Driven by the 50 basis point rate cut from the Federal Reserve, along with the announcement of multiple heavyweight bullish policies by the Governor of the People's Bank of China, Pan Gongsheng, on September 24, the SSE, SZSE, HSI indexes and others greeted a general rise, significantly boosting market sentiment. Stocks with strong growth potential and solid value fundamentals are likely to receive priority votes from investors. With industrial layout in over 35 countries and regions globally, the deep operational capabilities in global operations continue to improve, and as a global leader in the innovative-driven global household consumption industry, Fosun Intl (00656) deserves a higher valuation from the market and is expected to take the lead.

Anticipation of reserve requirement ratio cuts has opened a profit window for the Hong Kong stock market.

On the current global economic stage, the U.S. economy acts like a giant stone thrown into the water, with the ripples spreading rapidly to every corner of the world. Recently, the Federal Reserve made a significant 50 basis point rate cut. According to the Fed's forecast, the federal funds rate by the end of this year will reach 4.4%, targeting a range of 4.25% to 4.5%, dropping to 3.4% by 2025, and expected to fall to 2.9% by 2026.

Analysis indicates that with the Fed initiating rate cuts, the monetary policy space for various central banks further opens up. The Fed's rate cuts help alleviate capital outflows and exchange rate volatility in countries outside the U.S., promote economic growth, enhance market sentiment, and drive stock market gains.

On September 24, Governor of the People's Bank of China, Pan Gongsheng, announced a series of significant policies, including reserve requirement ratio cuts, interest rate cuts, and reductions in existing home loan rates, which attracted high market attention. The market anticipates that lowering the reserve requirement ratio will release 1 trillion yuan of liquidity. The reserve cut announced on the 24th is the second cut this year, totaling 1 percentage point reduction cumulatively and providing the market with approximately 2 trillion yuan in long-term liquidity. The anticipated favorable policies, released in a multi-pronged approach, are expected to boost consumer spending and market confidence.

From September 10 to 24, the Hang Seng Index has maintained an upward trend for 8 consecutive days, with a cumulative increase of over 12%. Against the backdrop of the rate cut cycle opening and the introduction of intensive bullish policies, the Hong Kong stock market is gradually entering an accelerated profit and liquidity recovery window, where stocks with strong fundamentals and substantial value deserve attention.

Successfully creating a series of 'top-notch' advantages in core industrial tracks.

Since its establishment in 1992, fosun intl has had industrial layout in over 35 countries and regions worldwide, continuously improving its global depth of operation capabilities. It has now become an innovative-driven global family consumer industry group.

In the first half of 2024, the four core subsidiaries - shanghai yuyuan tourist mart, fosun pharma, fosun portuguese insurance, and fosun tourism and culture actively promoted focused strategies, concentrating core assets on industry-leading growth and value-based companies. They have achieved top market positions in their respective industries, strengthening their competitive advantages.

At the same time, as a global pioneer, fosun intl's overseas business continues to bring stable profit expectations. In the first half of 2024, the group's overseas revenue reached 45.87 billion yuan, a 4% year-on-year growth, with the proportion of total revenue rising to 47%. High-quality globalization operations are gradually becoming a new growth engine.

By focusing on its core business, fosun intl's advantages in the pharmaceutical, tourism, consumer, and insurance industries continue to grow.

For example, in the insurance sector, in the first half of this year, fosun portuguese insurance achieved double growth in domestic and international businesses in Portugal. Overseas performance ratio further increased, with total euro 0.885 billion in international business, accounting for over 30%; its MyFidelidade App registered users exceeded 1.6 million, surpassing 15% of Portugal's total population, with a 16% increase in digital channel sales year-on-year.

In the cultural tourism sector, fosun intl's light-asset operating model has shown significant effectiveness, with Club Med, Sanya Atlantis, and Taicang Alps IP becoming benchmarks in the domestic tourism industry. Taking Club Med as an example, out of its 67 resorts operated globally, those using lease and management models account for 85%, with self-owned resorts decreasing to 15%. In the first half of 2024, its revenue reached a new high of 8.89 billion yuan, a 10.3% year-on-year growth. The Europe-Africa-Middle East and Americas regions continued to grow, while the Asia-Pacific region showed significant recovery. In May 2024, Club Med also signed the first resort in the Middle East in Oman.

Today, under fosun tourism and culture, Club Med leads globally in exquisite all-inclusive resort vacations; Sanya Atlantis is a leading high-end integrated resort tourism destination in China, propelling Hainan tourism into the 3.0 era; and Yuyuan's Lao Miao Gold, a time-honored Chinese brand and nationally renowned jewelry brand. These enterprises and products that lead in their respective industries help fosun intl continue to consolidate its leading position in the relevant industries.

CAR-T therapy, innovative drugs, cutting-edge medical instruments are blooming, marking fosun's entrance into the commercialization phase of the medical and health sector.

Recently, our country has also made significant progress in CAR-T therapy in many aspects. On the one hand, an increasing number of CAR-T therapies have been approved by the National Medical Products Administration, entering the clinical trial and market application stages. On the other hand, some leading biopharmaceutical companies have announced new collaborations and research and development plans to enhance the efficacy and safety of CAR-T therapy. Local governments are also increasing their support for CAR-T research and industrialization, bringing broader prospects for the domestic application of CAR-T therapy.

In recent breakthroughs in cancer immunotherapy, CAR-T therapy, with its significant effects on hematologic malignancies, especially B-cell acute lymphoblastic leukemia (B-ALL), has become a highly concerning cutting-edge treatment. Among them, Fosun International's joint venture company, Fosun Kite, has China's first approved CAR-T cell therapy product on the market, the Yescarta injection (trade name: Yikaida), which has obtained two indications.

Now, as the annual national medical insurance negotiation officially begins, whether CAR-T therapy can be included in medical insurance has once again become a hot topic in the industry. In August this year, the National Medical Insurance Administration announced the list of drugs passing the formal examination for the adjustment of the 2024 National Basic Medical Insurance, Work Injury Insurance, and Maternity Insurance Drug List, including four CAR-T products, with Fosun Kite being one of them.

With the maturity of CAR-T therapy, market demand, and the implementation of policy incentives, enterprises that have completed the layout of CAR-T products are expected to receive a commercial boost. Recently, Fosun Pharma announced its intention to acquire 50% of Fosun Kite's equity held by Kite Pharma for cash. After the transfer is completed, Fosun Pharma will hold 100% of Fosun Kite's equity and intends to make a cash capital injection of $10 million or the equivalent in RMB to Fosun Kite as a single shareholder.

Market expectations point to the rapid development of CAR-T technology and cell therapy product Yescarta in China through the close collaboration between the two parties in the past. The prospects for the development of cell therapy are promising, and Fosun is expected to usher in the next growth cycle.

Now, in the health sector, Fosun has achieved a 'multi-point flowering' of multiple innovative drugs, cutting-edge medical devices, and innovative therapies. Fosun Pharma has had 4 products with a total of 9 indications approved and 4 products with a total of 9 indications entering pre-approval/key clinical stages, with 9 products (calculated by indications) approved for clinical trials. Henlius has made continuous breakthroughs in the independent research and development and production of innovative biopharmaceuticals, with the world's first anti-PD-1 monoclonal antibody, Hansizhuang, for first-line treatment of small cell lung cancer having been approved for 4 indications. On September 9, Sisram Med announced that the registration application for its revolutionary long-acting type A botulinum toxin product DaxibotulinumtoxinA-lanm has been officially approved by the China National Medical Products Administration for temporary improvement of moderate to severe glabellar lines caused by activity of the procerus or corrugator supercilii muscles in adults, becoming the first DaxibotulinumtoxinA-lanm botulinum toxin product to be approved for marketing in China.

In cutting-edge medical devices, on September 6, Intuitive Fosun's Ion Bronchoscopy Navigation Operation Control System completed its first commercial installation at the Shanghai Chest Hospital. This is an important first step in the broader commercialization process of the Ion system in China, representing a breakthrough in applying advanced minimally invasive robot technology and improved treatment effects to lung cancer treatment by Intuitive Fosun, marking a breakthrough in the commercialization of natural orifice robot technology in China. As of the second quarter, Ion has achieved 680 landed applications globally, with 0.12 million procedures, earning a good reputation among hospitals and patients worldwide and proving its positive impact through research.

In addition to the health, cultural tourism, and insurance industries, Fosun's other sector businesses are actively promoting their global strategy to accelerate the realization of performance. Fosun's globally leading automation and digitization company, Siasun Robot & Automation, achieved overseas new orders of 3.99 billion yuan in the first half of 2024. On September 10, Siasun Robot & Automation's global headquarters was officially inaugurated in Shanghai's Jiading District, expanding its businesses in automotive, new energy, and other fields to reach nationwide and overseas markets. Hainan Mining announced on September 13 that its wholly-owned subsidiary, Rock Oil, plans to make a comprehensive tender offer of approximately 1.302 billion yuan for Tethys Oil AB, in order to acquire the oil field rights in multiple blocks in the Sultanate of Oman. This acquisition will not only significantly enhance Hainan Mining's oil and gas business scale but also continue to solidify its global layout of 'minerals + energy'.

It is foreseeable that with the commercial realization of many global and innovative achievements, Fosun International is expected to see a leap in value, accompanied by the market's recovery, worthy of a higher valuation.