|Bid||42.050 x N/A|
|Ask||42.350 x N/A|
|Day's Range||41.800 - 42.450|
|52 Week Range||39.700 - 50.900|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
(Bloomberg Opinion) -- How do you sell happiness? Fosun International Ltd., the largest shareholder of now-defunct Thomas Cook Group Plc, apparently does just that. In the first half of 2019, this Chinese conglomerate generated 31 billion yuan ($4.36 billion) in sales and 1.8 billion yuan in profit from its “Happiness” business, which consists of tourism, fashion and consumer lifestyle. The existential mumbo jumbo doesn’t end there. Fosun also counts Wealth and Health among its major business units. Fosun has been a busy buyer over the last five years, with $18 billion of deals at home and abroad, according to data compiled by Bloomberg. Under the Happiness umbrella alone, there was luxury resort Club Med SAS, which Fosun bought in 2014 for $1.3 billion; an 18% stake in Tsingtao Brewery Co.; French fashion house Jeanne Lanvin SAS; and German clothing retailer Tom Tailor Holding SE. But the collapse of Thomas Cook, a 178-year-old British travel agency, has raised questions about whether the private-equity-style investment house is able to provide any value to its portfolio companies – and if so, how to assess it. It’s almost impossible for investors to calculate Fosun’s return on capital at the brand level, or discern which part of its acquisition strategy is actually working. When it comes to valuing financial conglomerates, investors tend to rely on a sum-of-the-parts analysis. If they can't figure out what each part is worth, they’ll start to assign a deep conglomerate discount. Over the years, Fosun’s value by this measure has depreciated, and the company now trades at a 30% discount to book. In the long term, the company’s opaque structure will only derail its ambitions as an investment powerhouse.By comparison, the financials of SoftBank Group Corp., another acquisitive conglomerate, are a lot easier to parse (and that’s saying something). Investors can go straight to the company’s website to see the market capitalization of major listed stocks the company holds. Its major acquisitions, such as Sprint Corp., ARM Holdings Inc., and the many startup shares it has bought via the $100 billion Vision Fund, are displayed as separate business segments in its income statement. There is one thing Fosun is good at: recycling its investments. In its 2018 upgrade report, Moody’s noted that Fosun completed 26.8 billion yuan of new deals and disposed of 27.2 billion yuan of assets the year before. And the spin continues. Despite Hong Kong's political turmoil, the company has managed to raise $410 million from its listing of Shanghai Henlius Biotech Inc. In December, the firm listed Fosun Tourism Group, which held the company’s equity stake in Thomas Cook. But neither a fast metabolism nor a busy recycling schedule can make investors fall in love – or mask a private-equity wannabe that can’t offer a clearer picture of its return on capital. Perhaps a corporate restructuring would be a more concrete fix than attaining happiness.-Nisha Gopalan contributed to this column.To contact the author of this story: Shuli Ren at email@example.comTo contact the editor responsible for this story: Rachel Rosenthal at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Hong Kong’s IPO market is unexpectedly coming back to life. It may be a brief revival.Companies from Anheuser-Busch InBev SA’s Asian unit to Megvii Technology Ltd. aim to raise more than $10 billion selling shares before the year is out. It’s a turnaround that appeared improbable as recently as mid-August, when the Hang Seng Index erased its gain for the year amid anti-government protests and concerns over weakening global growth.Hong Kong’s benchmark stocks gauge has bounced 8% since Aug. 13, among the best-performing indexes worldwide in that period, as traders bet that China’s government will try to buoy investor spirits in the run-up to Oct. 1, when the country celebrates the 70th anniversary of the founding of the People’s Republic. That’s created a window of opportunity for companies that previously struggled to generate enough investor interest.Budweiser Brewing Company APAC Ltd. is the prime example. The unit of AB InBev, the world’s largest brewer, pulled what would have been the world’s biggest initial public offering in mid-July after failing to draw sufficient demand for the $9.8 billion sale. The company is back with a pared-down $5 billion offering and aims to list by the end of September, Carol Zhong, Julia Fioretti, Jinshan Hong and Crystal Tse of Bloomberg News reported last week, citing people familiar with the matter.The brewer is seeking to list minus its Australian operations, which the company agreed to sell to Asahi Group Holdings Ltd. for $11.3 billion soon after withdrawing its IPO in July. That hived off a slower-growing part of its operations, which may help attract investors who balked at Budweiser Brewing’s valuation last time around.Other than a rising stock market, a simple technical reason may account for the brewer’s haste to try again. A company that seeks to list within six months of its first application doesn’t need to prepare a new set of accounts, meaning Budweiser Brewing can just strip the Australian operations from its financials when pitching to investors this time around.Others lining up at the IPO well include Megvii, a Beijing-based artificial intelligence startup that’s seeking $1 billion; consumer lender Home Credit NV, which is targeting as much as $1.5 billion; Chinese sportswear retailer Topsports International Holdings Ltd., which aims to raise about $1 billion; and ESR Cayman Ltd., a logistics real estate developer backed by Warburg Pincus that earlier shelved a $1.2 billion deal. The first to list of the current crop may be biotechnology firm Shanghai Henlius Biotech Inc., which has already started taking orders for a $477 million sale.The biggest flotation of all may come in October, when New York-traded Alibaba Group Holding Ltd. will seek to raise as much as $15 billion in a secondary listing, Reuters reported last month.The resurgence in the IPO market is a tonic for Hong Kong Exchanges & Clearing Ltd., which has faced skepticism over its $36.6 billion bid for London Stock Exchange Group Plc and whose shares have dropped 16% from this year’s high. Hong Kong has slipped in the pecking order of global stock exchanges after topping the rankings in 2018. Companies raised $10.8 billion in IPOs this year through Sept. 13, less than half of the total in the same period last year.The question is whether there will be enough investor demand to soak up all the stock that an eager and growing group of listing candidates is waiting to thrust on buyers. Meanwhile, Hong Kong’s economy is deteriorating and the protests haven’t gone away. Companies must also consider whether China’s feelgood efforts will extend beyond Oct. 1.Time may be of the essence for this crowd. To contact the author of this story: Nisha Gopalan at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.