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1299

AIA Group SEHK:1299 Stock Report

Last Price

HK$77.85

Market Cap

HK$927.1b

7D

1.4%

1Y

-16.2%

Updated

12 Aug, 2022

Data

Company Financials +
1299 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health4/6
Dividends4/6

1299 Stock Overview

AIA Group Limited, together with its subsidiaries, provides life insurance based financial services.

AIA Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AIA Group
Historical stock prices
Current Share PriceHK$77.85
52 Week HighHK$98.60
52 Week LowHK$70.15
Beta0.73
1 Month Change-6.04%
3 Month Change6.28%
1 Year Change-16.16%
3 Year Change2.43%
5 Year Change33.65%
Change since IPO237.74%

Recent News & Updates

May 20
AIA Group (HKG:1299) Is Paying Out A Larger Dividend Than Last Year

AIA Group (HKG:1299) Is Paying Out A Larger Dividend Than Last Year

AIA Group Limited's ( HKG:1299 ) dividend will be increasing to HK$1.08 on 10th of June. Although the dividend is now...

May 05
AIA Group's (HKG:1299) Upcoming Dividend Will Be Larger Than Last Year's

AIA Group's (HKG:1299) Upcoming Dividend Will Be Larger Than Last Year's

AIA Group Limited ( HKG:1299 ) has announced that it will be increasing its dividend on the 10th of June to HK$1.08...

Shareholder Returns

1299HK InsuranceHK Market
7D1.4%0.1%-0.05%
1Y-16.2%-20.0%-22.0%

Return vs Industry: 1299 exceeded the Hong Kong Insurance industry which returned -20% over the past year.

Return vs Market: 1299 exceeded the Hong Kong Market which returned -22% over the past year.

Price Volatility

Is 1299's price volatile compared to industry and market?
1299 volatility
1299 Average Weekly Movement4.0%
Insurance Industry Average Movement4.0%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.6%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 1299 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1299's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191923,000Yuan Siong Leehttps://www.aia.com

AIA 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.

AIA Group Fundamentals Summary

How do AIA Group's earnings and revenue compare to its market cap?
1299 fundamental statistics
Market CapUS$118.19b
Earnings (TTM)US$7.43b
Revenue (TTM)US$46.36b

15.9x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1299 income statement (TTM)
RevenueUS$46.36b
Cost of RevenueUS$34.65b
Gross ProfitUS$11.71b
Other ExpensesUS$4.28b
EarningsUS$7.43b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)0.62
Gross Margin25.25%
Net Profit Margin16.02%
Debt/Equity Ratio18.7%

How did 1299 perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

30%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 1299 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1299?

Other financial metrics that can be useful for relative valuation.

1299 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA15.5x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does 1299's PE Ratio compare to its peers?

1299 PE Ratio vs Peers
The above table shows the PE ratio for 1299 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.8x
2318 Ping An Insurance (Group) Company of China
7.4x15.5%HK$850.3b
2628 China Life Insurance
7.6x17.9%HK$764.4b
966 China Taiping Insurance Holdings
3.9x15.8%HK$29.5b
1339 People's Insurance Company (Group) of China
4.1x8.8%HK$212.3b
1299 AIA Group
15.9x11.2%HK$915.8b

Price-To-Earnings vs Peers: 1299 is expensive based on its Price-To-Earnings Ratio (15.9x) compared to the peer average (5.7x).


Price to Earnings Ratio vs Industry

How does 1299's PE Ratio compare vs other companies in the Asian Insurance Industry?

Price-To-Earnings vs Industry: 1299 is expensive based on its Price-To-Earnings Ratio (15.9x) compared to the Hong Kong Insurance industry average (6.5x)


Price to Earnings Ratio vs Fair Ratio

What is 1299's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1299 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.9x
Fair PE Ratio8.6x

Price-To-Earnings vs Fair Ratio: 1299 is expensive based on its Price-To-Earnings Ratio (15.9x) compared to the estimated Fair Price-To-Earnings Ratio (8.6x).


Share Price vs Fair Value

What is the Fair Price of 1299 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1299 (HK$77.85) is trading below our estimate of fair value (HK$114.47)

Significantly Below Fair Value: 1299 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is AIA Group forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1299's forecast earnings growth (11.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 1299's earnings (11.2% per year) are forecast to grow slower than the Hong Kong market (16.7% per year).

High Growth Earnings: 1299's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1299's revenue (5.3% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 1299's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1299's Return on Equity is forecast to be low in 3 years time (12.3%).


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Past Performance

How has AIA Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1299 has high quality earnings.

Growing Profit Margin: 1299's current net profit margins (16%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: 1299's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: 1299's earnings growth over the past year (28.5%) exceeds its 5-year average (7.2% per year).

Earnings vs Industry: 1299 earnings growth over the past year (28.5%) exceeded the Insurance industry 11.4%.


Return on Equity

High ROE: 1299's Return on Equity (12.3%) is considered low.


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Financial Health

How is AIA Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1299's short term assets ($125.5B) exceed its short term liabilities ($71.2B).

Long Term Liabilities: 1299's short term assets ($125.5B) do not cover its long term liabilities ($207.7B).


Debt to Equity History and Analysis

Debt Level: 1299 has more cash than its total debt.

Reducing Debt: 1299's debt to equity ratio has increased from 15.7% to 18.7% over the past 5 years.

Debt Coverage: 1299's debt is well covered by operating cash flow (34.3%).

Interest Coverage: 1299's interest payments on its debt are well covered by EBIT (22.5x coverage).


Balance Sheet


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Dividend

What is AIA Group current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.87%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1299's dividend (1.87%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.87%).

High Dividend: 1299's dividend (1.87%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.25%).


Stability and Growth of Payments

Stable Dividend: 1299's dividends per share have been stable in the past 10 years.

Growing Dividend: 1299's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.4%), 1299's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (67.8%), 1299's dividend payments are covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Yuan Siong Lee (56 yo)

2.17yrs

Tenure

US$15,705,952

Compensation

Mr. Yuan Siong Lee has been Group Chief Executive, Executive Director and President of AIA Group Limited since June 1, 2020. He is a Director of various companies within the Group, including acting as Chai...


CEO Compensation Analysis

Compensation vs Market: Yuan Siong's total compensation ($USD15.71M) is above average for companies of similar size in the Hong Kong market ($USD1,000.00K).

Compensation vs Earnings: Yuan Siong's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 1299's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: 1299's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1299 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AIA Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: AIA Group Limited
  • Ticker: 1299
  • Exchange: SEHK
  • Founded: 1919
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Implied Market Cap: HK$927.075b
  • Shares outstanding: 11.91b
  • Website: https://www.aia.com

Number of Employees


Location

  • AIA Group Limited
  • AIA Central
  • 35th Floor
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.