CICC Report: China's Commercial Health Insurance Sector Poised for New Era with Emphasis on Four Key Areas

The analyst rating for AIA (01299.HK) is maintained at "Overweight" due to several key reasons highlighted in the JPMorgan report: 1. Strong Performance: AIA has outperformed the market over the past 12 months, with a total increase of 63%, significantly surpassing the HSI's rise of approximately 37%. 2. Beneficiary of Weakening USD: AIA is identified as a major beneficiary of the weakening US dollar, which could positively impact its financial performance. 3. Potential for Increased Business Growth Forecasts: There is an expectation that the market may raise its future business growth forecasts for AIA, which could serve as a catalyst for further valuation increases. 4. Positive Market Outlook: Anticipation of better performance in key markets such as Hong Kong, mainland China, and Thailand, along with potential data disclosures from a joint venture in India, supports upgrades to AIA's new business value growth forecasts for FY2026/2027. 5. Target Price Increase: JPMorgan has raised its target price for AIA to $115, reflecting confidence in the company's growth prospects. These factors collectively contribute to the positive analyst rating and outlook for AIA.