After the close on August 3rd, integrated tourism group Fosun Tourism Group (HK:01992) issued a profit forecast for the first half of 2023, showing a positive outlook. Benefiting from the relaxation of global travel restrictions and effective implementation of company strategies, Fosun Tourism’s various business segments continue to experience strong recovery.
At a fixed exchange rate, the group’s tourism revenue is expected to increase by no less than 24% compared to the first half of 2022 and the first half of 2019. The net profit attributable to shareholders is projected to be no less than 430 million yuan, marking a turnaround from a net loss of 197 million yuan in the first half of 2022.
*The term “revenue” here refers to the total sales of Fosun Tourism’s various business segments, including Club Med and others, Atlantis Sanya, the Vacation Asset Management Center, and other leisure tourism services. The Vacation Asset Management Center specifically includes the Taicang and Lijiang projects.
As of the close on August 4th, the group’s stock price surged by 12.7% to 8.87 Hong Kong dollars per share, resulting in a total market capitalization of approximately 11 billion Hong Kong dollars.
Specifically, Club Med’s revenue is expected to be no less than 7.54 billion yuan, representing a growth of at least 26% compared to the same period in 2022 and surpassing the same period in 2019 by at least 14%. Thanks to this significant revenue growth, Club Med’s unaudited net profit has steadily increased compared to the same periods in 2022 and 2019.
Due to the robust release of vacation demand following the reopening of domestic tourism in China, Sanya Atlantis is expected to achieve revenue of no less than 840 million yuan, indicating a growth of at least 73% compared to the same period in 2022. For the first half of 2023, Sanya Atlantis’ EBITDA profit margin is expected to be no less than 45%.
Furthermore, Fosun Tourism maintained a robust financial position during the first half of 2023. As of June 30, 2023, the group’s expected cash and bank balances are no less than 3.2 billion yuan, and the expected unused bank loan quota is no less than 2.8 billion yuan.
About Fosun Tourism Group
Fosun Tourism, formerly the commercial division of Fosun International Group, was listed on the Hong Kong Stock Exchange main board in 2018 (01992.HK). The company’s business covers three main segments: resorts, tourist destinations, and leisure vacation services and solutions. The resorts business includes high-end brands such as Club Med, offering all-inclusive leisure vacation experiences in the Mediterranean, Casa Cook, a boutique luxury resort, and Cook’s Club, a new generation of trendy vacation hotels. The tourist destinations include Atlantis Sanya, a high-end integrated entertainment and leisure destination, FOLIDAY Town, a comprehensive international leisure destination, and Albion, a professional tourist destination operator. The leisure vacation services and solutions segment includes cultural and entertainment activity provider Fanxiu, international parent-child learning and play club Miniversity, and the global membership club Foryou Club.
| Source: Official Announcement
| Image Credit: Fosun Tourism Group Official Website
| Editor: LeZhi
