Citigroup raises AIA's target price to HKD 103, expects last year's new business value to grow by 19%

Citi published a research report predicting that AIA (01299.HK) will perform steadily in its fiscal year 2025, with the new business value expected to grow by 19% year-on-year in actual exchange rates (AER) (17% in constant exchange rates), primarily driven by growth in its businesses in Hong Kong, Thailand, and Singapore. The bank forecasts that AIA's operating profit last year grew by 8%, with earnings per share expected to rise by 12%, exceeding the guidance provided by management; the embedded value is expected to increase by approximately 12% year-on-year. The annual dividend per share is expected to increase by 10% to HKD 1.94, while the share buyback amount is predicted to reach approximately USD 1.3 billion. Accordingly, Citi raised AIA's target price from HKD 99 to HKD 103, with a rating of "Buy."