[ET Net News Agency, 9 November 2018] Deutsche Bank lowered its target price for AIA
(01299) to HK$74 from HK$76.2 and maintained its "buy" rating.
The research house said AIA reported 3Q18 VNB of US$979mn (+16% YoY, +17% on CER), was
in-line with consensus ranging from 14-18% but below DB's estimates by 2% which was at
high-end.
The growth was driven by both margin expansion (+2.7ppt to 61.1%) and ANP growth of 11%
to US$1,582mn. Key drivers were Hong Kong and Other Markets, both of which achieved strong
double-digit VNB growth, China and Thailand also delivered double-digit VNB growth,
Singapore was relatively muted and Malaysia was the weak spot, recording a YoY decline.
Taking into consideration potential investment market weaknesses and potentially weaker
consumer demand, DB lowered its 2018/19/20 VNB growth forecasts by 2.5%/4.2%/5.7%,
and EV by 1.1%/1.4%/1.8% to factor in investment market weaknesses and potentially weaker
consumer demand. (KL)