[ET Net News Agency, 23 June 2020] Huatai Research initiated coverage on AIA Group
(01299) with a "buy" rating and target price of HK$90.
The research house said AIA presents a distinctive combination of world-class corporate
management and diversified exposure to insurance markets with high growth potential. It
has nurtured a productive sales team that sells profitable insurance products to affluent
and high-net-worth clients, a business model that seems simple but which has been
difficult for competitors to copy.
But COVID-19 and uncertainties in Hong Kong, its largest market, have hit AIA's business
growth significantly this year and its stock price has dropped 11% year-to-date. However,
Huatai believes China's opening-up policies give AIA a new, long-term structural growth
opportunity.
Huatai's estimated 2020 net profit for AIA is US$5,740mn, representing a 14% decline.
(KL)