Goldman Sachs: Initiated a buy rating on AIA (01299) with a target price of 90 Hong Kong dollars.

Goldman Sachs released a research report stating that AIA (01299) will announce its 2025 operating targets before the opening on April 30th (Wednesday). It is expected that the Value of New Business (VONB) will grow by 7%, with the double-digit growth in Hong Kong and Thailand offsetting the decline in mainland China business and the weak growth in Singapore and Malaysia business. The 12-month target price is set at 90 Hong Kong dollars. The mainland China business saw a year-on-year decline, mainly due to pressure on profit margins and sales, including: a significant downward adjustment of long-term bond yield assumptions in the VONB calculation for 2025 fiscal year; a shift in product mix towards dividend-type products, resulting in lower profit margins but more stable profit flow; and the effect of a high base on sales. The bank believes that the risk-return profile is attractive, and AIA's balance sheet advantage can mitigate the downside risk in sales (affected by high tariffs) during market volatility.