[ET Net News Agency, 31 July 2019] Goldman Sachs raised its target price for AIA Group
(01299) to HK$98 from HK$93 and maintained its "buy" rating.
AIA will release 1H results on 23 August. The research house forecast 2Q/1H VONB of
US$1,065mn/US$2,235mn, +14% on an actual exchange rate (AER) basis. This implies 17%
growth in 2Q on a constant exchange rate (CER) basis, versus 18% in 1Q.
Goldman marked-to-market AIA's investment portfolio, and raised 1H/FY2019 net profit by
6%/2% to reflect strong equity market performance. It also raised FY2019-21 book value by
7-12% to reflect bond value gains from the sharp decline in US bond yields in 2Q. It
expects an interim dividend of HK$0.33 per share. (KL)