Goldman Sachs believes that AIA needs to disclose more future shareholder returns and the impact of interest rate cuts on mainland business.
The Zhitong Finance App learned that Goldman Sachs released a research report saying that considering that the risk-return rating of AIA Insurance (01299) is more attractive, the target price is HK$98, and the target price is HK$98. The expected compound annual growth rate of operating profit after tax from 2024 to 2026 is 11%, and the total shareholder return this year (taking into account dividends and repurchases) means that the yield reached 7.7%, or short-term support for stock prices.
According to the report, the company will release operating data for the first quarter before the opening of the market on the 29th of this month. It is expected that the new business value will maintain strong growth, increasing 23% at a fixed exchange rate and 19% at the actual exchange rate, mainly driven by strong growth in Hong Kong, the Mainland and Thailand. AIA's stock price has fallen 28% since announcing its 2023 results. The current price is equivalent to 1.5 times the market account rate forecast for this year, 1.2 times and 1.3 times compared to European and American life insurance companies, respectively. I believe this reflects investors' concerns about shareholder return policies and the growth performance of mainland business. The bank believes that the company needs to disclose more future shareholder returns and the impact of interest rate cuts on mainland business.