tiprankstipranks
Trending News
More News >
AIA Group Limited (HK:1299)
:1299
Advertisement

AIA Group (1299) AI Stock Analysis

Compare
143 Followers

Top Page

HK:1299

AIA Group

(1299)

Select Model
Select Model
Select Model
Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
HK$79.00
▲(5.90% Upside)
AIA Group's overall stock score reflects strong earnings call performance and financial stability, offset by technical analysis indicating potential short-term weakness and challenges in cash flow generation. The company's strategic growth outlook in Asia and fair valuation support a positive long-term view.
Positive Factors
Strong Market Position in Asia
AIA's strategic focus on expanding in China and other Asian markets positions it well for long-term growth, leveraging its competitive advantages in distribution and product offerings.
Operational Efficiency
Record operational metrics indicate strong management and efficient use of resources, enhancing profitability and shareholder value over time.
Cash Generation Ability
Strong cash generation supports financial flexibility and the ability to invest in growth opportunities, ensuring long-term financial health.
Negative Factors
Revenue Growth Challenges
A decline in revenue growth can hinder AIA's ability to scale and compete, potentially impacting its market share and profitability in the long run.
Cash Flow Generation Issues
Challenges in cash flow generation could limit AIA's ability to fund new initiatives and maintain operational stability, affecting long-term growth prospects.
Regulatory Challenges
Regulatory changes in key markets like Malaysia can disrupt business operations and growth, necessitating strategic adjustments to maintain market position.

AIA Group (1299) vs. iShares MSCI Hong Kong ETF (EWH)

AIA Group Business Overview & Revenue Model

Company DescriptionAIA Group Limited (stock code: 1299) is a leading pan-Asian life insurance group headquartered in Hong Kong. Established in 1919, AIA operates across 18 markets in the Asia-Pacific region, providing a diverse range of insurance products, including life insurance, health insurance, and savings plans. The company is also involved in investment management and is committed to enhancing the financial well-being of its customers through comprehensive financial solutions and services.
How the Company Makes MoneyAIA Group generates revenue primarily through the sale of insurance products, which includes premiums collected from life and health insurance policies. The company earns money by charging policyholders for coverage, which is a significant portion of its revenue stream. In addition to premiums, AIA makes money through investment income generated from the assets it manages on behalf of policyholders. The company invests in a diversified portfolio of assets, including stocks, bonds, and real estate, which contributes to its overall profitability. AIA also benefits from fee income from asset management services and has established significant partnerships with various financial institutions, enhancing its distribution channels and expanding its market reach. Furthermore, the group's focus on digital transformation and innovation allows it to improve operational efficiency and customer engagement, driving growth in its earnings.

AIA Group Earnings Call Summary

Earnings Call Date:Aug 21, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance for AIA with significant growth in key markets such as Hong Kong, ASEAN, and India, along with record financial metrics. While there are some challenges, such as regulatory impacts in Malaysia and tax regime effects, the highlights significantly outweigh the lowlights.
Q2-2025 Updates
Positive Updates
Record Growth in Value of New Business
Value of new business (VONB) increased by 14% to $2.8 billion, setting a record high for the company.
Strong Performance in Hong Kong
Hong Kong achieved record VONB of $1.1 billion, up 24%, with strong demand from both domestic and Mainland Chinese visitors.
Exceptional Growth in ASEAN
ASEAN VONB grew by 20% to over $1 billion, marking it as the second largest growth engine for the company.
Impressive Performance in India
Tata AIA Life's VONB increased by 38%, reinforcing its position as the market leader in retail protection.
Successful Cash Generation
Underlying free surplus generation per share grew by 10%, and operating profit after tax per share rose by 12%.
Increased Shareholder Returns
Returned $3.7 billion to shareholders in the first half and declared a 10% increase in the interim dividend per share.
Strong Operational Metrics
Operating ROEV increased to 17.8% and operating ROE to 16.2%, both at record highs.
Negative Updates
Regulatory Challenges in Malaysia
Malaysia's VONB was impacted by an industry-wide review on health insurance, affecting agency channel growth.
Impact of Global Minimum Tax
The implementation of the OECD global minimum tax regime impacted the effective tax rate, aligning it with previous guidance.
Company Guidance
During AIA's 2025 Interim Results presentation, key financial metrics showed robust growth. The value of new business (VONB) rose by 14% to $2.8 billion, while underlying free surplus generation per share increased by 10%, and operating profit after tax per share grew by 12%. Operating return on embedded value (ROEV) improved by 290 basis points to 17.8%, and operating return on equity (ROE) reached a record 16.2%. The company returned $3.7 billion to shareholders, and the Board declared a 10% increase in the interim dividend per share. In Hong Kong, VONB was a record $1.1 billion, up 24%, driven by a diversified customer base and strong agency performance, with agency VONB up 35%. AIA China's VONB reached $743 million, with a 15% growth in the second quarter. AIA plans a compound annual VONB growth of 40% over the next five years in new Chinese regions. In ASEAN, VONB grew by 20% to over $1 billion, with strong agency and partnership performances. Meanwhile, Tata AIA Life in India delivered a 38% increase in VONB. AIA's strategic outlook focuses on leveraging its competitive advantages in distribution and product offerings to drive sustainable growth and shareholder value in Asia.

AIA Group Financial Statement Overview

Summary
AIA Group shows strong profitability with high profit margins and stable leverage. However, challenges in revenue growth and cash flow generation could impact future financial flexibility.
Income Statement
75
Positive
AIA Group displayed strong profitability with a consistent gross profit margin of 100% due to revenue equaling gross profit. The net profit margin improved significantly to 33.6% in 2024 from 18.3% in 2023, indicating enhanced profitability. However, the revenue growth rate was negative at -1.12% in 2024, suggesting a slight revenue decline. The EBIT and EBITDA margins were robust at 38.5% and 43.8%, respectively, in 2024, showing effective cost management and operational efficiency.
Balance Sheet
80
Positive
The company maintains a stable balance sheet with a debt-to-equity ratio of 0.34 in 2024, reflecting manageable leverage. Return on equity improved to 16.9% in 2024, indicating better profitability from shareholders' equity. The equity ratio was 13.3%, showing a stable equity position relative to total assets. Overall, the balance sheet exhibits financial stability with moderate leverage levels.
Cash Flow
60
Neutral
The cash flow from operations decreased significantly in 2024, impacting the operating cash flow to net income ratio, which dropped to 0.48. Free cash flow growth was negative, with a decline from 2023 to 2024. The free cash flow to net income ratio was 0.44, indicating a lower conversion of net income to free cash flow. These factors suggest potential challenges in cash flow generation despite profitability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.36B20.03B-24.96B46.90B50.85B
Gross Profit28.02B19.76B-18.87B46.36B50.85B
EBITDA8.92B5.46B4.84B9.22B11.37B
Net Income6.84B3.76B3.33B7.43B5.78B
Balance Sheet
Total Assets305.45B286.32B270.47B339.87B326.12B
Cash, Cash Equivalents and Short-Term Investments106.39B100.14B8.02B166.08B4.40B
Total Debt13.67B12.16B11.60B10.06B7.87B
Total Liabilities264.64B244.72B225.32B278.94B262.45B
Stockholders Equity40.49B41.11B44.67B60.47B63.20B
Cash Flow
Free Cash Flow3.03B10.59B9.48B3.27B2.10B
Operating Cash Flow3.26B10.92B9.87B3.91B2.36B
Investing Cash Flow-945.00M-2.14B-817.00M-2.78B-1.22B
Financing Cash Flow-5.69B-6.07B-4.79B-1.66B392.00M

AIA Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price74.60
Price Trends
50DMA
72.88
Positive
100DMA
71.58
Positive
200DMA
64.25
Positive
Market Momentum
MACD
-0.23
Negative
RSI
57.67
Neutral
STOCH
68.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1299, the sentiment is Positive. The current price of 74.6 is above the 20-day moving average (MA) of 72.62, above the 50-day MA of 72.88, and above the 200-day MA of 64.25, indicating a bullish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 57.67 is Neutral, neither overbought nor oversold. The STOCH value of 68.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1299.

AIA Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$1.14T5.4821.57%3.85%17.69%126.41%
HK$202.89B4.7334.37%5.37%49.90%203.77%
$61.03B7.4710.74%2.01%23.64%36.32%
$1.08T7.7712.80%4.99%12.05%32.41%
$744.16B16.2615.16%2.41%5.65%30.47%
$361.60B5.8817.37%3.60%13.82%39.75%
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1299
AIA Group
74.60
15.04
25.25%
HK:2318
Ping An Insurance Company of China
56.15
10.80
23.80%
HK:2601
China Pacific Insurance (Group) Co
32.18
5.88
22.37%
HK:2628
China Life Insurance Co
25.04
9.51
61.21%
HK:0966
China Taiping Insurance Holdings Co
17.07
3.79
28.57%
HK:1336
New China Life Insurance Co., Ltd. Class H
50.50
26.56
110.94%

AIA Group Corporate Events

AIA Group to Forfeit Unclaimed 2019 Dividends
Sep 30, 2025

AIA Group Limited has announced the forfeiture of unclaimed interim dividends from 2019, amounting to 33.30 Hong Kong cents per share, which will revert to the company if not claimed by October 31, 2025. This move is in accordance with the company’s Articles of Association and impacts shareholders who have yet to claim their dividends, urging them to contact the share registrar before the deadline.

The most recent analyst rating on (HK:1299) stock is a Hold with a HK$79.00 price target. To see the full list of analyst forecasts on AIA Group stock, see the HK:1299 Stock Forecast page.

AIA Group Announces Board of Directors and Committee Roles
Sep 30, 2025

AIA Group Limited has announced the composition of its Board of Directors and their roles within the company. This announcement highlights the leadership structure and committee assignments, which are crucial for the company’s governance and strategic decision-making. The board includes a mix of independent non-executive directors and executive directors, ensuring a balanced approach to oversight and management. This structure is expected to enhance AIA’s operational efficiency and strengthen its position in the competitive insurance market.

The most recent analyst rating on (HK:1299) stock is a Hold with a HK$79.00 price target. To see the full list of analyst forecasts on AIA Group stock, see the HK:1299 Stock Forecast page.

AIA Group Grants Share Options to Drive Long-Term Value
Sep 4, 2025

AIA Group Limited announced the grant of 126,621 share options to an employee of a subsidiary under its share option scheme. The options are aimed at driving long-term focus and shareholder value creation, with a vesting period from September 2025 to March 2028 and an exercise period extending to March 2035. The options have no performance targets but include a clawback mechanism to ensure alignment with company performance and integrity.

The most recent analyst rating on (HK:1299) stock is a Buy with a HK$91.00 price target. To see the full list of analyst forecasts on AIA Group stock, see the HK:1299 Stock Forecast page.

AIA Group Reports Strong Growth in H1 2025
Aug 21, 2025

AIA Group Limited is the largest independent publicly listed pan-Asian life insurance group, operating in 18 markets and offering a range of insurance and savings products to individuals and corporate clients. The company is headquartered in Hong Kong and is a market leader in Asia, excluding Japan, based on life insurance premiums.

AIA Group Reports Strong Growth in First Half of 2025
Aug 20, 2025

AIA Group Limited reported strong financial results for the first half of 2025, with a 14% increase in the value of new business (VONB) and a 12% rise in operating profit after tax (OPAT) per share. The company also announced a 10% increase in its interim dividend, reflecting its robust performance and strategic focus on leveraging growth opportunities in the Asian life and health insurance market. AIA’s success is attributed to its Premier Agency’s enhanced productivity and the expansion of its partnership distribution channel, which contributed to a significant increase in VONB.

The most recent analyst rating on (HK:1299) stock is a Buy with a HK$91.00 price target. To see the full list of analyst forecasts on AIA Group stock, see the HK:1299 Stock Forecast page.

AIA Group Announces Interim Dividend for 2025
Aug 20, 2025

AIA Group Limited has announced an interim dividend of HKD 0.49 per share for the six months ending 30 June 2025, with the payment date set for 23 September 2025. This announcement reflects the company’s ongoing commitment to delivering shareholder value and maintaining its strong financial performance, reinforcing its position as a key player in the insurance industry.

The most recent analyst rating on (HK:1299) stock is a Buy with a HK$91.00 price target. To see the full list of analyst forecasts on AIA Group stock, see the HK:1299 Stock Forecast page.

AIA Group to Review Interim Results and Dividend
Jul 31, 2025

AIA Group Limited has announced that a committee appointed by its board of directors will meet on August 21, 2025, to consider and approve the company’s interim results for the first half of the year ending June 30, 2025. The meeting will also discuss the potential payment of an interim dividend, reflecting the company’s ongoing financial performance and commitment to shareholder returns.

The most recent analyst rating on (HK:1299) stock is a Buy with a HK$88.00 price target. To see the full list of analyst forecasts on AIA Group stock, see the HK:1299 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 28, 2025