AIA(01299) 海通国际·2024-08-27 07:47Investment Rating - The report maintains an "OUTPERFORM" rating for AIA Group with a target price of HKD 74.74, based on a valuation of 1.5x 2024E PEV, which corresponds to a fair value of USD 9.58 [10][38]. Core Insights - AIA Group reported a New Business Value (NBV) of USD 2.46 billion, representing a year-on-year increase of 25% [35]. - The Annualized New Premium (ANP) reached USD 4.55 billion, up 17% year-on-year, with a quarterly growth of 5.6% in Q2 2024 [35]. - The after-tax operating profit was USD 3.39 billion, a 7% increase year-on-year, while net profit surged by 53% to USD 3.31 billion [35]. - The embedded value stood at USD 68.2 billion, reflecting a 3% increase since the beginning of the year, with an operating profit of USD 5.35 billion, up 24% year-on-year [35]. Summary by Sections Financial Performance - AIA Group's insurance revenue for 2023 is projected to be USD 17.51 billion, a 7.32% increase from 2022, with net profit expected to reach USD 3.76 billion, marking a 13% growth [37]. - The company aims for a compound annual growth rate (CAGR) of 9%-11% in after-tax operating profit per share from 2023 to 2026 [35]. Distribution Channels - The agent channel saw a 19% increase in NBV, accounting for 71% of total NBV, while the partner distribution channel experienced a remarkable 43% growth [36]. - The number of agents increased by 22% year-on-year, with active agents rising by 6% [36]. Regional Performance - Hong Kong remains the largest contributor to AIA's NBV, accounting for 33% of total NBV with a 26% year-on-year increase [40]. - The mainland China market reported a 36% increase in NBV, with a 20% growth in the agent channel [40]. - The "New Malaysia Thailand" region also showed positive growth, with NBV increases of 27%, 14%, and 16% respectively [40]. Investment Strategy - AIA Group is shifting its investment strategy by reducing fixed income allocations while increasing equity investments [41]. - The annualized net investment return for the first half of 2024 was 1.8%, remaining stable year-on-year [41].