Bank of America Securities: AIA's (01299) new business value is expected to grow by 15% in the third quarter, maintaining a "buy" rating.

Bank of America Securities released a research report stating that AIA (01299) is expected to announce its operating data for the first three quarters of the year at the end of October. It is expected that AIA's new business value (VNB) for the third quarter and first nine months, calculated at actual exchange rates, will increase by 15% year-on-year. The current forecast for full-year growth is 14% to 15%. Potential upside may come from accelerated growth in China and smaller ASEAN markets. The bank maintains its target price of HK$90 and a "buy" rating. By market segment, the bank points out that VNB in the mainland China market rebounded in the second quarter and is expected to continue to grow in the third quarter, reaching 3% to 5%, showing a slight improvement on a quarterly basis. As for the Hong Kong market, the bank predicts that the growth in VNB from mainland visitors will slow down to 14% year-on-year, lower than the approximately 30% increase in the first half of the year, while VNB from local customers may continue to increase by around 20%.