Core Viewpoint - The stock price of FWD Group has experienced significant volatility since its IPO, reflecting market sentiment and performance pressures, with a recent decline bringing it close to its initial offering price [1][3]. Group 1: Stock Performance - FWD Group's stock was listed at an initial price of 38 HKD per share on July 7, 2023, but opened below this price on its first day, indicating weak market reception [1]. - After fluctuating around 38 HKD for over a month, the stock saw a nearly 30% increase starting August 27, reaching a peak of over 50 HKD, before falling back to around 40 HKD by mid-September [3]. - The stock's recent decline is attributed to pressures from the industry and market sentiment, particularly due to increased volatility in the bond market and uncertainty in equity market contributions to profits [3]. Group 2: Financial Performance - FWD Group reported a net profit of 47 million USD in its first interim results post-IPO, which initially boosted investor confidence [3]. - However, Goldman Sachs forecasts a full-year net profit of only 36 million USD, indicating a pessimistic outlook for the company's second half of the fiscal year [3]. - The company has faced substantial losses in previous years, with a reported loss of 716 million USD in 2023, primarily due to adverse capital market conditions [5][6]. Group 3: Business Strategy and Debt - FWD Group has historically relied on debt for operations and acquisitions, with a debt ratio reaching 87.31% in 2024, which may impact future profitability [6]. - As of April 30, 2025, the company had 2.786 billion USD in borrowings, including significant amounts from bank loans and issued notes [6]. - The company acknowledges the need for ongoing investment to meet reporting requirements and improve governance, but this may lead to continued financial losses if new revenues do not cover expenses [5][6]. Group 4: Market Expansion and Customer Base - FWD Group has expanded its operations from three markets to ten, including Hong Kong, Thailand, Japan, and emerging markets in Southeast Asia [7]. - The company has not yet entered the mainland China market but has benefited from sales to mainland visitors, with significant new business value generated from this segment [7]. - The new business sales from mainland visitors grew 6.3 times from 2022 to 2024, highlighting the potential for future growth in this area [7].