＜Research＞HSBC Global Research Slightly Cuts AIA TP to $89; PRU TP $119

　　AIA (01299.HK) +0.150 (+0.285%) Short selling $424.62M; Ratio 19.715% s share price has tumbled 25% YoY YTD, while PRU (02378.HK) -0.100 (-0.145%) Short selling $201.88K; Ratio 14.031% has slipped 23% YoY, according to a report released by HSBC Global Research. During the same period, the HSI and the CSI 300 were flat. The broker attributed the dismal performance of the stock prices to macro-unfavorable factors, geopolitical risks and negative consensus earnings revisions after the introduction of IFRS 17. However, the broker expected the two insurers to ride on incremental disclosures which better appreciate how NBV translates into growth in IFRS OPAT.

　　HSBC Global Research said that AIA will announce its 1H24 results on 22 August, and expected the NBV to be USD2.4 billion, an increase of more than 20% YoY, given the mainland and Hong Kong businesses. The broker estimated AIA's IFRS 17 OPAT to be USD3.4 billion, an increase of 4% and 6% compared to 1H24 and 1H23, respectively. The DPS was expected to be HKD0.45, up more than 6% YoY. The broker maintained its Buy rating on AIA and slightly reduced its TP from HKD90 to HKD89.

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　　HSBC Global Research said that PRU will announce its 1H24 results on 28 August, and expected the NBV to be USD1.5 billion, down more than 1% YoY. The IFRS 17 OPAT was forecast to be USD1.5 billion, up 2% YoY; DPS was expected to be USD6.8 cents, up 9% YoY. The rating on PRU was maintained at Buy with TP of HKD119.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-30 16:25.)

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