Shanghai Fosun Pharmaceutical (600196.SH) receives continuous increase of 3.575 million A shares by its major shareholder! Firmly optimistic about future development.

According to the latest equity disclosure information from the Hong Kong Stock Exchange, Shanghai Fosun Pharmaceutical (600196.SH; 02196.HK) has received intensive additional holdings from its major shareholder Fosun High Technology in the past two weeks. It is reported that on August 30, 2024, Fosun High Technology increased its holdings in Shanghai Fosun Pharmaceutical by 885,000 A-shares, with an average purchase price of 22.594 yuan. Subsequently, from September 3 to 5, it continued to increase its holdings of Shanghai Fosun Pharmaceutical A-shares for three consecutive days, with average purchase prices of 22.721 yuan, 22.603 yuan, and 22.833 yuan respectively. It is estimated that since August this year, Fosun High Technology has accumulated 3.575 million A-shares of Shanghai Fosun Pharmaceutical, increasing its shareholding percentage from 41.8% to 41.97%. The continued increase in holdings by Fosun High Technology demonstrates the confidence of the major shareholder in the future development of Shanghai Fosun Pharmaceutical. Not only has the parent company Fosun High Technology continued to increase its holdings, but Shanghai Fosun Pharmaceutical itself has also been frequently buying back its own shares since the beginning of this year. According to an announcement on September 3, 2024, as of August 31, Shanghai Fosun Pharmaceutical had repurchased a total of 2,836,100 shares in the A-share market, with a total repurchase amount of approximately 62.83 million yuan, at a repurchase price range of 21.87 yuan/share to 22.42 yuan/share. In addition, Shanghai Fosun Pharmaceutical implemented its first H-share repurchase on August 28. As of September 5, 2024, Shanghai Fosun Pharmaceutical had repurchased a total of 3,850,500 H-shares, with a total repurchase amount of approximately 47.253 million Hong Kong dollars, at a repurchase price range of 12.64 yuan/share to 11.98 yuan/share. Shanghai Fosun Pharmaceutical's latest disclosed 2024 interim report shows that the company achieved operating income of 20.463 billion yuan in the first half of the year, excluding COVID-related products, with a year-on-year revenue growth of 5.31%. The core pharmaceutical business achieved operating income of 14.677 billion yuan in the first half of 2024. Among them, income from innovative drugs exceeded 3.7 billion yuan, maintaining steady growth. At the same time, Shanghai Fosun Pharmaceutical further consolidated its global operational capabilities, achieving overseas income of 5.51 billion yuan, a year-on-year increase of 15.13%. Since 2024, Shanghai Fosun Pharmaceutical has continuously promoted asset structure optimization and accelerated cash flow. In the first half of this year, Shanghai Fosun Pharmaceutical achieved operating cash flow of 9.07 billion yuan, a year-on-year increase of 5.36%, surpassing the growth of operating profit in the same period. Since 2024, Shanghai Fosun Pharmaceutical has completed disposals and signed disposal contracts with a total amount exceeding 2 billion yuan. With the impact of COVID products basically cleared, Shanghai Fosun Pharmaceutical has further focused on innovative drugs and high-value equipment, injecting new power into high-quality development. In the first half of the year, Shanghai Fosun Pharmaceutical has been favored by multiple investment institutions. Among them, Morgan Stanley has raised its target price for Shanghai Fosun Pharmaceutical (02196.HK) Hong Kong stocks to 1.7 Hong Kong dollars and maintained a "buy" rating on Shanghai Fosun Pharmaceutical. Another international investment bank, Citigroup, has set a target price of 2 Hong Kong dollars for Shanghai Fosun Pharmaceutical's Hong Kong stocks, maintaining a "buy" rating. CITIC SEC has given Shanghai Fosun Pharmaceutical (600196.SH) a target price of 32 yuan for A-shares and maintained a "buy" rating.