AIA Group 1299

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DJ MARKET TALK: AIA Fully Priced, Sell With HK$28.60 Target - CLSA

1118 [Dow Jones] CLSA says insurance accounting is as murky as muddy waters, noting that a product can yield a number of financial outcomes depending on methodology and assumptions.

To eliminate some confusion, it explores different valuation methods, but says they "all point to the same conclusion - AIA (1299.HK) is fully priced."

The house adds its other concern is the risk related to low interest rates, and although the insurer has made two acquisitions recently, the contribution isn't enough to drive fair value or offset the strain on policies in force; "we remain Sellers to a HK$28.60 target."

Source: Dow Jones & Company, Inc.

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AIA (01299.HK) reiterated OW with TP lifted to $38 by JPM

Although AIA (01299.HK)'s valuation is higher relative to peers, its growth outlook is attractive, said Morgan Stanley, who reiterated its Overweight rating for AIA.

Morgan Stanley continued to be upbeat about the medium-term growth outlook, balance sheet and overall risk return of AIA and raised its 2012-14 new business value forecasts for AIA by 1%, 7% and 9% respectively.

AIA's target price was lifted to $38 from $34.

Source: AAStocks Financial News

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DJ MARKET TALK: MS Raises AIA Target To HK$38.00; Superior Growth

0854 [Dow Jones] STOCK CALL: Morgan Stanley raises AIA's (1299.HK) target price by 12% to HK$38.00 and keeps the stock at Overweight.

It says valuation is one of the key pushbacks on AIA, which is trading at 1.4X FY13 P/EV and 19X operating P/E, making the stock expensive relative to peers, but "we find it attractive in light of AIA's own growth profile and relative qualitative appeal."

The house continues to favor AIA for its superior medium-term growth profile, balance sheet and overall risk-reward profile.


Source: Dow Jones & Company, Inc.

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Shareholder said to place 92.354M shr in AIA (01299.HK)

Mount Swettenham Investments reportedly is planning place 92.3542 million shares of AIA (01299.HK) at price ranging from $29.84 to $30.2, representing discount of up to 1.2% against the closing price today, cashing in $2.76 billion to $2.789 billion.

BofA Merrill Lynch is the sole bookrunner.


Source: AAStocks Financial News

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Let's peek at AIA (1299) today.

The group provides products and services to individuals and businesses for their insurance, protection, savings, investment and retirement needs.

For the fiscal year ended November 2011, value of new business rose 40 percent to US$932 million (HK$7.27 billion) over the previous 12 months.

Although AIA is a US firm, its major business lies in the Asia-Pacific region. Hong Kong is its biggest base of operations - accounting for 29 percent of total new business and 33 percent of operating profit before tax, while other big contributors are Thailand, Singapore, China and Malaysia.These five areas accounted for 85.6 percent of AIA's total new business in the last fiscal year.

Morgan Stanley has a target of HK$34 on the stock. It closed at HK$30.10 yesterday. Now is the time to buy.

Source: Dr Check, The Standard HK

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<Research Report>AIA (01299.HK) reiterated Buy by Deutsche

Deutsche Bank expects AIA (01299.HK) will post strong annual results with intrinsic value probably up 13.6% to US$30.95 billion.

It also predicts the net profit of AIA would have soared 77.6% to US$2.84 billion.

AIA was reiterated Buy with target slightly lifted to $37.8 from $37.5.


Source: AAStocks Financial News

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AIA (01299.HK) reiterated Overweight with target price lifted to $40 - HSBC

HSBC noted in a report that the rebound in total premiums, will become the main driving force for the future growth of AIA (01299.HK)'s new business value.

It believes that in the upcoming release of the 2012 results, this factor will be material.

The Bank reiterated the Overweight rating, with target lifted from $35 to $40.

It recommends investors may buy the stock before the result announcement on 27 February.


Source: AAStocks Financial News

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AIA earnings seen bright by Natallie Cai

AIA Group (1299) is expected to post strong profit growth for the last fiscal year, thanks to the growing value of new business and mark-to-market gains from stronger capital markets.

The largest Pan-Asian life insurer's net profit for the year to November may have reached US$2.82 billion (HK$22 billion), up 76 percent from a year earlier, according to an average estimate of three brokerages surveyed by The Standard.

The annual results are due on Wednesday.

Analysts believe the value of new business rose more than 23 percent after surging a record 22 percent in the third quarter.

The value of new business margin may have soared 44 percent due to sales of products carrying more protection coverage, and repricing of products in Thailand, China and Malaysia, CCB International analyst Kenneth Yue wrote in a recent report.

Yue expects the firm to have achieved an embedded value of US$30 billion, up 10 percent.

AIA's Thai business - which is recovering well from last year's floods - is likely to have driven up the new business value, Morgan Stanley said.

Deutsche Bank said the acquisition of ING Malaysia late last year could further boost the value of new business until next year.

The firm bought the ING arm in Malaysia for 1.33 billion euros (HK$13.60 billion).

The brokerages believe the robust performance in equity, bonds and Asian currencies last year enabled AIA to gain a high investment yield. CCB's Yue forecast a total investment yield of 6.6 percent, up from 2.2 percent.

But Morgan Stanley is worried that AIA share is shrinking in key markets due to a lack of exposure to bancassurance business through which insurers usually tap the sales resources of commercial banks.

AIA is expected to declare a final dividend of 4.8 US cents per share. The stock fell 0.5 percent to HK$31.95 last Friday.

http://www.thestandard.com.hk/news_deta ... 30225&fc=1

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AIA profit power greater than forecast by Grace Cao

Asia's third largest insurer, AIA Group (1299), posted a better-than-expected net profit of US$3.02 billion in the year to November 30 - up 89 percent on the previous 12 months as new business boomed in almost all of its markets.

The insurer beat the market estimation of a profit around US$2.6 billion, and shares soared by up to 4.3 percent to a record high since its IPO in 2010.

Earnings per share hit 25 US cents. So it declared a final dividend of 24.67 HK cents. The full-year dividend jumped by 12 percent from the previous term to 37 HK cents per share.

AIA's value of new business in the year - a main measure of value creation by an insurance firm - hit US$1.19 billion, up by 27 percent.

All its markets other than South Korea booked double-digit new business growth. Singapore and Thailand led.

Embedded value, an industry gauge for the value of a life insurance portfolio, rose 15 percent to US$31.4 billion.

Overall operating profit after tax hit US$2.16 billion, up by 12 percent.

AIA delivered a record performance, noted chief executive Mark Tucker. "We are confident about the future."

He pointed to the current dividend payout ratio as being at a "good level" that fitted well with AIA's bottom-line growth, and he highlighted the fact "we spent 99 percent of our time on organic growth" rather than acquisition.

This year, he added, "focuses will be on the integration of Malaysia and Sri Lanka businesses acquired last year."

ING's Malaysia life insurance - wrapped into AIA in December - is contributing revenue from the first quarter of this year.

The mainland, now AIA's fourth- largest market, is expected to replace Hong Kong as the biggest source.

AIA is also positive on South Korea, though new business value fell 8 percent year on year. And it plans to enter Burma with a representative office.

AIA shares closed at HK$32.85 yesterday, up by 4.12 percent.

http://www.thestandard.com.hk/news_deta ... 30228&fc=7

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<Research Report>AIA (01299.HK) kept Overweight, target lifted to $49 - HSBC

HSBC said in a report that it still picks AIA (01299.HK) as one of the top picks given the company's strong balance sheet, focus on creating value, robust growth in new business value, besides, its businesses are scattered in fast-growing regions.

The bank reiterated the Overweight rating on the stock with target price raised from $47 to $49.

It is believed that AIA has potential to increase shareholders' return and can benefit from the Shanghai-Hong Kong Equity Link.

Source: AAStocks Financial News