Lyon: The target price of AIA (01299) was slightly raised to HK$124, got out of the worst and reaffirmed as the preferred stock of China and Hong Kong Finance

The Zhitong Finance App learned that Lyon released a research report stating that it will adjust the profit test for AIA (01299) from 2026 to 28, raise the company's target price from HK$123 to HK$124, renew the “outperform the market” rating, and reaffirm that it is the first choice for financial stocks in Hong Kong and China.

The bank believes that AIA has gotten out of the worst (Out of the Woods) and that the first half of the year's results are still resilient against market and regulatory headwinds. The value of the new business increased 13% year-on-year in real exchange rates, 10% at the fixed exchange rate, and profit from after-tax operations beat market expectations by 5%. The value of new business in the Hong Kong market rose 10% year on year under a high base, slightly lower than market expectations. Supported by a 23% increase in the local sector, CMV sales remained generally flat. Looking ahead, the bank believes that the investment community will increasingly focus on AIA's capital efficiency, compound profit growth, and shareholder returns. AIA is evolving from a net growth insurance company to a compound capital growth enterprise.