SEHK:1299

Stock Analysis Report

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Executive Summary

AIA Group Limited, together with its subsidiaries, provides insurance products and services. More Details

Rewards

Earnings are forecast to grow 18.94% per year

Earnings grew by 35% over the past year

Risk Analysis

1299 passed our risk checks.


Snowflake Analysis

Excellent balance sheet with solid track record.


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 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 1299's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

1299

3.4%

HK Insurance

0.4%

HK Market


1 Year Return

14.6%

1299

1.4%

HK Insurance

11.0%

HK Market

Return vs Industry: 1299 exceeded the Hong Kong Insurance industry which returned 1.4% over the past year.

Return vs Market: 1299 exceeded the Hong Kong Market which returned 11% over the past year.


Shareholder returns

1299IndustryMarket
7 Day-1.1%3.4%0.4%
30 Day14.0%15.7%7.0%
90 Day14.0%8.4%6.4%
1 Year16.8%14.6%4.8%1.4%15.5%11.0%
3 Year53.6%46.2%9.7%1.9%4.1%-6.8%
5 Year102.4%86.6%35.4%20.8%34.9%12.3%

Long-Term 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?

25.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1299 (HK$88.9) is trading above our estimate of fair value (HK$69.05)

Significantly Below Fair Value: 1299 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1299 is poor value based on its PE Ratio (25.2x) compared to the HK Insurance industry average (10.2x).

PE vs Market: 1299 is poor value based on its PE Ratio (25.2x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1299 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 1299 is overvalued based on its PB Ratio (2.4x) compared to the HK Insurance industry average (0.9x).


Next Steps

Future Growth

How is AIA Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1299's forecast earnings growth (18.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 1299's earnings (18.9% per year) are forecast to grow slower than the Hong Kong market (21.3% per year).

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

Revenue vs Market: 1299's revenue (7.9% per year) is forecast to grow slower than the Hong Kong market (13.6% per year).

High Growth Revenue: 1299's revenue (7.9% 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 (12.4%).


Next Steps

Past Performance

How has AIA Group performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1299 has high quality earnings.

Growing Profit Margin: 1299's current net profit margins (12.7%) are higher than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: 1299's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: 1299's earnings growth over the past year (35%) exceeds its 5-year average (11.5% per year).

Earnings vs Industry: 1299 earnings growth over the past year (35%) exceeded the Insurance industry -3.4%.


Return on Equity

High ROE: 1299's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is AIA Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1299's short term assets ($92.6B) exceed its short term liabilities ($56.1B).

Long Term Liabilities: 1299's short term assets ($92.6B) do not cover its long term liabilities ($177.8B).


Debt to Equity History and Analysis

Debt Level: 1299's debt to equity ratio (15.4%) is considered satisfactory.

Reducing Debt: 1299's debt to equity ratio has reduced from 21.6% to 15.4% over the past 5 years.

Debt Coverage: 1299's debt is well covered by operating cash flow (60.9%).

Interest Coverage: 1299's interest payments on its debt are well covered by EBIT (25.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1299's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.2%).

High Dividend: 1299's dividend (1.44%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.59%).


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 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.3%), 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 (40.8% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Yuan Siong Lee (54 yo)

0.50

Tenure

Mr. Yuan Siong Lee has been Group Chief Executive, Executive Director and President of AIA Group Limited since June 1, 2020. Mr. Lee is Non-executive Director of Ping An Healthcare and Technology Company L...


Leadership Team

NamePositionTenureCompensationOwnership
Yuan Siong Lee
Group Chief Executive0.50yrno data0.0026%
$ 27.9m
Garth Brian Jones
Group Chief Financial Officer9.67yrsno datano data
Tan Hak Leh
Regional Chief Executive & Group Chief Life Operations Officerno datano datano data
Mark Konyn
Group Chief Investment Officer5.25yrsno datano data
Biswa Misra
Group Chief Technology Officer3.5yrsno datano data
Lance Montague Burbidge
Head of Investor Relationsno datano datano data
Mitchell New
Group General Counselno datano datano data
Mark Vincent Thomas Saunders
Group Chief Strategy & Corporate Development Officer3.5yrsno datano data
Stuart Anthony Spencer
Group Chief Marketing Officer3.5yrsno datano data
Cara Ang
Group Chief Human Resources Officer3.5yrsno datano data
Wing Shing Chan
Regional Chief Executiveno datano datano data
William Lisle
Regional Chief Executive & Group Chief Distribution Officer9.92yrsno datano data

3.5yrs

Average Tenure

55yo

Average Age

Experienced Management: 1299's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yuan Siong Lee
Group Chief Executive0.50yrno data0.0026%
$ 27.9m
Sze-Wing Tse
Independent Non-Executive Chairman9.92yrsUS$776.58k0.028%
$ 296.7m
Chak-Kwong So
Independent Non-Executive Director10.25yrsUS$268.00k0.0011%
$ 11.5m
Juen-Yee Lau
Independent Non-Executive Director6.25yrsUS$213.00k0.0013%
$ 14.2m
Narongchai Akrasanee
Independent Non-Executive Director4.92yrsUS$273.00kno data
Swee Lian Teo
Independent Non-Executive Director5.33yrsUS$213.00kno data
Chung-Kong Chow
Independent Non-Executive Director10.25yrsUS$228.00k0.0010%
$ 11.1m
Cesar A. Purisima
Independent Non-Executive Director3.25yrsUS$183.00kno data
John Harrison
Independent Non-Executive Director9.42yrsUS$268.00k0.00066%
$ 7.0m
Yong-Boon Yeo
Independent Non-Executive Director8.08yrsUS$253.00k0.00041%
$ 4.4m

7.2yrs

Average Tenure

67.5yo

Average Age

Experienced Board: 1299's board of directors are considered experienced (7.2 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 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$1.065t
  • Shares outstanding: 12.06b
  • Website: https://www.aia.com

Number of Employees


Location

  • AIA Group Limited
  • AIA Central
  • 35th Floor
  • Central
  • 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, together with its subsidiaries, provides insurance products and services. The company offers life, medical, accident protection, critical illness protection, and disability income protec...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 10:15
End of Day Share Price2020/12/03 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.