The report from "Major Banks" raised AIA's target price to 85 yuan and continued to recommend "Hold," expecting growth to slow down in the next five years

HSBC Global Research report indicates that AIA (01299.HK) saw its new business value (VONB) increase by 15% year-on-year in the fourth quarter of last year at constant exchange rates, a slowdown compared to the 18% growth in the first nine months of the year, seemingly affected by weakened business momentum in Hong Kong and mainland China. Although the performance was not particularly outstanding, the newly announced USD 1.7 billion share repurchase plan is a positive surprise.

The bank has lowered its new business value forecasts for 2026 and 2027 by 2% to 3% to reflect last year's performance falling short of expectations; however, the net profit forecast for 2026 has been raised by 19%. The target price has been increased from HKD 80 to HKD 85, maintaining a "Hold" rating, with expectations that the company's growth will slow in the next five years