Daiwa: Raise target price of AIA to HKD 96, expecting 19% increase in new business value in the first half of the year.

Morgan Stanley released a report, expecting AIA to grow its new business value in the first half of 2025 by 19% at fixed exchange rates, with a 26% growth in the second quarter, mainly driven by strong performance in Hong Kong operations. Various key indicators are expected to maintain a healthy growth trend, but the mid-term performance is not expected to announce a new round of share buyback plans. Based on business performance, Morgan Stanley has raised AIA's full-year new business value growth forecast for 2025 at fixed exchange rates, from a slight increase of 13.3% to 14.5%, although operating profit may be affected by an increase in tax rates. Overall, despite market volatility and challenges posed by the implementation of GMT accounting standards, the bank believes that AIA's financial indicators will continue to be stable and further improve from 2024. Morgan Stanley has raised AIA's target price from HK$91 to HK$96.