Richard Xu, an analyst from Morgan Stanley, maintained the Buy rating on AIA Group (AAIGF – Research Report). The associated price target was lowered to HK$91.00.
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Richard Xu has given his Buy rating due to a combination of factors indicating AIA Group’s strong financial performance and potential for future growth. The company is on track to show significant growth in its key financial metrics, with an anticipated healthy 8% increase in operating profit after tax (OPAT) and a 15% rise in dividends per share, aided by a share buyback program. Furthermore, the expected 7% growth in embedded value (EV) for the full year 2024 suggests resilience in the face of fluctuating bond yields and mixed currency performances.
In addition to these positive financial indicators, AIA Group’s value of new business (VNB) is projected to grow by 20%, despite a slight slowdown in the second half of the year. This robust VNB growth, alongside the company’s completed $12 billion buyback program over the past three years and the potential announcement of a new $2 billion buyback, underpins Xu’s optimistic outlook. These elements position AIA Group favorably for 2025, making it an attractive investment opportunity according to Richard Xu’s analysis.