Fosun International Expects Strong First-Half 2026 Earnings as Core Businesses Drive Profit Recovery

Fosun International Expects Strong First-Half 2026 Earnings as Core Businesses Drive Profit Recovery

HONG KONG — Fosun International has projected a strong rebound in its financial performance for the first half of 2026, forecasting a significant increase in profit as its core businesses continue to deliver resilient growth and improved operational efficiency.

In a positive profit alert issued by the company, Fosun said profit attributable to shareholders for the first six months of 2026 is expected to reach between RMB1.5 billion and RMB1.8 billion, representing a 127% to 172% increase compared with the same period last year. According to the company, the anticipated growth reflects stronger performance across its core industries, higher industrial operating profits, and continued improvements in business quality.

The earnings outlook follows Fosun’s strategic restructuring initiatives implemented over the past year, including the divestment of non-core assets and a renewed focus on businesses with long-term growth potential.

Strategic Transformation Begins to Deliver Results

Market observers believe the company’s latest earnings guidance validates its strategy of streamlining operations, strengthening core businesses, and enhancing operational efficiency.

Following impairment provisions made in 2025 for selected real estate projects and non-core investments, analysts noted that Fosun entered 2026 with a stronger financial foundation, positioning the company for a sustained earnings recovery.

Industry analysts also pointed to Fosun’s disciplined portfolio optimization strategy, saying the company has shifted its focus toward strengthening investment capabilities and improving profitability across its principal business segments, including healthcare, insurance, consumer businesses, and cultural tourism.

Pharmaceutical and Insurance Businesses Remain Growth Pillars

Among Fosun’s major business units, healthcare and insurance continue to serve as the company’s primary earnings drivers.

Fosun Pharma, one of the group’s flagship healthcare companies, reported first-quarter 2026 revenue of RMB10.073 billion, representing a 6.93% year-on-year increase, while net profit attributable to shareholders reached RMB871 million, up 13.87% from the previous year. Excluding non-recurring items, adjusted net profit increased by 21.96% year-on-year.

Beyond financial performance, Fosun’s pharmaceutical business has continued expanding its innovative drug pipeline.

During the first quarter of 2026, the company secured acceptance for four new drug applications while receiving regulatory approval for 14 clinical trial applications across domestic and international markets.

One of the year’s major milestones came in June, when China’s National Medical Products Administration approved a new indication for Henlius’ anti-PD-1 monoclonal antibody HANSIZHUANG, making it the world’s first approved perioperative anti-PD-1 treatment for gastric cancer. The therapy subsequently received approval from the European Commission for treating adult patients with unresectable or metastatic squamous non-small cell lung cancer.

Industry observers believe products such as HANSIZHUANG, together with Fosun’s broader innovative drug pipeline, are entering a new commercialization phase that could strengthen future revenue growth while supporting continued investment in research and development.

Insurance also remained a stable contributor to the group’s earnings.

Fosun Insurance Portugal (Fidelidade) posted net profit attributable to shareholders of EUR201 million in 2025, representing more than 15% year-on-year growth, while maintaining double-digit premium growth across both domestic and international markets during the first half of 2026. Meanwhile, Pramerica Fosun Life Insurance reported first-half net profit of RMB786 million, already surpassing its full-year 2025 earnings.

Consumer, Tourism and Intelligent Manufacturing Businesses Build Momentum

Outside healthcare and insurance, Fosun’s consumer, tourism, and intelligent manufacturing businesses also demonstrated encouraging growth.

Consumer-focused subsidiary Yuyuan expects first-half 2026 net profit attributable to shareholders to range between RMB120 million and RMB170 million, representing an increase of 91.04% to 170.64% year-on-year. The company attributed the improvement to ongoing business transformation initiatives, product portfolio optimization, and stronger operational efficiency.

Its jewelry and fashion business has likewise benefited from product innovation, enhanced consumer experiences, and international expansion, positioning the segment for continued recovery.

Fosun Tourism Group also maintained strong operating momentum throughout major holiday periods in China.

During the Labor Day holiday, inbound visitor arrivals at Atlantis Sanya increased by 90% compared with the previous year. Club Med Lijiang Resort welcomed more than 30,000 guests, while revenue across Club Med’s China operations rose 6% year-on-year. Visitor numbers at Alps Snow Live climbed by 30%.

The tourism portfolio also expanded with the groundbreaking of the Haitang Performing Arts Center in Sanya, a key component of Fosun’s ULTRAMED development that will complement Atlantis Sanya as a dual tourism destination. Construction also began on the company’s integrated development project in Clear Water Bay, Hong Kong, envisioned as a new mixed-use urban landmark.

In intelligent manufacturing, Hainan Mining forecast first-half net profit of RMB470 million to RMB550 million, representing year-on-year growth of 68% to 96%. The company cited strong demand in its new energy business, including multiple shipments totaling 70,000 tons of lithium concentrate, supporting continued lithium salt production.

Meanwhile, Wansheng expanded its global manufacturing footprint with the launch of its first overseas production facility in Thailand, where phosphate ester flame retardant production has officially commenced.

Market Sees Clearer Path to Long-Term Growth

Analysts believe Fosun’s latest earnings guidance marks an important milestone in the company’s transformation strategy, reflecting a shift from portfolio optimization toward stronger operational performance and sustainable profitability.

The company continues to pursue long-term financial targets that include restoring annual profit to around RMB10 billion, generating RMB60 billion in cash returns, reducing total debt below RMB60 billion, and ultimately achieving an investment-grade credit rating.

Investor confidence has also been supported by Fosun’s continued share repurchase program. Between March 30 and July 10, the company repurchased approximately 53.41 million shares with a total consideration of around HKD216 million, underscoring management’s confidence in the group’s long-term outlook.

With continued progress across healthcare, insurance, consumer businesses, tourism, and intelligent manufacturing, industry observers believe Fosun International is entering a new phase of earnings recovery driven by innovation, globalization, and stronger operational execution.

via ACN Newswire / Money News PH