Daily Investment Strategy
Recommended Stock：AIA（1299）
AIA announced that AIA China has received approval from the Shandong Regulatory Bureau of the NFRA to establish a branch in Shandong Province. AIA's CEO expressed his pleasure at receiving regulatory approval to expand business into Shandong, following the approval for AIA China to establish a new branch in Anhui. After entering Shandong as planned, AIA will reach 60% of the life insurance market in mainland China. Looking ahead, AIA has more room for development in the mainland market. AIA Group's interim attributable profit to shareholders was US$3.3bn, up 47.29% yoy. Calculated at constant exchange rates, the new business value (NBV) increased by 25% to US$2.455 billion, reaching a new historical high; the NBV margin was 53.9%, up 3.3ppts from the 1H23, driven by favorable product mix changes and repricing in Hong Kong and Mainland China. The group's target for the compound annual growth rate (CAGR) of post-tax operating profit from 2023 to 2026 is 9% to 11%, reflecting confidence in the future business growth prospects. Overall, AIA's results have exceeded expectations, and the management's guidance is positive. Target price: $69; Stop- Loss price: $57.
Big tech earnings eyed
This week is the busiest week of the third-quarter earnings season. This is also the week before the U.S. presidential election on Nov 5 and the Federal Reserve meeting on Nov 7. The market is also paying attention to a series of key economic data this week, including third-quarter GDP data released on Wednesday; September PCE released on Thursday; and October non-agricultural data will be released on Friday, any signs of weakness in the labor market may influence the Fed's decisions.
Hong Kong Stock Connect had a net inflow of HK6.28bn on Monday of which Alibaba (9988) had the largest net inflow, reaching HK$1.71bn; followed by Xiaomi (1810). China Mobile (941) recorded the largest net outflow at HK$0.58bn, followed by Sunac (1918).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
