After the "general rise", the Hong Kong stock market is experiencing consolidation at its current position, mainly driven by structural trends, awaiting more catalysts. Against this backdrop, investors should pay more attention to the advantageous structural opportunities in the Hong Kong stock market. Even in the face of market volatility, it shows resilience. For example, fosun intl (00656), with both innovative and global capabilities, delivering consistent performance and valuation, is worth a closer look.

fosun intl is a rare leading company rooted in China that can operate globally. Since its establishment in 1992, fosun intl has industrial layouts in over 35 countries and regions worldwide, continuously enhancing its global operational capabilities. It has now become an innovative-driven global family consumer industry group.

Continuously deepening innovation capability and strong realization of global operational capabilities.

The enhancement of fosun intl's global capabilities stems from the continuous output of innovative products and the constant improvement of global operational capabilities.

In terms of products, the biosimilar Hanlikang has played a pioneering role in fosun intl's international expansion. With external authorizations covering around 100 countries and regions, Hanlikang has been approved for listing in 48 countries and regions, becoming the most listed country and region for domestic biosimilar drugs.

With the internationalization of biosimilar drugs paving the way, henlius has not only made a name for itself internationally, but also accumulated experience in globalizing innovative drugs. Hansizhuang, the first global frontline treatment approved for PD-1 monoclonal antibody for small cell lung cancer, independently developed by henlius, is an important example. With this, the internationalization of fosun's biologics has achieved a new situation where innovative drugs and biosimilars advance together. In 2023, henlius became the first innovative drug company in the industry to profit from product sales.

In terms of operation, Fosun Intl, through organizational evolution, integrates global resources, achieves deep industrial layout and local operation based on the endowments of different countries and regions, allowing its industries and brands to continuously benefit from it.

For example, in the tourism sector, Fosun Tourism Group, with its unique light asset operation model, global layout, and global operation, has achieved remarkable growth in performance. Club Med, part of Fosun Travel Group, operates 67 resorts globally, achieving a record high revenue in the first half of 2024, reaching RMB 8.89 billion, a year-on-year increase of 10.3%. Among them, Europe, Africa, the Middle East, and the Americas region have continued growth, with significant recovery in the Asia-Pacific region. In May 2024, Club Med signed the first resort in Oman in the Middle East.

Of note is that in the domestic market, tourism companies that possess both a light asset model and global operational capabilities are extremely rare. Fosun Tourism Group sets a benchmark for the development of China's tourism industry. In addition, in the fields of consumer and insurance, Fosun Intl has also made positive contributions to China's economic growth and industrial upgrading through continuous innovation and optimization.

With the continuous strengthening of the combination of "product + operation", Fosun Intl's globalization capability is gradually being realized, and its innovation capability continues to deepen. Significantly improving its advantages in core industries such as tourism, consumer goods, pharmaceuticals, and insurance, it is widely bullish in the market.

Standard & Poor's confirms Fosun Intl's "stable" rating with credit indicators stabilizing and improving.

Recently, Fosun Intl has once again been affirmed in the international investment market. On October 21, Standard & Poor's released a report affirming Fosun Intl's debt reduction achievements and giving a stable outlook.

Specifically, Standard & Poor's recognizes the optimization of Fosun Intl's debt structure, with the proportion of bank loans in total liabilities increasing from 46% in mid-2022 to the current 73%. The overseas syndicated loan completed in September 2024 reached 0.888 billion US dollars, showing improvements in both the bank participation level and amount compared to the refinancing syndicated loan due in May. Standard & Poor's believes this is the best proof of Fosun's substantial improvement in the international syndicated loan financing environment.

The smooth financing channels reflect the confidence of domestic and foreign financial institutions in Fosun's funding and business strategies. Not only does it further reduce Fosun's reliance on public market financing, but the continuously optimized debt structure can better support subsequent liquidity management and more flexible control of the progress of subsequent asset disposal. Standard & Poor's expects Fosun Group's strategic debt reduction driven by non-core asset divestitures to continue.

Standard & Poor's positive evaluation not only confirms fosun intl's strong global and innovative capabilities, the significant repair of the balance sheet in the past two years, and the continuous enhancement of financial stability; but also provides a strong endorsement of the company's investment value.

In conclusion, with the improvement in China's economic outlook, especially as key policy initiatives are implemented, there is still significant room for growth in the Hong Kong stock market. Fosun intl benefits from its global layout, integrated innovation, and light asset operation strategy, increasing performance certainty, strengthening financial stability, and enhancing risk resistance. Subsequently, as global business continues to grow, industry-leading advantages expand, and the realization of technology innovation dividends accelerates, it is expected to ride the wave of the new Hong Kong stock market performance, leading the way into a new growth cycle.