[ET Net News Agency, 19 January 2018] UBS Global Research lifted its target price for
AIA Group (01299) to HK$71 from HK$68, but downgraded its rating to "neutral" from "buy"
on Hong Kong headwinds and valuation.
The research house believes AIA's growth outlook is largely priced in. It expects
near-term growth headwinds for AIA HK (43% of VoNB) where Rmb appreciation, an
increasingly regulated brokerage channel and a high base are key challenges. This could
drag down group VoNB growth to 9-12% in 2H 2017- 2H 2018.
UBS lowered its 2017-19 VoNB growth from 21-27% to 15-23%. (KL)