AIA Group 1299

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<Research Report>AIA (01299.HK) kept at Buy, target price lifted to $44.82 - UBS

UBS said in a report that stock market's performance between November 2013 and May 2014 was mixed, so it may affect AIA (01299.HK)'s 1H2014 profit. In this regard, AIA's after-tax net profit forecast for FY2014 was reduced by 16%.

The bank noted that the rapid new business value growth in Thailand, Malaysia and China may offset the sluggish performance in South Korea as the Korean regulator banned the insurance industry to engage in direct sales.

After adjusting the new business value estimates, AIA's target was slighted lifted from $44.48 to $44.82.

The Buy rating was maintained unchanged for the stock, and the bank still believed the group's new business value may see a high double-digit growth.

Source: AAStocks Financial News

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Brokers latest ratings & TPs for AIA (01299.HK) (Table)

AIA (01299.HK) -0.300 (-0.575%) Short selling $217.43M; Ratio 9.040% announced results for the first quarter ended 28 February 2015.

Its value of new BUSINESS increased 20% year-on-year to US$425 million based on real exchange rates, in line with market expectations.

VONB margin was up 3 ppt yearly to 46.8%.

The latest INVESTMENT ratings and target prices given by nine securities brokers for AIA were listed out as follows:

Broker / INVESTMENT Rating / Target Price (HK$)
Kim Eng / Buy / 65
Credit Suisse / Buy / 53.5->60
BofA Merrill Lynch / Buy / 58
Deutsche Bank / Buy / 51.6->55.5
JP Morgan / Overweight / 55
Bernstein / Outperform / 55
Citigroup / Buy / 54
UBS / Neutral / 53.75
Goldman Sachs / Conviction Buy / 52


Source: AAStocks Financial News

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<Research Report>M Stanley: AIA (01299.HK) target raised to $58; still has room for development of HK biz

Morgan Stanley, in its report, stated that the market generally considered Hong Kong's insurance market is mature with a high intensity of insurance companies and a high overall penetration rate.

Nevertheless, major companies such as AIA (01299.HK) had achieved an over 20% NBV growth during 2011 to 2014. The broker considered there is still room for the development of Hong Kong businesses.

Firstly, in Hong Kong, lots of people did purchase short-term savings products. That is distorting the life insurance penetration ratio. The data from the local government showed that less than 40% of Hong Kong people have health insurance coverage.

Secondly, Hong Kong has one of the most professional and productive agency teams in the region. The professional career model also helps attract younger generations to join the profession.

Last but not least, the Mainland tourism business can further promote the robust growth in the insurance industry.

The broker said that there is a strong and resilient growth in AIA whose balance sheet is solid with high-quality management.

The target price of AIA was lifted from $53 to $58 (12% upside) and the rating was maintained at Overweight.

Source: AAStocks Financial News

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Aberdeen Asset Cuts AIA (01299.HK) Shares for $318M

Aberdeen Asset Management reduced 6.2262 million shares of AIA (01299.HK) -1.400 (-2.677%) Short selling $60.79M; Ratio 5.760% by way of on-floor trading last Thursday (21 May) at an average price of $51.075 per share which represented a transaction of $318 million, according to HKEX records.

Upon completion, Aberdeen Asset Management's stake in AIA dropped from 5.01% to 4.96%.

AIA's stock plunged 2.5% or $1.3 this morning and last traded at $51, with turnover of $790 million, dragging down the Hang Seng Index by about 47 pts.

Source: AAStocks Financial News

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C Suisse: AIA Is Quality Stock in Asian Insurance Sector; Kept Outperform

Credit Suisse made a detailed comparison between Asian franchises of AIA (01299.HK) +1.500 (+2.921%) Short selling $106.29M; Ratio 16.208% and PRU (02378.HK) +2.800 (+1.449%) .

Given the breadth of coverage, strength of scale and strong cash flow generation, the broker felt positive on both stocks, saying that both companies are playing a leading roles in various aspects like execution, and it is believed that they may enjoy advantages when the industry is conducting a consolidation.

The broker maintain the AIA's rating at Outperform with a target price of $60.

Moreover, Credit Suisse deemed that AIA is 'pure quality' exposure in the Asian insurance sector given that its business is in the fast-growing ASEAN region.

AIA should have long-term investment value and provide defensiveness in this market environment.

Source: AAStocks Financial News

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<Research Report>AIA 1H15 Value of New Business Expected to Gain 21% to US$958M - G Sachs

AIA (01299.HK) is scheduled to unveil its 1H15 results on Friday (24 July).

Goldman Sachs expects AIA to record new business value of US$958 million, up 21% year-on-year on actual currency basis.

OPAT and NPAT are likely to reach US$1.5 billion and US$1.8 billion, with DPS of HK$0.19.

The research house forecast that Hong Kong and China will lead the growth, mainly due to active agents in 2014 which set a good foundation in 2015.

Goldman Sachs also anticipated apparent improvement in Thailand and Malaysia.

AIA's target price was kept at $60, with a rating of Buy.

Source: AAStocks Financial News

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<Research Report>M Stanley Expects AIA Interim Operating Profit After Tax to Rise 14%; VoNB Up 20%

AIA (01299.HK) is set to unveil its interim results as of end May this Friday (24 July).

Morgan Stanley estimated the company's 1H operating profit after tax to rise 14% year-on-year to US$1.67 billion, higher than the 7% TWPI growth due to its on-going efficiency gains and profitability.

The research house anticipated AIA to deliver VNB growth of 20% in 1H to US$950 million (same as the first quarter).

Geographically, regulatory and peers' data pointed to very strong sales in Hong Kong and China, where the VNB of the two regions is expected to post a surge of 30-40%.

Morgan Stanley also expects Thailand, Malaysia and other markets to deliver mid-teens VNB growth.

Source: AAStocks Financial News

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<Research Report>AIA's Investment Ratings & TPs (Table)

AIA (01299.HK) is scheduled to unveil its interim results for the year ended 31 May 2015 this Friday (24 July).

The following is the ratings and target prices of AIA given by 10 brokers:

Broker/ Investment Rating/ Target Price (HK$)
BNP Paribas/ Buy/ 63.82
Goldman Sachs/ Buy/ 60
Bernstein/ Outperform/ 59
HSBC/ Buy/ 59
Jefferies/ Buy/ 58.5
Bank of America Merrill Lynch/ Buy/ 58
Morgan Stanley/ Overweight/ 58
UBS/ Buy/ 57.5
Deutsche Bank/ Buy/ 55.5
Macquarie/ Underperform/ 42

Source: AAStocks Financial News

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AIA up on optimism

Shares of AIA Group (1299) rose more than 2 percent before half-year results are released today amid strong growth projections.

Brokers forecast the value of new business to surge between 19-24 percent for the six months ended May 31 due to strong business growth in Asia.

Net profit at the insurer could jump by up to 49 percent to US$2.18 billion (HK$17 billion) to US$2.30 billion, forecasts show.

Morgan Stanley expects value of new business in the mainland and Hong Kong to grow 36 percent and 33 percent respectively to US$346 million and US$153 million.

The two regions account for nearly half of the group's overall VNB, and are expected to have enjoyed the strongest growth of all.

Goldman Sachs maintained its "overweight" grade to HK$60.

JPMorgan said the stock may gain another 10 percent. AIA closed at HK$51.45 yesterday.


Source: The Standard HK

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<Result Ann>AIA (01299.HK) Interim Net Profit Grows 41%, In Line With Estimates

AIA (01299.HK) announced its results for the six months ended 31 May 2015.

Its net profit gained 41% year on year to US$2.18 billion, in line with the market estimates (ranging from US$2.177 billion to US$2.304 billion); or up 45% on constant exchange rates (CER).

Basic operating earnings per share increased 12% to US13.62 cents. Interim dividend increased 17% to HK$18.72 cents.

During the period, operating profit after tax was US$1.63 billion, up 12% year on year (market estimates: US$1.55 billion-US$1.67 billion); or up 15% on CER.

Source: AAStocks Financial News