Fosun International expects interim profit to surge up to 172% on core strength

Fosun International Ltd. (00656.HK) said first-half net profit will jump as much as 172%, the strongest growth in years for the Shanghai-based conglomerate as its core industrial operations rebounded.

"The increase is mainly due to the strong resilience demonstrated by the company's core industries in the first half of 2026, the steady improvement in operating quality, and the substantial increase in profit from industrial operations," the board said in a filing to the Hong Kong Stock Exchange.

Net profit for the six months ended June 30 is expected to reach RMB 1.5 billion to RMB 1.8 billion ($207 million to $248 million), compared with RMB 660 million in the same period last year. That represents year-on-year growth of 127% to 172%. The company did not disclose revenue figures or provide a segment breakdown in the profit alert.

The profit alert marks a sharp reversal from recent years of muted earnings. Fosun, which controls assets spanning insurance, tourism, pharmaceuticals and mining, has been selling non-core assets and reducing debt since 2022 to shore up its balance sheet. The H1 2026 guidance suggests those efforts are now translating into bottom-line improvement. The company did not declare an interim dividend, consistent with its policy over the past two years.

Shares of Fosun rose 2.8% on Wednesday, outperforming the Hang Seng Index's 0.5% gain. The stock has gained about 18% year-to-date, recovering some ground after a prolonged downturn that erased more than half its value from 2021 peaks.

The profit recovery signals that Fosun's portfolio restructuring is gaining traction. Investors will watch for the full interim report, due by the end of August, for segment-level detail on which businesses drove the rebound and whether the momentum is sustainable into the second half.

This article is for informational purposes only and does not constitute investment advice.