UBS: Maintains "Buy" rating on AIA (01299) with target price lowered to HK$91

UBS released a research report stating that it rates AIA (01299) as a "buy", with the tax after-tax profit for 2024 to 2026 of AIA increasing by 1%, decreasing by 3%, and remaining unchanged, with the target price being lowered from HK$93 to HK$91. The bank predicts that AIA's new business value last year was $4.77 billion USD, expecting a 19% increase year-on-year at fixed exchange rates and an 18% increase at actual exchange rates, compared to a 22% and 20% increase in the first nine months of last year. The bank believes that the slowdown in growth in the fourth quarter of last year was mainly due to the impact of the company's business in mainland China and Singapore. In China, like other local competitors, the company faced some sales pressure during the quarter and may revise its economic forecasts. According to the bank, it is expected that AIA's after-tax operating profit for last year will increase by 6.6% to $6.622 billion USD when calculated at actual exchange rates, meaning a 10% increase year-on-year in the second half of the year. The bank estimates that AIA's dividend per share increased by 7.1% to HK$1.73 last year, and investors are paying attention to the company's additional share buyback plan.