Fosun Chief Sees Profit Rebound to ‘Normal’ Levels Next Year
(Bloomberg) -- The billionaire founder of one of China’s biggest conglomerates said profit at his insurance, drugs, tourism and leisure group will rebound strongly next year from a 2020 plunge caused by the pandemic.
The Fosun Group’s tourism and retail segments have been hit hardest as the global health crisis curtailed travel and shopping, Chairman Guo Guangchang said in a Bloomberg Television interview.
While China has reopened much of its economy after months of coronavirus shutdowns, the U.S. and Europe are still struggling to contain the crisis, adding risks for Fosun, which got 45% of its revenue overseas last year. The conglomerate is betting on its pharmaceuticals division to offset slumps related to the pandemic.
A Covid-19 vaccine being developed by Pfizer Inc. and BioNTech SE and licensed by Fosun to test and distribute in China may be commercialized as early as October, Guo said, without specifying where it could be marketed first.
Net income at Fosun International Ltd., the group’s flagship, will probably slide 34% this year to 9.75 billion yuan ($1.4 billion), the average of analyst estimates. Profit will jump 41% to 13.8 billion yuan next year, the estimates show. Net income dropped 74% in the first six months of this year, the company said Thursday in a statement.
“We are recovering very quickly,” Guo said. “Fosun businesses are very resilient.”
©2020 Bloomberg L.P.