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AIA Group (1299)
29-10-2010, 10:36 PM. (This post was last modified: 23-10-2013, 02:30 PM by CityFarmer.)
Post: #1
AIA Group (1299)
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Anyone bought into this counter?


HONG KONG (MarketWatch) , AIA Group Ltd. surged 17% in its debut Friday, overcoming broad weakness in the Hong Kong stock market, as investors cheered the pan-Asian life insurer's prospects in a region that, seen as largely untapped in terms of financial services.

AIA Group , formerly the majority-held Asian unit of American International Group Inc. , ended at 23.05 Hong Kong dollars ($2.97), up from its IPO price of HK$19.68. The gain stood in contrast with a weaker session for the Hang Seng Index , which ended 0.5% lower.

Brokers had expected the shares to perform well, though the first-day advance topped forecasts for the $17.8 billion initial public offering , Hong Kong's largest ever in terms of funds raised.

Earlier this year, U.K.-based Prudential PLC offered $35.5 billion for all of AIA but had to slash the size of the offer after its shareholders complained. The lowered bid was rejected by AIG amid concerns that Prudential's shareholders would vote down the deal even at the revised price.


I think the fact that Prudential was trying to buy it underscored to people that this was something worth having, said Andrew Sullivan, director of sales trading at OSK Securities in Hong Kong.

Indeed, investors said that they subscribed to Friday's offering partly because AIA offers exposure to 15 Asian markets, has strong brand recognition in the region and will be included in stock-market indexes.

They were also were upbeat on the prospects for insurance offerings such as mandatory retirement savings plans in the region's fast-growing markets, said Sullivan.

"A lot of people are looking at it like there's good growth here," he said.

The total funds raised from the IPO could balloon to as much as $20.5 billion if the issuers choose to exercise an option to make it bigger to meet demand.

First images of tsunami devastationRelief efforts have stepped up in Indonesia as aid reaches the worst hit areas of the Mentawai islands devastated by a tsunami. Video courtesy of Reuters.
New York-based AIG, which received billions under a U.S. government rescue in 2008, will retain an option to sell a further 1.05 billion shares, which could shrink its stake in AIA to 32.9%.

The size of the IPO was expanded by 1.17 billion shares from its original target of 5.86 billion shares, amid strong interest from investors.

AIG was forced to sell a majority stake in its Asian unit as part of efforts to restructure its business and pay back more than $120 billion owed to the U.S. government.

The IPO price valued the entire company at $30.6 billion, or about 1.2 times its estimated embedded value of $25.8 billion next year, according to reports which cited Goldman Sachs' calculations.

Unlike its competitors which rely on joint ventures and local partnerships, AIA owns most of it underlying branches and subsidiaries.

"It has a scale and scope in the Asia Pacific region that its competitors may find difficult to replicate," wrote analysts at Hong Kong brokerage Core Pacific-Yamaichi, in a note ahead of the debut.

The broker said AIA's solvency ratio had risen to 312% as of May, up from 188% in November 2007.

Industrial & Commercial Bank of China Ltd. which raised $16 billion from the Hong Kong portion of a dual Shanghai-Hong Kong share listing in 2006, held the previous record as the city's biggest IPO in terms of funds raised.

http://www.marketwatch.com/story/aia-gro...2010-10-28


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09-03-2011, 12:33 PM.
Post: #2
RE: AIA Group rises 17% in Hong Kong debut
The shares are traded at $23.60 today ( 9 Mar) and PE= 13.55 .

Citibank have marked up a target price of $27 but who is going to push the share price when there is no dividend declared for the shareholders ?

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09-03-2011, 12:54 PM.
Post: #3
RE: AIA Group rises 17% in Hong Kong debut
I seriously dislike those reports speculating the prices of the stocks.
I read them up and i found that majority of the reports didn't mark-up to the actual market prices.
Many times, not even near to what they predicted.
Maybe in long term wise, 2 to 3 years ? Yes i believe.

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27-02-2013, 10:13 AM.
Post: #4
RE: AIA Group rises 17% in Hong Kong debut
AIA’s 2012 profit rises 89%, beating estimates

HONG KONG — AIA Group reported a higher than expected 89 per cent growth in net income last year, helped by investments, stronger Asian currencies and product improvements.

Net income rose to US$3 billion (S$3.72 billion) in the 12 months to Nov 30 from US$1.6 billion a year earlier, the third-largest Asia-based insurer by market value said in a statement to the city’s stock exchange this morning. The number beat the US$2.7 billion average estimate of 12 analysts.

http://www.todayonline.com/business/aias...-estimates
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡

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27-02-2013, 04:38 PM.
Post: #5
RE: AIA Group rises 17% in Hong Kong debut
AIA to open representative office in Myanmar

HONG KONG — AIA Group Ltd, Asia’s third-biggest insurer, said today that it was planning to open a representative office in Myanmar, as part of a strategy of targeting demand in fast-growing South-east Asian economies.

AIA’s chief executive, Mark Tucker, told reporters on a conference call that the company had received “provisional approval” to open the representative office, which he described as a “listening and observing post”.

http://www.todayonline.com/business/aia-...ce-myanmar
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡

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19-02-2017, 05:56 PM.
Post: #6
RE: AIA Group (1299)
This company is due to report its annual results on 24 Feb 2017 and the "aastocks" website has posted the target share prices forecasted by 16 different brokers . The closing price on friday was $49.

12 brokers forecast their target share price above $50 and 4 brokers forecast the target price below $50 . The highest target price is $66 and lowest target price is $40.60.

http://www.aastocks.com/en/stocks/news/a...W.784062/1

I think only one broker can get it right ?

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27-02-2018, 12:02 PM.
Post: #7
RE: AIA Group (1299)
Last traded price as at Feb 27, 2018 11:45 AM GMT+8 : 66.05 HKD Up 2.90 HKD (4.59%)
Basic earnings per share were 51 US cents, up 47 per cent year on year.

AIA 2017 earnings top estimates, new business value at record high
Value of new business, a key gauge of the insurer’s future profitability, jumped 28 per cent to a record US$3.51b, while net profit increased 48pc to US$6.12b

By Laura He
PUBLISHED : Tuesday, 27 February, 2018, 8:42am
UPDATED : Tuesday, 27 February, 2018, 9:05am

AIA Group, the largest pan-Asian life insurer, on Tuesday reported better-than-expected earnings for 2017, while a key gauge of the company’s future profitability hit a new high, thanks to continued strong growth in new business in China and Hong Kong and a surge in investment returns because of capital market gains.

Net profit jumped 48 per cent to US$6.12 billion for the twelve months ended November 30 on a constant exchange rate basis, compared with US$4.16 billion a year earlier, the company said in a filing to the Hong Kong stock exchange.

On an actual exchange rate basis, profit increased 47 per cent from a year earlier.

Previously, market estimates for 2017 net profit were between US$4.5 billion and US$5.8 billion, up 8 per cent to 39 per cent from a year earlier.

More details in http://www.scmp.com/business/investor-re...ness-value
Specuvestor: Asset - Business - Structure.

http://www.valuebuddies.com
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15-03-2019, 07:37 PM.
Post: #8
RE: AIA Group (1299)
AIA reports 60 per cent drop in net profit for 2018, but records growth in Hong Kong and China new business
* Net profit down to about US$2.6 billion from about US$6.5 billion in 2017, with new business growing by 22 per cent
* ‘Very strong results’ achieved against backdrop of economic uncertainty and financial market volatility, says CEO

Enoch Yiu  
Published: 5:30pm, 15 Mar, 2019

AIA Group, the largest listed life insurance company in Asia-Pacific, on Friday reported a worse-than-expected 60 per cent decline in net profit for 2018, on the back of losses in value of stock and property investments.

Net profit for the year to the end of December stood at about US$2.6 billion, a drop of 60 per cent from about US$6.5 billion in 2017. The result was below Bloomberg analysts’ estimates of a 28 per cent decline to US$4.36 billion. Basic earnings per share stood at 21.6 US cents, which also missed an analysts’ forecast of 35.4 US cents.

Ng Keng Hooi, group chief executive and president at AIA, said the result was very strong “against a backdrop of economic uncertainty and financial market volatility”.

“I do not worry too much about net profit volatility, as it is mainly affected by the short term fluctuation of the stock and property markets,” Ng told the Post in an interview after the results announcement. “The cumulative operating after tax profit and net profit since our IPO are similar at about US$30 billion, which showed that our business could cope with short term volatility.”

The decrease in net profit at AIA was due to a valuation loss of US$2.06 billion in its equities and real estate investments, compared with a gain of US$2 billion in 2017, the company said in a stock exchange filing on Friday. Hong Kong’s benchmark Hang Seng Index fell 14 per cent in 2018, amid concerns over the US-China trade war, interest rate increases and fears of a slowing economy in mainland China. In 2017, it had reported a gain of 36 per cent.

The value of new business, he said, is a more important indicator for insurance companies, however, showed growth of 22 per cent, at US$3.96 billion, which beat a forecast by JPMorgan of 18 per cent growth to US$3.8 billion. The company’s operating after tax profit also rose by 13 per cent to about US$5.3 billion.

Shares in AIA, which was set up in Shanghai in 1919 by American Cornelius Starr, fell 1.6 per cent in early trading on Friday to HK$77.5 before narrowed down 0.3 per cent to close at HK$78.5. The 100-year-old company operates in 18 markets in Asia-Pacific, serving 33 million policyholders.

More details in https://www.scmp.com/business/companies/...rowth-hong
Specuvestor: Asset - Business - Structure.

http://www.valuebuddies.com
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16-03-2019, 08:20 AM.
Post: #9
Rainbow  RE: AIA Group (1299)
Agree.
FY18 was a particularly difficult year.

At least 2 financial bloggers reported that by the end of 2018, 
all the profits that they gain since 2014 was completely wiped out.

Both concluded that investment was under the category of "too tough".

Equally, the numbers of bloggers/blog post dropped significantly in 2019.

However, with the sharp bounced back of stock market,
increasing posts are coming out slowly but surely.

Optimism is back and all can start to smell roses again.

Back to AIA.
You saw the headline bad news?

Well, together in the same result announcement:
Dividend @ 84.80 HK cents vs 74.28 HK cents in FY17 (an increase of 14%)
plus Special @ 9.5 HK cents.

This tells you something already.

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