[ET Net News Agency, 13 July 2018] Nomura initiated coverage on Fosun International
(00656) with a "buy" rating, and a target price of HK$21.13.
It said Fosun shares have been range-bound for the past two years, on a variety of
concerns at different points in time, leading to compelling valuations currently.
Nomura believes that mainland institutional investors have taken the early regulatory
scrutiny over Fosun (in December 2015) as a quasi-assurance that Fosun has likely become
more compliant in its practices.
It anticipates net profit for FY2018-20 to be CNY14,955mn, CNY17,033mn and CNY19,392mn,
respectively, with a 3-year CAGR of 14%, reflecting the future business enhancement
capabilities under the Customer-to-Maker (C2M) strategy. (KL)