AIA's 1H Results, Outlook Don't Warrant Share-Price Reaction

Dow Jones08-20

0642 GMT - AIA Group's in-line 1H results and encouraging outlook for the Hong Kong-mainland China cross-border business don't warrant the drop in its shares, say Jefferies analysts in a note. The shares fell over 2% before paring losses to last trade 0.3% lower at 72.75 Hong Kong dollars. The insurer's 1H return on embedded value hit a record high, they note. AIA's chief executive confirmed confidence in its outlook and strong customer demand in Hong Kong during its earnings call, which Jefferies says reinforced its upbeat view on the company. While debate on cross-border flows remains present, "nothing has changed in more than two decades, and structural growth drivers are intact," Jefferies adds. Jefferies maintains its buy rating and HK$111.00 target price.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment