Accelerating the research and development and commercialization of innovative drugs strengthens the certainty of FOSUN INTL (00656) as the "strongest valuation anchor".

The American Society of Clinical Oncology (ASCO) Annual Meeting for the year 2026 was held in Chicago from May 29th to June 2nd. During this time, several innovative drugs under Fosun (00656) announced significant achievements: Key subset data for the "broad-spectrum anti-cancer drug" HLX43 in the treatment of non-small cell lung cancer was released, providing important basis for its subsequent clinical development; Phase III clinical research data for the PD-1 monoclonal antibody drug H-stain used in neoadjuvant/adjuvant treatment of gastric cancer was released, heralding a new era of "chemo-free" treatment for gastric cancer; Rare disease innovative drug Fumaining disclosed Phase III study data for the treatment of symptoms associated with Type 1 neurofibromatosis and inoperable plexiform neurofibromatosis in adult patients, poised to become a new standard treatment for such patients... As a premier academic conference in the field of oncology worldwide, ASCO is considered an important window to observe the research and commercial potential of innovative drug companies. Based on the results announced this time, HLX43 is expected to accelerate into the global commercialization stage, while H-stain and Fumaining are expected to enter a new phase of commercialization. Previous data showed that in 2025, global sales revenue for H-stain reached 1.4926 billion yuan, a year-on-year increase of 13.7%. The market generally believes that after completing risk clearing through "sunny roof repair", the pharmaceutical and health business represented by innovative drugs has become the most important valuation anchor for Fosun International. With continuous breakthroughs in the innovative pipeline and accelerated global commercialization potential, coupled with steady growth in its insurance business and gradual recovery in cultural and tourism consumption business, this will further drive profit growth and valuation recovery for Fosun International. During the harvest period of innovative drugs, the accelerated realization of global market commercial potential In recent years, driven by the two engines of innovation and globalization, Fosun's innovative drugs have continued to grow rapidly in the global market, becoming its key growth driver. Data shows that in 2025, Fosun's Shanghai Fosun Pharmaceutical (02196) had 7 innovative drugs with 16 indications approved for listing domestically and internationally, with 6 innovative drugs receiving listing application acceptance, and innovative drug revenue reaching 9.893 billion yuan, a year-on-year increase of 29.59%. By the end of 2025, Fosun had nearly 40 innovative drug clinical trials approved by regulatory agencies in China, the US, Europe, and other regions, with several core products entering key clinical stages. In terms of global market BD, in 2025 Fosun licensed and cooperated for first payments exceeding US$260 million, with potential milestone payments exceeding US$4 billion. Among them, the global licensing project YP05002 targeting the GLP-1 receptor with Pfizer had a first payment of US$150 million and a potential total of US$2.085 billion. In the first quarter of 2026, the innovation in Fosun's pharmaceuticals continued the momentum of 2025, with Shanghai Fosun Pharmaceutical having 4 innovative drug listing applications accepted and 14 innovative drugs (by number of approvals) having clinical trial applications approved by regulatory agencies domestically and internationally. HLX 43, H-stain, Fumaining and other innovative drugs shone at ASCO, further raising market expectations for the commercialization and profit contribution of Fosun's innovative drugs in the medium to long term. Previously, the industry estimated that innovative drugs such as HLX43, HLX22, and HLX07 all have the potential for billion-dollar markets. Meanwhile, at the beginning of 2026, Fosun's biopharmaceutical R&D platform HENLIUS reached an exclusive commercial and jointly exclusive development and production licensing agreement with ACOcell Corporation for H-stain in Japan, with a potential total amount exceeding US$300 million; and obtained a Class I drug manufacturing and sales license issued by the Tokyo Metropolitan Government, opening up growth paths in Asia and mainstream global pharmaceutical markets. Beyond innovative drugs, Fosun's long-term value logic is being reshaped In the 2025 financial year, Fosun chose to "repair the roof on sunny days" by impairing certain real estate and non-core projects, in order to "concentrate resources, concentrate efforts, and invest in high-growth core tracks." As we enter 2026, the market generally believes that Fosun's strategy of "streamlining, focusing on core businesses" is poised to see its fruits come to fruition. Firstly, innovative drugs have become core assets with strong growth certainty. With Fosun's innovative drugs entering the commercialization phase, both its profit contribution and valuation support capabilities have significantly strengthened. Especially against the backdrop of the overall revaluation of "Chinese innovative drug assets" in the Hong Kong stock market, the value of Fosun's innovative drug platform is expected to further expand. Secondly, the stable growth of the insurance business provides Fosun with a stable cash flow and profit base. In 2025, Fosun Portugal Insurance's gross premium income reached 6.53 billion euros, with attributable net profit reaching 201 million euros, a year-on-year increase of 15.8%; during the same period, Dingrui Reinsurance saw strong growth of 25% in gross premium income to US$2.2 billion. Similarly, both domestic insurance companies saw significant growth, with Fosun Praemium Longevity realizing a net profit of 650 million yuan in 2025, a substantial increase of 492%; while Fosun United Health Insurance achieved a net profit of 139 million yuan in the same period, marking five consecutive years of profitability. In the first quarter of 2026, Fosun Praemium Longevity continued to be profitable. Although Fosun Portugal Insurance, Dingrui Reinsurance, and Fosun United Health Insurance have not disclosed data for the same period, based on the growth rate in 2025 and the industry environment in 2026, it is not difficult to predict that all three entities are likely to continue their high-speed growth momentum. Lastly, Fosun's other two core businesses - tourism, culture, and consumption - have also experienced a strong recovery. In the first quarter of 2026, Shanghai Yuyuan Tourist Mart's attributable net profit reached 157 million yuan, a year-on-year increase of 203%. Although the net profit figures for the first quarter are not large, the trend of rapid growth already reflects a positive turning point in the operating fundamentals of Shanghai Yuyuan Tourist Mart, with expectations that the momentum for subsequent performance recovery will be further unleashed. Fosun's cultural and tourism performance during the 2026 Spring Festival, Qingming Festival, and May Day holidays remained impressive. During the May Day holiday, the number of inbound tourists to Sanya Atlantis Resort surged by 90% compared to the same period last year. From a capital market perspective, this means that Fosun has transitioned its valuation logic from the past "diversified investment platform" to a "core industrial operation group" valuation system. Recently, many domestic and foreign brokerages such as Citigroup, UBS, Guotai Haitong, and China Securities Co., Ltd. have successively published research reports, bullish on Fosun International's fundamentals and profit recovery. Citigroup in particular emphasized that based on the improving fundamentals, Fosun International is expected to deliver strong performance in 2026. Returning to innovative drugs, with the series of research results for HLX43, H-stain, Fumaining, and other innovative drugs officially released at ASCO, Fosun's research and development capabilities and global commercial potential for innovative drugs are being truly recognized by the market. From a medium to long-term investment perspective, innovative drugs for Fosun are not just a rapidly growing business, but also a core variable driving the reshaping of its valuation.