and 268%.

But the house lowered its 2011-12 earnings estimates by 5-6% noting there is limited room for Fosun to lift steel price, which means the group could face some margin squeeze.

[winston]

Not vested

Fosun riding high in tougher times
Friday, June 24, 2011

Fosun International (0656) had an average internal rate of return of more than 30 percent last year, which was double the developer's expectation.

A plan to spin off its pharmaceutical unit on the Hong Kong bourse is also going well, said chairman Guo Guangchang.

Guo said the firm will focus on buying stakes in foreign retailers, financial services firms and resource- and energy-related companies this year.

And while Fosun's property development unit has suffered because of curbs on home purchases in first-tier cities, sales in second- and third-tier cities have been positive, Guo said.

"We did not reduce sales prices in second-and third-tier cities," added president Wang Qunbin. "Demand for homes is still strong, and the [government] policy is beneficial for companies like Fosun that aim for a long-term development."

On another positive note, Wang said that although credit is tighter in the mainland Fosun is "extremely rich in funds" after issuing US$300 million (HK$2.34 billion) in bonds and 4 billion yuan (HK$4.82 billion) in corporate bonds.

Shares of Fosun International closed 1.1 percent higher at HK$5.52 yesterday. GRACE CAO

http://www.thestandard.com.hk/news_deta ... 10624&fc=8

[winston]

Fosun sets sail for shipping stake
Friday, November 18, 2011

Fosun International (0656) may acquire a domestic shipping operation, according to a report in mainland business publication First Financial Daily.

The news comes a week after the Shanghai-based conglomerate announced plans for a joint venture insurance firm.

Fosun, whose core businesses are pharmaceuticals, property, retail and mining, is considering a stake in Deqin Group - a Zhejiang-based privately owned shipping firm.

A spokeswoman for Deqin confirmed the report but said talks are only at a preliminary stage.

Shares in Fosun gained 8.7 percent to close at HK$5.

"It is a strategic investment as Fosun can buy at a lower price and gain more after the potential listing of the company," an analyst said.

Last year, Fosun invested 608 million yuan (HK$746.5 million) in six companies that later floated their shares in the mainland, garnering a combined market capitalization of 2.87 billion yuan.

Deqin had in February applied for a Shenzhen listing to raise up to 68 million yuan, but regulators declined the bid. GRACE CAO


http://www.thestandard.com.hk/news_deta ... 11118&fc=8

[winston]

Not vested

What's the current stake of Fosun, in Focus Media ?

Do they still have a 16.17% stake ?

http://en.21cbh.com/HTML/2011-7-11/xMMj ... DUxMg.html

[winston]

not vested

DJ MARKET TALK: Fosun Down 4.5%; Hurt By Focus Media Woes

1025 [Dow Jones] Fosun International (0656.HK), which has a 19.7% stake in Nasdaq-listed Focus Media (FMCN), is down 4.5% at HK$4.25, after research firm and short-seller Muddy Waters accused Focus Media of fraudulently overstating the number of screens in its LCD network, and significantly and deliberately overpaying for acquisitions.

A Focus Media spokesman wasn't immediately available to comment. More than anything, the Focus Media woes perhaps highlight the valuation discount Fosun traded at is justified, given the many different types of businesses Fosun owns, including but not limited to steel, mining, property, pharmaceutical etc., and hence the nickname of Fosun as Shanghai's Hutchison Whampoa (0013.HK).

Clear Media (0100.HK), which runs similar business to Focus Media, is untraded so far with best bid at HK$2.86, ask at HK$3.39 vs last close of HK$3.15.

Source: Dow Jones Newswire

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seen on http://www.aastocks.com : http://www.aastocks.com/en/news/hk6/257/now.465699.html

FOSUN INTL (00656) cut to Underperform with target lowered to $4.2 by BofA ML
(2011-12-12)
Bank of America Merrill Lynch reported on FOSUN INTL (00656) stating its Underperform rating and target $4.2 with the following details:

Downgrade from Buy to U/P; A relative call vs. peers

We downgrade Fosun International to U/P from Buy as

i) it has significant exposure (74% in terms of EBIT) to cyclical sectors including steel, mining and property which are expected to encounter headwinds in the near term and

ii) it is trading at a premium relative to peers, yet we expect lower ROE in 2012/ 13E will drive a de-rating of multiples.


As such, we believe it is likely to underperform relative to peers and hence, we downgrade the stock to U/P.

Substantial downside to consensus

We cut 2012-13E earnings by 23-43%, and expect Fosun 2H11 recurring earnings to decline by 37% vs. 1H11 largely on the back of weaker steel and iron ore prices. Our new 2012-13E earnings are 22% and 29%, respectively, below consensus.

Key catalysts to our call include worse-than-expected 2H11 results, weaker-than-expected monthly property sales for Forte and sustained weakness in steel and iron ore prices.


Key risks to our investment thesis

We think there are three key risks to our investment thesis:
i) It could outperform its peers on a potential macro turnaround given the cyclical nature of its business portfolio.
ii) Favorable corporate activities include successful listing of Hainan Mining and acquisitions of quality assets at favorable prices.
iii) Government policies such as easing of property restrictions and macro loosening initiatives.


Cutting PO to HK$4.20

We lower our PO by 42% from HK$7.20 to HK$4.20 as:
1) we lower the value of listed investments based on market value by 19% to 28%,
2) we ascribe a sector average of 0.9x our 2012E P/B from 1.2x our 2012E P/B for Forte,
3) we cut the valuation of mining operations to reflect the latest iron-ore price forecast, and
4) we see higher net debt for the parent due to increased investments in landbank and pre-IPO investments.
5) Lower target discount to peers 47% avg from 38%. (r)

My personal notes -> FOSUN is perceived as a 100% cyclical and that is not trendy today. The justification of a lower PO through a "lower target discount to peers" is typical. It brings no real sense or justification.

Not a word about FOSUN Pharma. Why that ? No value at all here ?

Not a word about the retail branch. Why that ?

It is true that analysing those branches might be hard even for BoA-ML people. The company is very opaque and doesn't share a lot of information. Which in itself is very negative for me.

Yet, considering the past performance of this company, I view the current valuation as (perhaps excessively) cheap.
So my question is : when will be the time to rebuild a position on this company ? Any view to be shared ?

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Results for 2011 were announced on March 27 : http://www.hkexnews.hk/listedco/listcon ... 271691.pdf

All in all, I think the results good, for a difficult year.

- FOSUN PHARMA keeps developing, and will eventually emerge as a new major pharma conglomerate.
- The smart people at FOSUN seem not to be willing to give up mines and keep investing in them, which I find positive.
- They also are preparing for the "financialization" of the chinese economy, and also for the internationalization of the CNY, gearing up overall financial leverage and developing a Insurance business unit.

Meanwhile, it is hard to find any interest in this company anywhere. I think the path taken by FOSUN of patient investment in carefully chosen areas will be rewarded in a matter of a decade.

For the moment, FOSUN seems attractively priced.

Not vested.