Goldman Sachs reiterates "buy" rating on AIA (01299) with a target price of 94 Hong Kong dollars.

Goldman Sachs released a research report stating that it reiterated a "buy" rating on AIA (01299) with a target price of HK$94. The bank mentioned that it is focusing on the growth prospects in mainland China, as the group has received approvals for 4 provincial branches in the fourth quarter, expected to start operations in the first half of this year. Goldman Sachs pointed out that AIA will announce its fourth-quarter and full-year performance next month, believing that the momentum of growth in the new business value of the group has not changed. It is expected to grow by 19% and 20% in the fiscal year 2024, calculated in actual exchange rates (AER) and fixed exchange rates (CER), respectively. The bank also predicts that the group's after-tax operating profit will increase by 14% in the second half of the year, and by 8% for the full year of last year. The bank predicts that the dividend per share for the second half of fiscal year 2024 will increase by 5%, with a regular buyback amount of $763 million. In addition, the bank expects to buy back an additional $2 billion in shares this year for its ongoing periodic review and to repay part of the excess capital. The bank estimates that the total capital ratio for fiscal year 2024 will be 245%, well above the target of 200%.