2024-08-23 03:13Investment Rating - The report maintains a "Buy" rating for AIA Group Limited, indicating a strong performance relative to the market [15][18]. Core Insights - The company reported impressive performance in 1H24, with a year-on-year increase in New Business Value (NBV) and Annualized New Premiums (ANP) of 25% and 17% respectively, despite a high base effect [15]. - The company has set a target for a compound annual growth rate (CAGR) of 9%-11% for earnings per share (OPAT) from 2023 to 2026 [15][18]. - The investment performance is strong, with total investment and fixed income asset yields at 4.9% and 4.3% respectively, showing a slight year-on-year increase [5]. Summary by Sections Performance Overview - In 1H24, the company achieved NBV of $24.55 billion and ANP of $45.46 billion, with respective year-on-year growth rates of 25% and 17% [15]. - The company’s net profit attributable to shareholders reached $33.14 billion, reflecting a year-on-year increase of 47% [15]. Market Segmentation - In Mainland China, NBV grew by 36% to $7.82 billion, driven by both individual and bancassurance channels [4]. - In Hong Kong, NBV increased by 26% to $8.58 billion, with local customers and MCV channels both contributing positively [16]. - Southeast Asia showed robust growth, with NBV in Singapore and Thailand increasing by 31% and 18% respectively [17]. Financial Metrics - The company’s total investment assets are well-matched with liabilities, with 73% of fixed income assets having a duration of over 10 years [5]. - The company’s PEV (Price to Embedded Value) ratio for 2024E is 1.39x, indicating a favorable valuation [18]. Future Outlook - The company plans to continue its regional expansion strategy, focusing on new branch performance as a long-term growth driver [4]. - The ongoing share buyback program, with $3.1 billion remaining, is expected to provide continuous support for the stock price [18].