650 billion?100 billion!Remove Fosun's real liabilities

Source | Bohufn

Author | A Tao

100 billion liabilities, reducing holdings, and regulatory departments to investigate ... Recently, Guo Guangchang and Fosun have attracted much attention from public opinion.

On September 13th, the world's largest financial information company "Bloomberg News Agency" published a report entitled "China Regulatory Commission Requirements and Some State -owned Enterprises to Fitness and Fin -Singing Enterprises". The star pushes the front of the wind.

Guo Guangchang, who had just returned to China from abroad, couldn't sit still. On September 15, Fosun stated that it would be serious about Bloomberg News reports and will filed a lawsuit with the court.

In just a few days, Fosun's stock price passed the roller coaster, and the plunge caused by Bloomberg reported to prosecution caused a rise. The core focus of the market is still the debt issue of Fosun International.

Is it true that the liabilities that were previously rumored to be true? Why did Fosun do some reducing holdings in the near future? Next, Bohu Finance will discuss with you two questions.

Question 1: Fosun liabilities 650 billion?

As soon as Bloomberg reported, many people paid attention to Fosun's constant reduction of shares this year. The Internet even rumored that Fosun owed 650 billion in debt.

Let's take a look at the financial report of Fosun in the first half of the year. In the first half of the year, Fosun's international revenue was about 82.892 billion yuan, a year -on -year increase of 17.7%, of which overseas business revenue was about 38.76 billion yuan, accounting for 46.76%of the total revenue.

From a data point of view, financial ability is relatively stable. Where did these 650 billion claims come from?

Many people may not know that 650 billion debts are all liabilities of Fosun International Consolidation Statement, which contains liabilities such as insurance companies, banks and other financial institutions. Liabilities and companies' traditional interest debt are not the same concept.

Therefore, the caliber of the combined statement has led to higher total debt. Another, these subsidiaries have independent legal entities, and their debts are independently responsible for their debt.

Excluding the debt of Fosun's financial institutions, Fosun International's interest borrowing is 260 billion yuan, and then the debt of Yuyuan and Fosun Pharmaceuticals and its subsidiaries will really belong to Fosun International's liabilities. It is about 100 million yuan, and the corresponding assets worth 270 billion yuan are corresponding. The corresponding NAV (net asset value) per share should be around 20 yuan.

Judging from the current leverage ratio and debt costs of Fosun International, the two data have performed smoothly in the past six years.

Judging from the materials disclosed by the Fosun Group's semi -annual report, the total of 1,17.65 billion yuan in the three cash, bank balance and regular deposits of Fosun Group.

According to the leveraged ratio obtained from the interest calculation debt/total capital, from 2015-2021 and the first half of 2022, the company's leverage ratio was 53.6%, 50.7%, 52.4%, 53.7%, 53.5%, 54.3%, 53.8% , 56.8%.

In addition, the average debt cost of the above time period was 5.0%, 4.5%, 4.7%, 5.0%, 5.1%, 4.8%, 4.6%, and 4.5%.

Since the data performance is stable, why should you "sell"?

You know, Guo Guangchang has built a global home consumer industry group in 30 years, involving four major business blocks of health, happiness, wealth, and intelligent creation. The industrial map has been expanded from China to more than 30 countries and regions.

At present, Fosun has become one of the most successful global companies in China. In 2022, nearly half of the revenue came from overseas.

But recently, Fosun has frequently sold the equity of the listed company.

On September 6 this year, Fosun International transferred the stock agreement of 28 million Fosun Tourism Culture to a third party at a price of HK $ 8.57 per share and cash out HK $ 240 million.

According to incomplete statistics, since 2022, Fosun Group has reduced its holdings of more than 10 billion yuan on its shareholding or holding listed companies. The reduced listed companies include Tsingtao Beer, Hainan Mining, Zhongshan Public, and Taihe Technology.

In the context of the global economic downturn and the continuous raging of the new crown epidemic, the environment facing enterprises is becoming more complicated, and cash flow is an indispensable guarantee for enterprises. This may also be the reason for Fosun's large reduction of holdings.

From the perspective of Bohu Finance, Fosun's shrinkage is more of a strategic level of investment.

In the future, Fosun may continue to withdraw from investment, reduce holdings, or sell properties. In fact, as Ren Zhengfei talks, it is most important to ensure cash flow and profits.

In the era of stock competition, it is a huge adventure with high leverage to leverage. Instead, you can shrink the investment landscape and reduce the pressure of debt to cross the winter. As a private enterprise, what Fosun is to do is to build a high -saving wall. Perhaps it is based on expectations that are not optimistic about the future.

Question 2: Fosun's influence geometry?

In August of this year, Moody's rating of Fosun International Enterprise Family Rating from BA3 to B1, the rating outlook as "negative", directly aroused the market's concerns about Fosun.

Throughout the overall environment, the overseas debt exhibition period of domestic private enterprises in the past year has a lot of exhibitions. The international capital market is very vigilant about the issuance of Chinese private enterprises. It is summarized that Moody's concerns are concerned that the external environment is expected to have Fosun International. In the current environment, this is also understandable. You know, since 2021, the external capital market has continued to deteriorate, and a large number of Chinese companies have been rated. Especially private enterprises without government credit.

However, the ratio of private enterprises in Jiangsu, Zhejiang and Shanghai, and Fosun's rating still maintains overall advantages. Financial fundamentals lead several levels of other companies.

Despite the recent storm of public opinion, many Chinese and foreign banks such as Industrial and Commercial Bank of China, HSBC China still signed strategic cooperation with Fosun to provide financial support. After Fosun International's mid -term performance was released in 2022, Goldman Sachs, Morgan Stanley, CICC and other institutions all issued reports, unanimously giving "buy" or "running a big market" rating.

Morgan Stan -Li's analysis report on September 16, the report believes that the recent medium retaliation star liabilities are mainly debt at the subsidiary level. It is estimated that its group holding level (HOLDCO) liabilities are far less than this, including domestic and overseas bonds and banks Loan, etc.

This is the third time Damo has supported Fosun International's financing capabilities for a stable ability in the short term. He believes that Fosun has enough cash financing capabilities and can withstand recent market pressure. Selling some mobile assets is more to enhance cash reserves. Enter "rating, target price 11.4 Hong Kong dollars.

As of the end of the reporting period, Fosun's cash and bank balance and regular deposits have increased by about 21 billion yuan to 117.65 billion yuan, which can completely cover 45%of its total combined debt. The total debt accounts for 56.8%, which shows that the group's financial situation is very stable.

Why do Fosun still get a lot of capital support in such a difficult environment? The reason is the optimization of Fosun's asset portfolio.

Acquisition, transformation, rising performance, and reducing holdings are Fosun's strategy. Although Fosun has reduced its holdings one after another, at the same time, it is also investing in strategic projects such as high -tech industry and Yuyuan Fuyou plot projects. To achieve better industrial layout.

(Da Vinci Surgical Robot, Picture Source: Network)

On September 16th, Fosun Key Science and Technology Innovation Project — Audio Fosun Headquarters and Industrialization Base Projects announced that it has landed in Zhangjiang, Pudong, with a total investment of more than 700 million yuan, covering a total area of ​​about 2.08 hectares (31.2 acres). Localized surgical robot ecosystems constructed by technology, training, services, support, and solutions.

The financial report shows that in 2021, the Star Science and Technology Innovation invested 8.9 billion yuan. In the first half of this year, science and technology investment reached 4.6 billion yuan, an increase of 21%over the same period last year. The focus was on strengthening hard technology innovation in health and intelligent manufacturing.

Looking back at Bloomberg's report, Fosun's assets are generally high -quality and can cover the liabilities. It should not be discredited. This private enterprise has never forgotten its origin. "As a company rooted in China, China is always the most important base of Fosun."

Bohu Finance believes that sooner or later, the market will understand the considerations behind Fosun. Let's take a look at the situation of Fosun in the fourth quarter.

Reference source:

1. Chinese Shang Tao Lue: Fosun's close worry and far -sightedness

2. Golden Horn Finance: Behind the rating of S & P adjustment, Fosun debt is seriously misunderstood?

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