Bocom Intl released a research report stating that it maintains a "buy" rating for AIA (01299) with a target price of HKD 84. The company has a balanced regional distribution, channel structure, and product structure, with sustained growth in new business value, operating profit, and shareholder returns. AIA's new business value continues to show strong growth momentum, with a 21% year-on-year increase in the first half, mainly driven by contributions from the Mainland and Hong Kong markets, and a 14.8% quarter-on-quarter increase in the second quarter.
The report states that AIA's operating profit maintains stable growth, with the company setting a target of 9-11% compound annual growth rate for OPAT per share from 2023 to 2026. The interim dividend per share increased by 5.2% year-on-year to HKD 0.445 in the first half, and the dividend payout ratio based on OPAT remains at around 50%. The shareholder returns are attractive and sustainable. The net free surplus increased by 5.6% year-on-year in the first half. The company's combined dividends and share buyback amount reached USD 3.4 billion in the first half, accounting for 4.4% of the current market cap.