Equity Analysis /
Hong Kong

HK : AIA Group - Reassessing long-term growth potential

    Michael Chang
    Michael Chang

    Equity Research Analyst, Banks and Insurance

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    CGS-CIMB
    15 January 2021
    Published byCGS-CIMB

    We identify the twelve new regions AIA plans to enter in China by 2030F and incorporate into our forecasts the higher growth potential from these regions. We estimate these regions can help China 2020F VONB rise almost nine-fold by 2030F; hence, the need to reassess AIA’s long-term growth potential. AIA is also a clear beneficiary of US$ weakness and rising US bond yields. Reiterate Add. We raise our TP to HK$126, primarily on higher EVPS, EPS and a higher long-term growth rate ‘g’ within our GGM.