SEHK:1299

Stock Analysis Report

Executive Summary

AIA Group Limited provides insurance products and services.


Snowflake Analysis

Questionable track record with limited growth.


Similar Companies

Share Price & News

How has AIA Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1299 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

1299

-0.1%

HK Insurance

0.5%

HK Market


1 Year Return

22.0%

1299

19.8%

HK Insurance

-0.2%

HK Market

Return vs Industry: 1299 exceeded the Hong Kong Insurance industry which returned 19.8% over the past year.

Return vs Market: 1299 exceeded the Hong Kong Market which returned -0.2% over the past year.


Shareholder returns

1299IndustryMarket
7 Day0.5%-0.1%0.5%
30 Day-2.0%-5.2%-3.8%
90 Day-1.5%-1.6%-1.3%
1 Year24.0%22.0%22.2%19.8%3.4%-0.2%
3 Year85.4%76.9%53.2%44.9%18.8%6.7%
5 Year105.0%90.5%51.6%39.0%19.5%-0.5%

Price Volatility Vs. Market

How volatile is AIA Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AIA Group undervalued compared to its fair value and its price relative to the market?

16.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1299 (HK$78) is trading below our estimate of fair value (HK$92.96)

Significantly Below Fair Value: 1299 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1299 is poor value based on its PE Ratio (26.3x) compared to the Insurance industry average (10x).

PE vs Market: 1299 is poor value based on its PE Ratio (26.3x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1299 is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: 1299 is overvalued based on its PB Ratio (2.4x) compared to the HK Insurance industry average (1x).


Next Steps

Future Growth

How is AIA Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1299's forecast earnings growth (11.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 1299's earnings (11.4% per year) are forecast to grow slower than the Hong Kong market (11.9% per year).

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

Revenue vs Market: 1299's revenue (11.9% per year) is forecast to grow faster than the Hong Kong market (9.8% per year).

High Growth Revenue: 1299's revenue (11.9% 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 (15%).


Next Steps

Past Performance

How has AIA Group performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1299 has high quality earnings.

Growing Profit Margin: 1299's current net profit margins (11.8%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: 1299's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: 1299's earnings growth over the past year (3.4%) is below its 5-year average (10.1% per year).

Earnings vs Industry: 1299 earnings growth over the past year (3.4%) underperformed the Insurance industry 4.6%.


Return on Equity

High ROE: 1299's Return on Equity (9.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AIA Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 1299 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1299's debt is covered by short term assets (assets are 9.6x debt).


Financial Institutions Analysis

Asset Level: 1299's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 1299 has a sufficient allowance for bad loans.

Low Risk Liabilities: 1299 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 1299 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1299 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 1299 has an appropriate level of bad loans.


Next Steps

Dividend

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

1.51%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%2.3%markettop25%6.2%industryaverage1.8%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: 1299's dividend (1.51%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1299's dividend (1.51%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.23%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1299 has been paying a dividend for less than 10 years.

Growing Dividend: 1299's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.9%), 1299's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1299's dividends in 3 years are forecast to be well covered by earnings (34.4% payout ratio).


Next Steps

Management

What is the CEO of AIA Group's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Keng Hooi Ng (64yo)

2.5yrs

Tenure

US$9,536,956

Compensation

Mr. Keng Hooi Ng has been President, Group Chief Executive and Executive Director at AIA Group Limited since June 1, 2017. Mr. Ng served as Executive Vice President and Regional Chief Executive Officer at  ...


CEO Compensation Analysis

Compensation vs Market: Keng Hooi's total compensation ($USD9.54M) is above average for companies of similar size in the Hong Kong market ($USD874.80K).

Compensation vs Earnings: Keng Hooi's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 1299's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

66.5yo

Average Age

Experienced Board: 1299's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$599,900,50910 Dec 19
Capital Research and Management Company
EntityCompany
Shares7,737,736
Max PriceUS$77.53
BuyUS$9,82920 Nov 19
Keng Hooi Ng
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive
Shares127
Max PriceUS$77.39
BuyUS$19,23818 Oct 19
Keng Hooi Ng
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive
Shares259
Max PriceUS$74.28
SellUS$365,142,73402 Oct 19
Capital Research and Management Company
EntityCompany
Shares4,933,568
Max PriceUS$74.01
BuyUS$9,69019 Sep 19
Keng Hooi Ng
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive
Shares121
Max PriceUS$80.08
BuyUS$9,78020 Aug 19
Keng Hooi Ng
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive
Shares134
Max PriceUS$72.98
BuyUS$341,127,82417 Jul 19
Capital Research and Management Company
EntityCompany
Shares3,992,816
Max PriceUS$85.44
BuyUS$9,78317 Jul 19
Keng Hooi Ng
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive
Shares116
Max PriceUS$84.34
SellUS$4,155,30003 Jul 19
Yong-Boon Yeo
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares50,000
Max PriceUS$83.11
SellUS$10,556,00024 Jun 19
Chak-Kwong So
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares130,000
Max PriceUS$81.20
BuyUS$35,93420 Jun 19
Keng Hooi Ng
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive
Shares474
Max PriceUS$75.81
BuyUS$129,353,40504 Jun 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares1,718,676
Max PriceUS$75.26
BuyUS$387,50031 May 19
John Harrison
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,000
Max PriceUS$77.50
BuyUS$9,73220 May 19
Keng Hooi Ng
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive
Shares126
Max PriceUS$77.24
BuyUS$758,936,47208 May 19
Capital Group International Inc.
EntityCompany
Shares9,456,304
Max PriceUS$80.26
SellUS$72,950,43908 May 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares877,347
Max PriceUS$83.15
BuyUS$9,77818 Apr 19
Keng Hooi Ng
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive
Shares122
Max PriceUS$80.15
BuyUS$9,76419 Mar 19
Keng Hooi Ng
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive
Shares125
Max PriceUS$78.11
BuyUS$220,326,78307 Mar 19
Capital Research and Management Company
EntityCompany
Shares2,801,372
Max PriceUS$78.65
SellUS$1,084,283,69322 Feb 19
Capital Group International Inc.
EntityCompany
Shares3,640,776
Max PriceUS$297.82
BuyUS$78,922,49821 Feb 19
Capital Research and Management Company
EntityCompany
Shares1,065,081
Max PriceUS$74.10
BuyUS$9,72620 Feb 19
Keng Hooi Ng
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive
Shares131
Max PriceUS$74.25
BuyUS$9,77518 Jan 19
Keng Hooi Ng
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive
Shares144
Max PriceUS$67.88
BuyUS$9,74320 Dec 18
Keng Hooi Ng
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive
Shares152
Max PriceUS$64.10

Ownership Breakdown

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


Management Team

  • Lance Montague Burbidge

    Head of Investor Relations

    • Tenure: 0yrs
  • Mark Konyn (57yo)

    Group Chief Investment Officer

    • Tenure: 4.3yrs
  • Mitch New (54yo)

    Group General Counsel

    • Tenure: 0yrs
  • Stuart Anthony Spencer (53yo)

    Group Chief Marketing Officer

    • Tenure: 2.5yrs
  • Keng Hooi Ng (64yo)

    Group Chief Executive

    • Tenure: 2.5yrs
    • Compensation: US$9.54m
  • Garth Brian Jones (56yo)

    Group Chief Financial Officer

    • Tenure: 8.7yrs
  • Andrew Leung

    Head of External Manager Strategies

    • Tenure: 0yrs
  • Mark Vincent Thomas Saunders (55yo)

    Group Chief Strategy & Corporate Development Officer

    • Tenure: 2.5yrs
  • Cara Ang (51yo)

    Group Chief Human Resources Officer

    • Tenure: 2.5yrs
  • Biswa Misra (41yo)

    Group Chief Technology & Operations Officer

    • Tenure: 2.5yrs

Board Members

  • Edmund Tse (81yo)

    Independent Non-Executive Chairman

    • Tenure: 8.9yrs
    • Compensation: US$752.01k
  • Jack So (73yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: US$282.08k
  • Lawrence Lau (75yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: US$222.41k
  • Mohamed Bin Yahya (55yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: US$222.41k
  • Narongchai Akrasanee (74yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$287.43k
  • Swee Lian Teo (59yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: US$222.41k
  • Chung-Kong Chow (68yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: US$238.69k
  • John Harrison (63yo)

    Independent Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: US$282.08k
  • Keng Hooi Ng (64yo)

    Group Chief Executive

    • Tenure: 2.5yrs
    • Compensation: US$9.54m
  • George Yeo (65yo)

    Independent Non-Executive Director

    • Tenure: 7.1yrs
    • Compensation: US$265.81k

Company Information

AIA Group Limited's company bio, 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
  • Market Cap: HK$932.471b
  • Shares outstanding: 12.05b
  • Website: https://www.aia.com

Number of Employees


Location

  • AIA Group Limited
  • AIA Wealth Select Centre
  • 12/F, AIA Tower
  • North Point
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1299SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2010
AAIG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2010
7A2DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2010
1299SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2010
1299SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2010
1299 NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNOct 2010
AAGI.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 2011

Biography

AIA Group Limited provides insurance products and services. The company offers life, medical, accident protection, critical illness protection, and disability income protection insurance products, as well  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 12:55
End of Day Share Price2019/12/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.