In a report released today, Ken Shih from DBS reiterated a Buy rating on AIA Group (AAIGF – Research Report), with a price target of HK$100.00.
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Ken Shih has given his Buy rating due to a combination of factors that highlight AIA Group’s strong performance and growth potential. The company reported a 13% year-over-year increase in the value of new business (VONB) for the first quarter of 2025, surpassing market expectations despite challenges in the Chinese market. This growth was driven by robust performances in regions such as Hong Kong, Thailand, Singapore, and TATA AIA.
Additionally, AIA Group’s recent announcement of a $1.6 billion share buyback program is expected to provide short-term support to the share price. The company has also demonstrated strong underlying growth in China, with a significant increase in the number of active new agents and a focus on high-net-worth segments, which positions it well for future growth. The group’s new business contractual service margin (CSM) grew by 16% year-over-year, indicating a positive trend that could lead to increased insurance service revenue. These factors, combined with the company’s market leadership in the Asia-Pacific region, underpin Ken Shih’s Buy recommendation.