Goldman Sachs: Target price of HK$42 for “buy” rating for FW Group (01828)

The Zhitong Finance App learned that Goldman Sachs released a research report stating that it gave Fuwei Group (01828) a target price of HK$42 and a “buy” rating. The bank indicates that the company's new business value (VNB) for the first half of the year exceeded expectations, mainly reflecting the increase in profit margins in various regions (including Hong Kong, China, Japan, and Thailand).

According to the report, after incorporating the results for the first half of 2026 and the latest management guidelines, the bank raised the 2026 VNB forecast by 8%, mainly due to: sales and profit margins in the Hong Kong market, which continued to grow; the growth momentum of the Japanese market continued to be strong.

Goldman Sachs raised its 2026 new business value forecast by 8% and slightly adjusted the 2027-2028 forecast by 2% to 3%. Overall, the 2026-2028 New Business Contract Service Margin (NBCSM) forecast was raised by 1% to 8% as a result. However, due to factors such as rising interest rates, slowing return on investment, and foreign exchange conversion losses, Goldman Sachs slightly lowered its intrinsic value forecast by 1% for 2026 to 2028.