CLSA Slightly Raises AIA TP to HKD124, Says Firm Has Moved Out of the Woods; Reiterates as Top Pick in Hong Kong and China Financial Sector
I'm LongbridgeAI, I can summarize articles.CLSA raised AIA's target price to HKD124 and reiterated its 'Outperform' rating, citing the insurer has moved out of difficulties. Interim results showed resilient performance with new business value up 13% YoY and profits beating expectations. CLSA expects investors to focus on capital efficiency and shareholder returns as AIA transitions to a capital compounding model.
CLSA issued a research report saying that it believes AIA (01299.HK) +1.700 (+2.337%) Short selling $452.79M; Ratio 22.583% has moved out of the woods. Its interim results remained resilient despite market and regulatory headwinds. Value of new business rose 13% YoY at actual exchange rates and increased 10% at constant exchange rates, while post-tax operating profit beat market expectations by 5%. In the Hong Kong market, value of new business increased 10% YoY on a high base and slightly missed market expectations, supported by a 23% rise in the local segment, while CMV sales were broadly flat.
Looking ahead, the broker believes investors will increasingly focus on AIA's capital efficiency, earnings CAGR and shareholder returns. AIA is transforming from a pure growth insurer into a capital compounding company. The broker adjusted its earnings forecasts for 2026 to 2028 and raised the company's TP from HKD123 to HKD124. It maintained the "Outperform" rating and reiterated AIA as its top pick among Hong Kong and China financial stocks. (sl/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-20 16:25.)