Goldman Sachs Raises AIA (01299) Target Price to HK$84, Reiterates "Buy" Rating

Stock News
Aug 25

Goldman Sachs released a research report stating that AIA's (01299) first-half results were largely in line with the firm's expectations. The highlight was the mainland business growth prospects, with profit margins still expanding despite headwinds from the interest rate environment. AIA has also set ambitious growth targets for new mainland branches obtained since 2019. After factoring in the first-half results and reflecting recent investment market performance, the firm has fine-tuned its forecasts, lowering AIA's fiscal 2025 net profit by 7%. The target price has been slightly raised from HK$83 to HK$84, with a "buy" rating reiterated. The report noted that due to AIA China's low penetration rate and differentiated distribution capabilities, management remains optimistic about the mainland business growth prospects. Following Edmund Tse's return as non-executive chairman, management expects him to focus on improving board governance, strategy, and leadership development.

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