Supercharging AI to Enhance Global Innovation Layout, Domestic and Foreign Brokerages Bullish on FOSUN INTL (00656) Growth Potential

The World Intellectual Property Organization (WIPO) recently released the "Global Innovation Index Report 2025", with China successfully rising to the top ten of the global innovation index, demonstrating significant progress in technology research and development and innovation ecology construction. The 20th Fourth Plenary Session will be held in Beijing from October 20 to deliberate on proposals for the formulation of the "15th Five-Year Plan". It is widely expected that innovation will become one of the key directions of the "15th Five-Year Plan", and the market's attention to listed companies in technology innovation and innovative technology layout continues to increase. On October 17, Founder published a research report on FOSUN INTL (00656), focusing on the company's highlights in innovation and globalization. Founder pointed out that driven by its core capabilities in innovation and globalization, FOSUN INTL maintained a stable overall revenue and profit in the first half of the year. Furthermore, with comprehensive adoption of AI applications expected to further empower its various business sectors, the company maintains a "recommend" rating. Recently, several domestic and foreign securities firms have issued research reports, all of which recognized and expressed optimism about Fosun's strategy of deepening globalization and increasing innovation. Institutions such as Citigroup, Industrial Bank, Founder Securities, Huaxi Securities, and China Securities Co., Ltd. all maintained "buy" or "hold" ratings, with target prices ranging from 6.5 to 7.5 Hong Kong dollars. Securities firms generally believe that Fosun has demonstrated strong business resilience and innovative capabilities. China Securities Co., Ltd., Industrial Bank, Huaxi Securities, and China Securities Co., Ltd. highly recognize the continuous development of the healthcare sector driven by innovation, pointing out that Fosun's independently developed and introduced innovative drugs have made breakthroughs. HLX43, a PD-L1 targeted ADC, is currently being studied in clinical trials for non-small cell lung cancer, thymic cancer, and other solid tumors in countries such as China, the U.S., Japan, and Australia. Currently, there is no PD-L1 ADC approved for marketing worldwide, and HLX43 has the potential to become an effective and safe "broad-spectrum anticancer drug". In addition, in the field of small molecule innovation drugs, Fosun's self-developed targeted drug, Repetition, has been approved for two rare disease indications, filling the treatment gap in the relevant rare disease tumor field. Fosun has always targeted globalization and has gradually built a worldwide research and development, registration, business development, and marketing capabilities in the pharmaceutical field. As of now, Fosun's innovative biopharmaceutical products have reached nearly 60 countries and regions, benefiting over 850,000 patients worldwide. Among them, the core product for breast cancer treatment, Hans Quyou, is a "Chinese" monoclonal antibody biosimilar approved in China, the European Union, and the United States, and has been approved in over 50 countries and regions globally. In terms of global research and development, Fosun has built a leading small molecule innovation drug platform, large molecule technologies such as antibodies and ADCs, cell therapy technology platforms, as well as forward-looking nuclear medicine technology platforms. Focusing on large molecules, HENLIUS has completed over 800 drug registration applications globally and has received over 600 approvals. Fosun's global innovation extends beyond the pharmaceutical sector, and its globalization and innovation in other business sectors also receive high praise from securities firms. Founder and Founder Securities are optimistic about Fosun's comprehensive adoption of AI applications, expecting further empowerment of its various business sectors. Founder Securities pointed out in a research report that Fosun's technological innovation and AI effectively empower cultural and recreational experiences, with the GMV of the core area of the Yu Garden Mall reaching 2.6 billion yuan in the first half of 2025, a year-on-year increase of 55%; AI large-scale model applications also empower insurance claims processing. In the cultural and recreational consumption sector, Fosun Travel Club Med Mediterranean Club continues to deepen AI digital upgrades, with the G.M. Copilot providing personalized, 24-hour, real-time response services, covering markets in Brazil, France, Belgium, Singapore, Malaysia, and 12 other countries worldwide. In August of this year, Fosun Travel and Alibaba Cloud reached a full-stack AI cooperation agreement, jointly developing the "AI G.O" intelligent cultural tourism based on the commonality question and answer model, significantly enhancing the vacation experience of global customers. In the financial services sector, Fosun's Portuguese insurance business relies on AI applications to comprehensively improve operational efficiency, enhance data accuracy, and promote rapid development of the insurance business. Currently, the auto claims automation rate has increased from 48% at the end of 2023 to 66%. In terms of capital operation, Fosun has shown strong financing capabilities and continued optimization of its financial structure, gaining unanimous praise from securities firms such as Citigroup, Founder, Huaxi Securities, and Founder Securities. Securities firms generally believe that the company's financing channels are open, and debt costs are continuously decreasing, providing strong support for overall capital efficiency improvement. In September of this year, FOSUN INTL held a sustainable development syndicated loan signing ceremony in Hong Kong, where after completing the first batch of $675 million equivalent syndicated loans by the end of March, the total amount of syndicated loans increased to $910 million equivalent, setting a record for off-shore private enterprises of the same class since 2025, and achieving the highest scale of off-shore syndicated loans for FOSUN INTL in nearly 5 years, demonstrating high confidence in its business and future development in the global financial markets. Founder mentioned in the research report that the recent interest rate cut by the Federal Reserve has kicked off a new round of rate cuts, and the company's asset structure is expected to continue to be optimized, with financial stability. Several securities firms have pointed out that Fosun's core industry operations are stable, with the company continuing to focus on industries with advantages and potential, deepening globalization and increasing technological innovation, and building a resilient structure with the ability to withstand cycles, thus, there is a general optimism about FOSUN INTL's long-term growth potential.