JPMorgan's analyst rating of Overweight for FWD (01828.HK) is based on several key factors:
1. Compelling Growth Story: The broker believes that FWD has a strong growth potential, expecting its new business value to achieve consistent growth of 10% over the next two years.
2. Operating Profit Growth: JPMorgan anticipates an operating profit compound annual growth rate (CAGR) of 16%, indicating robust profitability prospects.
3. Projected New Business Value: The forecast for FWD's new business value for FY2027 is set at US$1.1 billion, which is comparable to AIA's new business value of US$1.2 billion in 2012, suggesting strong market positioning.
4. Valuation: The current share price is viewed as being at a discount to its reported embedded value, which the broker considers to be inexpensive, further supporting the positive rating.
Overall, these factors contribute to JPMorgan's positive outlook on FWD's future performance and valuation.
