AIA Group 1299 02 (Jun 20 - Dec 27)

[winston]

not vested

And so it begins

AIA has obtained approval to convert its China operations into a subsidiary from a branch, with this to help future expansion in its biggest market.

We had flagged this previously as a one of three near-term catalysts. Others were a GBA travel bubble and approval to enter into new regions in China.

We continue to believe that AIA could obtain regulatory approval to enter into another new region in China in 2H20F or early 1H21F, based on our analysis.

Reiterate Add. Our GGM-based TP remains at HK$80.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... A50ED657A6

[winston]

not vested

HSBC Global Research Assumes AIA (01299.HK) 1H20 NBV to Drop 30% YoY; Rated Buy

HSBC Global Research in its report assumed AIA (01299.HK) 1H20 NBV to drop 30% yearly, equivalent to 31% year-on-year fall in 2Q.

Investors were expected to focus on the strategic update from the new CEO; mainland China licence applications; and the NBV outlook etc..

The broker restated Buy on AIA at the target price $87.

Source: AAStocks Financial News

[winston]

not vested

<Blue Chip Results>AIA (01299.HK) Interim VONB Slips 37%, Missing; Interim DPS HK35 Cents

AIA (01299.HK) announced the results for the six months ended 30 June 2020.

Value of new business fell 37% YoY to US$1.41 billion on a constant exchange rate basis, missing estimates.

According to brokers' forecasts as compiled by our reporters, AIA's 1H20 VONB may reach US$1.587 billion in median, down 30.2% YoY.

The insurer's net profit plunged 34.6% YoY to US$2.197 billion in the first half of 2020, with EPS of US0.18 cents.

Interim DPS rose 5% to HK35 cents.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>BofAS: AIA (01299.HK) Interim VNB Misses; Should Eye Long-term Growth Prospect

BofA Securities mentioned in its report that AIA (01299.HK) had delivered 1H20 VNB down by 38%, deeper than 29% as expected by the broker, given lower VNB margin which dropped by 11.1 ppts YoY to 54.4%.

The broker kept Buy on AIA at the target price $82.5, calling on investors to focus on its long-term growth prospect.

Source: AAStocks Financial News

[winston]

vested

AIA plans to fast-track China expansion under new president, pins hopes on easing Covid-19 restrictions

Newly appointed president Lee Yuan Siong eyes more licences to expand business in China, targeting 10 to 12 provinces, from three currently

In June, its Shanghai branch won regulatory approval to be incorporated as AIA’s only wholly owned subsidiary. Group chief executive and president Lee Yuan Siong said the Shanghai subsidiary was planning to apply for more licences to expand to other provinces, including Sichuan and Henan.

The expansion plans come even as new business in China fell 13 per cent to US$594 million in the first half.

Currently, apart from Shanghai AIA also has a presence in three provinces – Jiangsu, Guangdong and Hebei, and three cities – Beijing, Tianjin and Shenzhen.

Amid the pandemic, the company said over 40 per cent of the policies in the second quarter were issued digitally through video conferencing tools and mobile signatures.

Source: SCMP

https://www.scmp.com/business/companies ... oronavirus

[winston]

vested

The toughest quarter

1H20 value of new business (VONB) fell 38% yoy, materially lower than both our and consensus forecasts, with 2Q20 VONB down 49% yoy.

HK and Malaysia were the weakest markets in 1H20, with their VONB down 68% and 38% yoy respectively.

AIA guides for ‘strong positive VONB momentum’ ahead, as it recovers from the lows of Mar/Apr/May, with a much better performance in Jun and Jul.

We reiterate our Add rating, but cut our TP to HK$81 as we lower our FY20F22F VONB estimates by 1.6-15.6%.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... AAB3C90589

[winston]

vested

AIA Group Ltd (1299 HK) - Staying focused on its growth plans

AIA is the largest independent listed pan-Asian insurance provider with presence in 18 markets and offering a diversified products range including life, accident, health insurance and retirement savings plans).

2019 value of new business breakdown:
1. Hong Kong 37% (vs 2018’s 41%)
2. China 26% (vs 2018’s 23%)
3. Thailand 11% (flat)
4. Singapore 8% (vs 2018’s 9%)
5. Malaysia 6% (flat)
6. Others 12% (vs 2018’s 10%).

We view AIA as a beneficiary of the rise of Asia’s middle class (particularly China) with growing protection and wealth accumulation needs.

Prudent management, strong execution and well-trained agents, drive sustainable new business growth and margin expansion from higher margin products.

Although low rates and potential uncertainties in HK is expected to weigh on group performance this year, its longer term structural drivers of China expansion & Asia middle income exposure remain intact. BUY.

Source: OCBC

[winston]

not vested

What’s New

AIA China contributed 38% of total VONB in 1H20 and outpaced AIA HK’s contribution for the first time

Additional VONB contribution from China’s market liberalisation to reach Rmb2.6bn by FY26F

Lower VONB forecasts by 15% for FY20/21F on COVID-19 impact but revise up AIA China’s VONB growth by 6-8%

Roll over valuation base to FY21F, and revised up TP to HK$92, based on our two-stage EV growth model

Source: DBS

https://researchwise.dbsvresearch.com/R ... giiikfhgbh

[winston]

not vested

JPM Cuts AIA (01299.HK) TP to $94; Rated Overweight


Ahead of AIA (01299.HK)'s 3Q20 operational data release dated November 9, JPMorgan foretold new business value down by 29% yearly to US$700 million, mainly attributable to business interruptions from the coronavirus pandemic across Asia.

The broker retained Overweight on AIA at the target price $94, cut from $96, to reflect slackening business trend in 2H20.

C Suisse Hikes AIA (01299.HK) TP to $90; Rated Outperform

Source: AAStocks Financial News

[winston]

not vested

Thailand-related concerns overdone

AIA’s share price underperformance due to investor concerns about the impact of Thailand’s protests on its operations looks overdone to us.

An analysis of past states of emergencies in Thailand suggests there is little to be concerned about, from an operational and share price point of view.

The recent movements in both bond yields and exchange rates have been favourable to AIA.

Reiterate our Add rating with a slight increase in GGM-based TP to HK$86

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... AD80F96B94