In today’s briefing:
- FWD Group IPO: The Investment Case
- StoneCo: How Product Innovation & Bundled Solutions Are Building Merchant Loyalty!
FWD Group IPO: The Investment Case
- FWD Group Holdings (FWD HK) is a pan-Asia insurer that has filed its PHIP to raise around US$500 million.
- FWD initially aimed for an NYSE IPO in 2021 to raise US$2-3 billion at a US$13-15 billion valuation. An HKEx listing in 2022 was shelved due to market conditions.
- This note outlines the investment case. My analysis suggests that the fundamentals are mixed as FWD is rapidly growing its new business, but at the expense of its margin.
StoneCo: How Product Innovation & Bundled Solutions Are Building Merchant Loyalty!
- The first quarter of 2025 has presented a robust performance for StoneCo. The company’s financial health is highlighted by a strong year-over-year gross profit growth of 19%, outpacing the 14% guidance for annual gross profit growth.
- This notable growth is attributed mainly to effective repricing execution and a reduction in average funding spreads, bolstered by a significant 36% increase in adjusted EPS.
- StoneCo has emphasized a disciplined execution strategy, which includes repricing initiatives in response to the evolving yield curve.
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