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AIA Group Limited (HK:1299)
:1299

AIA Group (1299) AI Stock Analysis

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HK

AIA Group

(OTC:1299)

71Outperform
AIA Group's overall stock score reflects its strong financial performance, underscored by robust profitability and strategic growth, particularly in China and Hong Kong. The company benefits from a solid valuation with an attractive P/E ratio and dividend yield. However, technical indicators suggest bearish market sentiment, which could be a short-term concern. Earnings call highlights indicate successful execution of growth strategies, although interest rate and currency challenges present potential risks.
Positive Factors
Market Position
AIA continues to strengthen its market-leading position in Thailand with full-year VNB growth at 15%.
Share Buyback
AIA announced a new buyback program of US$1.6bn, suggesting confidence in capital position and shareholder returns.
Negative Factors
Economic Growth Concerns
Slower-than-expected Chinese and Asian economic growth, decline in the VNB margin due to rising price competition, and capital market volatility diluting investment yield and capital resources.
Stock Performance
AIA’s share price underperformed the market and CN insurers despite resilient VNB growth and a solid financial position underpinning attractive shareholder returns.

AIA Group (1299) vs. S&P 500 (SPY)

AIA Group Business Overview & Revenue Model

Company DescriptionAIA Group Limited, together with its subsidiaries, provides life insurance based financial services. The company offers life insurance, accident, and health insurance and savings plans; and employee benefits, credit life, and pension services to corporate clients. It also distributes investment and other financial services products. The company sells its products through a network of agents and partners in Mainland China, Hong Kong, Macau, Thailand, Singapore, Brunei, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan, Vietnam, and India. AIA Group Limited was founded in 1919 and is based in Central, Hong Kong.
How the Company Makes MoneyAIA Group makes money primarily through the sale of insurance products and services, which include life insurance, health insurance, and accident insurance. Premiums collected from policyholders form the core revenue stream. The company also generates income through its savings and investment products, which provide clients with financial planning and wealth management solutions. AIA's profitability is further enhanced by its investment income, derived from managing the assets under its control, including premiums collected and reserves. This income is generated through interest, dividends, and capital gains from securities and other financial investments. Strategic partnerships and distribution agreements with banks and other financial institutions also play a significant role in expanding AIA's market reach and boosting its sales channels, further contributing to its revenue base.

AIA Group Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
20.99B20.59B17.76B46.36B50.85B47.95B
Gross Profit
20.99B19.76B17.76B46.36B50.85B47.95B
EBIT
6.05B5.75B5.38B8.01B8.36B8.47B
EBITDA
5.63B5.46B8.44B11.07B11.37B11.12B
Net Income Common Stockholders
4.83B3.76B3.33B7.43B5.78B6.65B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.21B100.14B8.02B3.91B4.40B3.19B
Total Assets
134.44B286.32B270.47B339.87B326.12B284.13B
Total Debt
766.00M12.16B11.21B9.64B7.87B5.92B
Net Debt
-1.45B640.00M3.19B5.73B3.46B2.73B
Total Liabilities
486.00M244.72B11.21B9.64B7.87B5.92B
Stockholders Equity
26.70B41.11B44.67B60.47B63.20B54.95B
Cash FlowFree Cash Flow
9.46B10.59B9.48B3.27B2.10B3.17B
Operating Cash Flow
9.46B10.92B9.87B3.91B2.36B3.34B
Investing Cash Flow
-1.55B-2.14B-817.00M-2.78B-1.22B-245.00M
Financing Cash Flow
-5.83B-6.07B-4.79B-1.66B392.00M-1.52B

AIA Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price54.45
Price Trends
50DMA
57.71
Negative
100DMA
56.62
Negative
200DMA
56.87
Negative
Market Momentum
MACD
-1.80
Positive
RSI
44.74
Neutral
STOCH
69.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1299, the sentiment is Negative. The current price of 54.45 is below the 20-day moving average (MA) of 55.94, below the 50-day MA of 57.71, and below the 200-day MA of 56.87, indicating a bearish trend. The MACD of -1.80 indicates Positive momentum. The RSI at 44.74 is Neutral, neither overbought nor oversold. The STOCH value of 69.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1299.

AIA Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$137.36B8.159.77%5.47%-43.77%
71
Outperform
$580.65B11.2916.75%3.02%7.04%88.41%
63
Neutral
$12.07B9.358.15%79.57%12.85%-5.13%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1299
AIA Group
54.45
5.38
10.95%
PIAIF
Ping An Insurance Company of China
5.54
1.32
31.28%
CHPXF
China Pacific Insurance (Group) Co
3.65
1.54
72.99%
CIADF
China Mengniu Dairy Co
2.52
0.48
23.53%
CILJF
China Life Insurance Co
1.78
0.56
45.90%
HK:1336
New China Life Insurance Co., Ltd. Class H
28.45
15.29
116.19%

AIA Group Earnings Call Summary

Earnings Call Date: Mar 14, 2025 | % Change Since: -13.30% | Next Earnings Date: Aug 21, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with record growth in key metrics and successful expansion efforts. However, challenges such as interest rate and currency impacts, along with regulatory changes in Korea, pose some concerns. The company's robust technology advancements and strategic positioning in growth markets like China and Hong Kong are significant positives.
Highlights
Record Value of New Business
Value of new business (VONB) was up by 18% to a record high of $4.7 billion, indicating strong growth momentum.
Increased Operating Profit After Tax
Operating profit after tax reached a record high, up by 12% per share, showcasing strong earnings growth.
Strong Performance in Key Markets
AIA Hong Kong and AIA China delivered VONB growth of 23% and 20% respectively, highlighting strong market performance.
Successful Geographical Expansion
Approval for four new branches in China adds another 100 million to the addressable market, doubling the target customer base to over 340 million.
AI and Technology Advancements
Significant investments in technology and AI, with over 50 use cases of Generative AI deployed, enhancing customer service and operational efficiency.
Lowlights
Interest Rate and Currency Challenges
Investment return variances were impacted by lower Chinese and Thai interest rates and currency translation into a stronger US dollar.
Regulatory Challenges in Korea
Changes to regulatory capital requirements in South Korea impacted financial performance.
Margin Pressures in China
Revised economic assumptions and a shift to participating products in China led to some margin pressure despite overall growth.
Company Guidance
In AIA's 2024 annual results call, the company reported strong financial performance with significant growth across key metrics. The value of new business (VONB) increased by 18% to $4.7 billion, while EV equity grew to $71.6 billion, a 9% rise per share after distributing $6.5 billion to shareholders. Operating profit after tax (OPAT) hit a record high with a 12% increase per share, and underlying free surplus generation (UFSG) rose by 10% per share. The Board recommended a 10% increase in the final dividend per share and announced a $1.6 billion share buyback. AIA's premier agency was a major growth driver, contributing 74% to VONB, with recruitment up 18% and agency VONB growth of 16%. The bancassurance channel also showed robust performance, with a 28% increase in VONB to $1.3 billion. AIA's operations in Hong Kong contributed a record $1.8 billion in VONB, up 23%, while AIA China achieved a 20% VONB growth to over $1.2 billion. The company's expansion in Mainland China continued, with approvals for four new branches, adding 100 million to its addressable market. Overall, AIA's financial results reflect the successful execution of its growth strategy, focusing on profitable new business and cash flow generation, while leveraging advanced technology and analytics to enhance efficiency and customer engagement.

AIA Group Corporate Events

AIA Group Launches $1.6 Billion Share Buy-Back Programme
Apr 11, 2025

AIA Group Limited has announced a US$1.6 billion share buy-back programme as part of its enhanced capital management policy. The programme will be executed by an independent broker under pre-determined parameters, allowing buy-backs during restricted periods with a waiver from the Hong Kong Stock Exchange. This move is expected to strengthen AIA’s market position and provide value to its shareholders.

AIA Group Announces 2025 AGM Agenda and Key Resolutions
Apr 8, 2025

AIA Group Limited has announced its upcoming annual general meeting (AGM) scheduled for May 23, 2025, in Hong Kong. Key agenda items include receiving the company’s audited financial statements for 2024, declaring a final dividend, re-electing independent non-executive directors, and re-appointing PricewaterhouseCoopers as the auditor. Additionally, the meeting will consider granting the board general mandates to issue shares, which could impact the company’s capital structure and shareholder value.

AIA Group Announces 2025 Restricted Stock Subscription Units Grant
Apr 2, 2025

AIA Group Limited has announced the grant of restricted stock subscription units (RSSUs) under its agency share purchase plan (ASPP) for the 2025 plan year. This initiative, involving 5,524 participants, aims to foster long-term engagement and a sense of belonging among agents by allowing them to own shares in the company. With an estimated 1,812,056 RSSUs to be granted, the plan aligns with AIA’s strategy to strengthen its market position and enhance stakeholder relationships by encouraging equity ownership among its agency leaders and agents.

AIA Group Grants Share Options to Drive Long-Term Value
Mar 20, 2025

AIA Group Limited announced the grant of 2,982,166 share options to select employees, directors, and officers under its share option scheme. These options, which are time-vesting and have no performance conditions, aim to drive long-term focus and shareholder value creation. The exercise price is set at HK$62.42 per share, with a vesting period from March 2025 to March 2028 and an exercise period from March 2028 to March 2035. The grant includes a clawback mechanism to ensure accountability and alignment with company performance.

AIA Group Reports Strong 2024 Financial Results with New Share Buy-Back Program
Mar 13, 2025

AIA Group Limited reported strong financial results for the year ending December 31, 2024, with significant growth in key metrics. The company achieved an 18% increase in the value of new business, a 12% rise in operating profit after tax per share, and a 10% increase in underlying free surplus generation per share. Additionally, AIA announced a new share buy-back program worth US$1.6 billion, reflecting its robust capital management strategy and commitment to returning value to shareholders.

AIA Group Announces Final Dividend for 2024
Mar 13, 2025

AIA Group Limited has announced a final ordinary cash dividend of HKD 1.3098 per share for the financial year ending December 31, 2024. The dividend will be paid on June 12, 2025, following shareholder approval on May 23, 2025. This announcement reflects AIA Group’s commitment to delivering shareholder value and may enhance its market position by demonstrating financial stability and rewarding investors.

AIA Group Updates Nomination Committee Terms
Mar 13, 2025

AIA Group Limited has updated the terms of reference for its Nomination Committee, which was initially established by the Board in 2010. The committee is responsible for overseeing the nomination process for directors, ensuring diversity, and maintaining a majority of independent non-executive directors. The updated terms outline the committee’s authority to investigate activities and seek necessary information from employees, emphasizing its role in maintaining corporate governance standards.

AIA Group to Review Annual Results and Dividend Proposal
Feb 20, 2025

AIA Group Limited has announced that a committee appointed by its board of directors will meet on March 14, 2025, to consider and approve the release of the company’s annual results for the year ending December 31, 2024. This meeting will also discuss the recommendation for the payment of a final dividend, highlighting the company’s ongoing commitment to shareholder returns.

AIA Group Completes US$12 Billion Share Buy-Back
Feb 12, 2025

AIA Group Limited has successfully completed a US$12 billion share buy-back program, repurchasing approximately 11.7% of its total issued shares. This strategic move reflects the company’s commitment to disciplined capital allocation and enhancing shareholder value in line with its capital management policy.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.