How to view Fosuns current value?
Fosun’s value can be assessed in the following perspectives: First of all, the holding company of Fosun has provided added value for invested companies. i.e Sinopharm Group. And Fosun also actively participates in invested companies which are in cyclical industries, and helps them to enhance their operational efficiency. Hainan Mining and Nanjing Steel United are good examples. Thus we think the holding company of Fosun should be given a premium instead of a discount. Secondly, investment is one of the strengths of Fosun. Fosun currently has sufficient cash at the holding level, which is likely to bring high returns using Fosun’s investment experience. So we believe cash at the holding level should be given a premium as well. Thirdly, Fosun has substantial unlisted assets that have yet to become listed, which brings potential value to the group. Fourthly, profits made by Fosun primarily come from China. So Fosun is able to share in this steady growth domestically as well as outsized ga
