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<Research>JPM: AIA's MCV Overhang Priced In; Focus Shifts to Growth
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AIA (01299.HK) shares have experienced sharp swings over the past two weeks, declining 7.5% (vs a 2.2% drop in the HSI over the same period), dampened by concerns over tighter cross-border regulation, JPMorgan said in a research report. While risks related to Mainland Chinese Visitors (MCVs) may persist for some time and create uncertainty, such concerns have largely been priced in. The recent pullback has prompted investors to reassess the risk/reward. JPMorgan stated that the market focus is no longer on whether MCV risks exist, but rather on whether investors are overly underestimating AIA’s broader growth and cash generation capabilities. As MCV business accounts for only 21% of the group’s NBV, the remaining nearly 80% from non-MCV operations remains broadly on track. JPMorgan maintained its forecasts for AIA’s OPAT growth at 10% YoY and 12% YoY for FY2026 and FY2027, respectively. Although ahead of the summer earnings season the broker relatively preferred CHINA LIFE (02628.HK) and PING AN (02318.HK) in its Overweight list, AIA’s valuation at historical trough levels should help limit downside risk. JPMorgan reiterated its Overweight rating on AIA and maintained its TP at HKD112. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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