Bank of America Securities: Initial rating for FWD (01828) is "buy" with a target price of 43.2 Hong Kong dollars. Expected VNB growth rate surpasses peers.

Bank of America Securities released a research report stating that it has initiated coverage on FWD (01828) with a "buy" rating and a target price of 43.2 Hong Kong dollars. FWD is a regional life insurance company with operations spanning 10 markets in the Asia Pacific region, including Hong Kong, Thailand, Japan, and ASEAN countries. The bank expects the company's new business value (VNB) growth to reach 17% to 19% in the next two to three years, higher than the 10% to 15% growth of large industry peers. In addition, FWD has begun optimizing its capital and financing structure to enhance profitability. Currently, the stock is valued at only 0.6 times the forecast P/EV for 2026, a 50% discount to industry leader AIA (01299). The bank anticipates that through business and profit growth, this valuation gap is expected to narrow.