Goldman Sachs: AIA Group's quarterly new business value significantly exceeded expectations and outperformed peers, rating "Buy"
Goldman Sachs released a research report stating that it currently sets a target price of HKD 85 for AIA Group, with a rating of "Buy." AIA's new business value in the third quarter increased by 25% and 27% year-on-year at fixed and actual exchange rates, respectively, significantly exceeding the bank's and market forecasts of a 17% year-on-year increase at actual exchange rates. This is mainly due to AIA's new business value in Hong Kong reaching a record high for the quarter, as well as strong growth in new business value in mainland China. In other markets, Thailand saw double-digit growth and Singapore experienced strong growth, both in line with expectations. Malaysia recorded positive growth, exceeding expectations. However, new business value in other markets remained flat year-on-year, falling short of expectations, primarily due to greater-than-expected drag from the Australian and Taiwan markets. The bank indicated that, given the significant outperformance of quarterly new business value, and outperforming the closest peers, it expects AIA's stock price to react positively after the earnings announcement. Additionally, AIA's quarterly new business contract service margin increased by 25% year-on-year, which will continue to drive profit growth and free surplus generation
According to the Zhitong Finance APP, Goldman Sachs has released a research report stating that it currently sets a target price of HKD 85 for AIA Group (01299) with a rating of "Buy."
In the third quarter, AIA's new business value increased by 25% and 27% year-on-year at fixed exchange rates and actual exchange rates, respectively, significantly exceeding the bank's and market's forecast of a 17% year-on-year increase at actual exchange rates. This is mainly due to AIA Hong Kong achieving a record high in new business value for the quarter, as well as strong growth in new business value in mainland China. In other markets, Thailand saw double-digit growth and Singapore experienced strong growth, both in line with expectations. Malaysia recorded positive growth, exceeding expectations. However, new business value in other markets remained flat year-on-year, falling short of expectations, primarily due to greater-than-expected drag from the Australian and Taiwan markets.
The bank indicated that, given the significant outperformance of quarterly new business value compared to expectations and outperforming the closest peers, it expects AIA's stock price to react positively after the earnings announcement. Additionally, AIA's quarterly new business contract service margin grew by 25% year-on-year, which will continue to drive profit growth and free surplus generation
