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<Research>HSBC Global Research Decreases AIA (01299.HK) TP to $89; 1Q VONB Strong
Recommend 18 Positive 46 Negative 13 |
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HSBC Global Research noted in a report that AIA (01299.HK) reported a strong 31% YoY growth in value of new business (VONB) on a constant exchange rate (CER) basis in 1Q24, outperforming the 24% QoQ growth rate, with all business segments reporting double-digit growth during the period. AIA announced an increase in the size of its share buyback programme to US$12 billion, implying buybacks of US$4.8 billion for the period from the end of 2023 to the end of April 2025, and the Company revealed a target dividend payout ratio of around 75% of annual net free surplus generation. The broker forecasted normalised DPS growth of 6% per annum for AIA, and expected the company to repurchase about US$100 million of shares per annum, leading to a free surplus of US$14.1 billion by 2026 and a capital ratio of 224%. HSBC maintained its Buy rating on AIA and trimmed its target price from HK$100 to HK$89. The broker also lowered its net profit after tax and net profit forecasts under IFRS for this year by 1% and 2% respectively, and dropped its DPS forecasts for 2024/25/26 by 2%, 4% and 5% to HK$1.71, HK$1.81 and HK$1.92. The broker's VONB and annual premium equivalent forecasts were meanwhile raised by 1%. AAStocks Financial News |
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