JPMorgan Keeps Overweight Rating on FWD, Target Price HK$48

Deep News09-29 18:31

JPMorgan has released a research report maintaining its target price of HK$48 and "Overweight" rating for FWD (01828), updating its model to reflect the company's strong first-half performance, recent macroeconomic changes, and post-earnings operating trends. The bank raised its forecasts for new business value (NBV), operating profit (OPAT), contract service margin, and net free surplus generation to reflect stronger execution, though these were partially offset by higher risk-free rates and year-to-date local currency movements against the US dollar.

FWD has rebounded significantly since its 2026 first-half results announcement, rising 17%, while the Hang Seng Index fell 3% over the same period. JPMorgan expects the stock's upward momentum to remain positive, driven by steady trends in the Hong Kong market, diversified offshore business with growing contributions from non-mainland Chinese visitors, a gradual recovery in the Thai economy in the second half of 2026, and continued growth momentum in the Japanese market amid rising bond yields.

The bank forecasts FWD's fiscal 2027 new business value at US$1.221 billion, representing 11% year-on-year growth, and operating profit at US$761 million, up 19% year-on-year.

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