Morgan Stanley targets AIA (01299) at 81 Hong Kong dollars with a "buy" rating.

Morgan Stanley released a research report stating that AIA (01299) first-quarter new business value (at fixed exchange rates) increased by 6.9%, mainly supported by a 7.3% increase in average capital return rate (APE) and flat gross profit at 54.2%. The bank believes that the slowdown is temporary and continues to estimate that the new business value will grow by 12% in the first half of this year and for the whole year, believing that the company's valuation is attractive. The bank gave the company a target price of HK$81 with a "hold" rating. The bank pointed out that growth was dragged down by the mainland, with a projected 8% decrease in new business value due to assumptions changes, but forecasted that comparable benchmarks will achieve growth, and expects the full-year new business value to grow by around 10% this year. The bank also predicted that new business value growth in Thailand could reach 28%, mainly driven by the expansion of profit margins through the increase in new business premiums of CKH Holdings, with Hong Kong, China expected to achieve a historical high after the pandemic, achieving a growth of 13%.