Analyst Nika MA of CMB International Securities reiterated a Buy rating on AIA Group (AAIGF – Research Report), reducing the price target to HK$89.00.
Nika MA has given his Buy rating due to a combination of factors that highlight AIA Group’s strong financial performance and promising growth prospects. The company reported robust growth in its Value of New Business (VONB), which increased by 18% year-over-year, indicating a healthy expansion in its core business operations. Additionally, AIA Group’s Operating Profit After Tax (OPAT) showed a solid increase, supported by strategic share buybacks that enhanced earnings per share.
Moreover, AIA’s commitment to returning value to shareholders is evident through its substantial dividend payouts and share repurchase programs, which are expected to continue contributing to total shareholder returns. The company’s expansion plans, particularly in mainland China, and the strong demand for wealth management services in Hong Kong and Singapore, further bolster its growth outlook. The stock’s valuation, trading near historical lows, combined with a positive operating return on equity, reinforces the Buy recommendation, with a target price adjusted to HK$89.
In another report released on March 14, DBS also reiterated a Buy rating on the stock with a HK$100.00 price target.
AAIGF’s price has also changed moderately for the past six months – from $6.980 to $8.045, which is a 15.26% increase.
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