summary#? Our view: We are deeply involved in the four major business segments of health, happiness, wealth, and intelligent manufacturing. In recent years, the company has accelerated its withdrawal from non-core assets and optimized its capital structure to better focus on core business. The company's valuation is currently at a historically low level, and the layout is just right. We maintain the company's “increase in holdings” rating and maintain the target price of HK$9.06. In 2023-2025, the net assets per share corresponding to the company's target price were 0.60, 0.58 and 0.56 times, respectively. Investors are advised to pay attention.
The scale of business has grown steadily, and the profitability of core industries has increased markedly: total revenue for the first half of 2023 was RMB 97.06 billion, an increase of 10.9% over the previous year. Net profit to the mother was RMB 1.36 billion. The Group's industrial operating profit for the first half of the year was RMB 3.37 billion, a year-on-year increase of 66% in the same caliber. The four core subsidiaries contributed 73% of revenue. After the adjustment, NAV remained stable, maintaining a level of 20.1 HKD/share.
Continue to increase the withdrawal of non-core non-strategic assets and consolidate the liquidity safety cushion: In the first half of 2023, the Group achieved a cash return of more than RMB 20 billion from non-strategic non-core assets at the consolidated statement level. Of these, the withdrawal of assets at the group headquarters level achieved a cash return of more than RMB 14 billion. The Group successfully crossed the maturity wall of public debt and paid a total of RMB 6.73 billion in domestic bonds and overseas debt exceeding US$2.7 billion. The Group did not have any major foreign bonds maturing within one year. The international rating agency S&P fully acknowledged Fosun's performance in asset disposal to reduce debt and optimize the debt structure, and raised the group's rating outlook to stability.
Total debt is declining in an orderly manner, and financial indicators are getting healthier: on the semi-annual balance sheet day, interest-bearing debt in consolidated statements was 220.9 billion yuan, down 15.39% year on year, and group interest-bearing debt was 94.7 billion yuan, down 18.64% year on year.
Strong overseas business momentum: In the first half of 2023, the Group's overseas revenue was RMB 44.09 billion, accounting for 45.4% of total revenue, an increase of 3.0% over the previous year, and a 10-year compound growth rate of 60%. Overseas core subsidiaries have achieved remarkable results in global expansion with the Group's empowerment. Fosun Portugal Insurance achieved total premium revenue of 2.65 billion euros, maintaining its leading position in the Portuguese market, accounting for 30% of Portugal's total market share; HAL German Private Bank's revenue was 224 million euros, up 24% from the previous year, and total assets were 13.3 billion euros, the same as the previous year.
Risk warning: public health events; macroeconomic downturn; ecological synergy effects fall short of expectations; fluctuations in the secondary market make the market value of listed companies it holds fluctuate greatly