bearish

Pre-IPO FWD Group Holdings (PHIP Updates) - The Pain Points and the Outlook

650 Views24 Jun 2025 00:55
FWD turned losses around with capital market recovery/accounting adjustments. High goodwill will lead to high asset-liability ratio/liquidity risk, low dividend payout.Valuation to be lower than peers
What is covered in the Full Insight:
  • Introduction to FWD Group Holdings
  • Financial Performance from 2022 to 2024
  • Key Business Drivers and Market Expansion
  • Financial and Valuation Concerns
  • Strategic Outlook and Risks
Boomeranged on Mon, 7 Jul 2025 01:05
Based on IPO pricing of HK$38, P/B is 1x, lower than AIA (2.3x), Prudential (1.8x).But if based on embedded value (EV), P/EV of FWD, AIA, Prudential is 1x, 1.3x, 0.9x respectively. So, FWD's IPO price isn't cheap.Its valuation should be lower than AIA/Prudential due to concerns on M&A model.Since the market usually gives lower valuation to companies with high goodwill, shares upside may be limited
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