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Could This One-Stop Financial Supermarket Company Blast Off from Lows?




NASDAQ: AGBA


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Discover below why AGBA Group Holding Limited (Nasdaq: AGBA) could be a steal at these prices...

🔔 LATEST NEWS 🔔

June 05, 2023:

AGBA Group Comments on Its Share Price Performance Since Listing in November 2022

READ MORE HERE

5 Key Reasons on Why AGBA Group Holding Limited (Nasdaq: AGBA) is Poised for Growth.


✔AGBA holds the top position among life insurance brokers in Hong Kong, serving as one of the leading independent wealth management platforms in the region. Additionally, it ranks as the second-largest healthcare management organization in Hong Kong.


✔AGBA operates in rapidly expanding markets with great growth potential. It excels in the Wealth Life Insurance sector, ranking among the top five globally with an annual premium of 73 billion dollars. Additionally, AGBA stands out in Wealth Asset Management, boasting the third-highest wealth per adult globally, managing 4.5 trillion dollars in assets. In the Health Healthcare industry, AGBA is recognized as the most efficient provider, ranks eighth in innovation, and oversees an annual healthcare spending of 24 billion dollars.


✔Since AGBA's inception in 1979 and recent integration with JFA Health in 2021, AGBA has expanded its network to include over 1,200 doctors and 800 clinics. By combining forces, AGBA has positioned itself to dominate the market, offering high-quality treatment while effectively managing costs.


✔AGBA extensive network boasts more than 100 product vendors, 2,000 skilled financial advisors, and a thriving customer base of over 200,000 individuals. Also, with over $200 million in normalized revenue, AGBA is a force to be reckoned with in the industry.


✔ AGBA grants immediate access to GBA integration and expansion, with the Greater Bay Area encompassing 13% of China's economy, a US$2.0 trillion GDP, an 86 million population, all within a 2-hour living circle from Hong Kong.


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Company Information

AGBA, a prominent one-stop financial supermarket headquartered in Hong Kong, provides an extensive range of financial and healthcare products within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) through a technology-driven ecosystem. With a focus on client satisfaction, AGBA enables over 400,000 individual and corporate customers to access the most suitable choices. The group excels in four market-leading sectors: Platform Business, Distribution Business, Healthcare Business, and Fintech Business, further cementing its reputation as a trusted industry leader.

AGBA's Sectors Market Sizes

Hong Kong has a mature and growing life insurance market. Combining life and general insurance, Hong Kong ranks among the top 15 insurance markets in the world with total premiums of US$ 72 billion in 2021. Hong Kong has a large and thriving asset and wealth management industry. The latest available aggregate market data is for 2021. At that time, total AuM was equal to about US$ 4.5 trillion, increasing about 2% (despite the material market correction during the year) from the year before and almost tripling since 2012 (nine-year CAGR of about 12%). Healthcare expenditure in Hong Kong amounted to US$ 24.2 billion in 2020/21. On a per capita basis, spending was about US$ 3,400 (up from US$ 3,200 a year earlier). As a percentage of GDP went up from about 3.6% in 1989/90 to 7.3% in 2020/21.

Taking Health and Wealth to the GBA

AGBA is a financial services company based in Hong Kong that provides a diverse range of financial and healthcare products to the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). The GBA has a population of 86 million and boasts a vibrant economy valued at $2 trillion, accounting for 13% of China's GDP. Given the region's aging population and the growing demand for health and wealth products, expanding into the GBA is a strategic move for AGBA. The company is positioned to capitalize on increased sales opportunities with its extensive network of 1,528 independent financial advisors, the largest in Hong Kong. The recent lifting of COVID-19 restrictions further enhances the potential for sales recovery.

AGBA operates its Platform and Distribution Business, which distributes health and wealth products provided by asset managers and insurers. These products are offered to both retail and institutional clients through AGBA's independent financial advisor (IFA) network. Positioned as a comprehensive "one-stop financial supermarket," AGBA caters to the Chinese society's belief that health and wealth are the most crucial aspects of life. The increasing number of elderly individuals in the mainland, coupled with the limited state social safety net, has led to a strong demand for AGBA's products. As the sole provider of integrated health and wealth services in the GBA, AGBA has a promising opportunity to capitalize on the long-term trends of an aging population and a developing economy.


AGBA possesses a collection of fintech investments under its subsidiary companies. The company aims to generate profitable returns from these investments while also leveraging the acquired knowledge to enhance its proprietary technology, OnePlatform. OnePlatform serves as a tool for independent financial advisors (IFAs) to assist their clients and distribute health and wealth products. This platform offers comprehensive front-end client services, back-end operations support, and even educational courses for advisors.

Technical Analysis

AGBA currently has 62.9 million outstanding shares, out of which 14.2% are freely available for trading. The limited free float is a result of a reverse recapitalization process, wherein TAG, during the acquisition, received 53,835,000 ordinary shares of AGBA, establishing itself as a significant shareholder.

AGBA's stock price is starting to curl up amid a decent increase in the total traded shares which affirms people are expecting a short term bounce. With the stock trading for about $1.40 a share, while sitting at a big historical support zone, there is no doubt it could explode from here to over $2.00 as it remains highly undervalued at its current valuation.

Looking at the chart, we can see:


⋅ RSI is very low as we sit at lows of $1.40.


⋅ Volume starting to pick up as the price starts to curl.


⋅ Lots of support in the $1.35-$1.40 range. Over 4 big bounces from this zone.


⋅ Potential short term move to $2.00. A break over that should set us up for a potential squeeze to $2.80-$3.00

Support:

$1.35-$1.40


Resistance/targets:

#1: $1.85

#2: $2.00

#3: $2.80-$3.00

AGBA Group Holding Limited (AGBA): How Do They Operate Their Business?

AGBA operates through four divisions: Platform Business, Distribution Business, Healthcare Business and Fintech Business.


AGBA's Platform Business operates through its proprietary technology platform known as OnePlatform, which functions as a comprehensive "one-stop financial supermarket." OnePlatform hosts an extensive selection of over 1,800 products provided by global financial institutions, including banks, insurers, and asset managers. Licensed IFAs associated with AGBA can leverage these products to offer advice and services to their clients. The product range is broad and covers various areas such as life insurance, pensions, property-casualty insurance, stock brokerage, mutual funds, money lending, and real estate agency. Presently, OnePlatform accommodates 44 insurance providers offering 657 products and 44 asset managers providing over 1,000 products.


AGBA's Distribution Business encompasses the largest team of independent financial advisors in Hong Kong, comprising 1,528 registered advisors as of December 31, 2022. This business segment holds licenses as an insurance broker and a registered mandatory provident fund (MPF) intermediary in Hong Kong, enabling it to deliver financial planning and wealth management services to both individual and institutional clients.

AGBA's Healthcare Business comprises a strategic minority stake of 4% in HCMPS Healthcare Holdings (HCMPS) through one of its subsidiaries. This business operates under the brand name Dr. Jones Fok & Associates Medical Scheme Management (JFA) and holds a prominent position in the healthcare sector in Hong Kong, with a history dating back to its establishment in 1979. JFA operates four self-owned medical centers and maintains a network of over 700 healthcare service providers. Its clientele includes reputable companies spanning various industries, and it currently serves over 500 corporate clients, encompassing more than 300,000 members. In addition, JFA holds the leading position in Macau, serving approximately 70 clients. The extensive network and client base of JFA present opportunities for cross-selling supplementary products and driving revenue growth for the group.

AGBA's Fintech Business engages in investments in startup companies across the United States, Europe, and Hong Kong. While Exhibit 5 illustrates some of the group's investments, we would like to highlight two additional investments not included in the exhibit: Goxip, a fashion media platform based in Hong Kong, and LC Healthcare Fund, a healthcare and healthtech investment fund in the People's Republic of China (PRC). Through its fintech investments, AGBA gains valuable insights that can be utilized to modernize OnePlatform, enhance operational efficiency, and enrich its product offering. Additionally, these investments present the potential for lucrative returns. An example of this success is evident in the sale of its investment in Nutmeg Saving and Investment to JP Morgan for US$139.1 million in June 2021.

What Makes AGBA Group Holding Limited (Nasdaq: AGBA) Unique?

AGBA is strategically positioned to seize significant organic and inorganic growth prospects by leveraging the immediate access to GBA integration and expansion. The GBA region represents a substantial market with a GDP of USD 17 trillion, accounting for 13% of China's overall economy.


AGBA facilitates the seamless attainment of wealth and health by providing an extensive array of financial and healthcare products and services. These offerings are made available through a diverse range of internal and external distribution channels. Notably, AGBA boasts the largest team of licensed professionals in Hong Kong, further enhancing its ability to deliver comprehensive solutions to its clientele.


AGBA has developed an innovative, technology-driven ecosystem supported by its own proprietary system. This ecosystem seamlessly integrates cutting-edge financial and healthcare solutions into a single platform. By doing so, AGBA empowers distributors and clients to access a wide range of options and benefits, unlocking the best choices for their specific needs.


AGBA has consistently maintained regulatory compliance since 2006, holding both national and provisional operating licenses. The company has demonstrated operational excellence and credibility while operating under strict regulatory regimes.


AGBA is led by exceptional professionals who possess extensive industry knowledge and impeccable credentials. With more than two decades of experience in Platform, Distribution, Healthcare, and Fintech businesses, these leaders bring a wealth of expertise to guide the company forward.

Meet the Amazing Leadership Team That Are Driving AGBA Group Holding (NASDAQ: AGBA) to Success


On November 14, 2022, AGBA’s business was listed on NASDAQ through a business combination with a Special Purpose Acquisition Company (SPAC).


Jin Yi Lee - Senior Advisor

• Extensive experience in the banking industries with senior management position held

• Former deputy chairman of Lansen Pharmaceutical Holdings, CEO of Cathay International Holdings, and former managing director and CEO of Fubon Bank (HK).

• Managing Director, JP Morgan Asia. MBA, Harvard Business School


Wing-Fai - Group CEO


• Ran and transformed Fubon with the Tsai Family since 2000; formerly Managing Director of Fubon Financial Holding, overseeing its strategy, capital markets, merger and acquisition activities

• 30 years of track records in restructuring and transformation of financial institutions in Asia in investment banking and private equity; formerly Managing Director and Head of the Asia-Pacific Financial Institutions Group at Salomon Smith Barney

• MA, University of Cambridge and MBA, Harvard Business School


Desmond Shu - Acting Group CFO


• Over 20 years of experience in investment banking and financial services industry, including MIMB Investment Bank, SIBB Investment Bank, Primus Holdings (HK) and KPMG Corporate Services

• Focused on strategic management of investment and finance actions


Jeroen NieuwKoop - Group CSO

• Over 20 years of track record in private equity, mergers and acquisitions; previously worked at Fubon Financial and Primus Pacific Partners

• Key role to ensure smooth implementation of the Group’s strategic plans, enhance internal processes and management information systems to improve overall group supervision and decision making

Sources

• https://www.agba.com/ir/

• https://www.agba.com/media/2023/04/AGBA-Fact-Sheet-Investor-Release-6.pdf

• https://www.agba.com/media/2023/04/AGBA-Investor-Deck-041923_jn-2.pdf

• https://www.agba.com/media/2023/03/AGBA-Business-Highlights-202302307-1.pdf

• https://finance.yahoo.com/quote/AGBA

• https://www.nasdaq.com/market-activity/stocks/agba

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