According to Citigroup, FOSUN INTL is expected to record a loss last year, lowering the target price to HKD 5.6

Citi's research report pointed out that Fosun International (00656.HK) subsidiary Shanghai Yuyuan recently issued a profit warning, estimating that Yuyuan's subsidiary will incur a net loss attributable to shareholders of RMB 4.8 billion in the fiscal year 2025. Considering Yuyuan's profit warning and the latest forecast for Fosun's other businesses (mainly in the health sector), it is expected that Fosun will record a net loss of approximately RMB 778 million in the fiscal year 2025.

Citi adjusted its target price for Fosun International's listed investment from HKD 6.5 to HKD 5.6 when calculating the net asset value of the investment; maintaining a "Buy" rating. It believes that the group's strategy to divest non-core assets through sales or asset securitization could accelerate the group's deleveraging process and potentially narrow its current net asset value discount of up to 75%.

Citi also lowered the group's earnings forecast for this year and next year by 17% to 28%, but believes that its ability to conduct value-accretive acquisitions in a highly volatile stock market has potential upside