Lyon: Maintains "outperform" rating on AIA (01299) and lists it as the top choice for Asian insurance stocks.

Lyon released a research report stating that AIA (01299) experienced robust growth in new business last year, with strong cash generation capability and improved capital efficiency. The bank expects the company's capital efficiency to continue to improve this year, driving total shareholder return higher than market expectations, while new business value is expected to grow by around 15% (mid-teens). The bank slightly adjusted its profit forecast for AIA, maintaining an "outperform the market" rating, keeping the target price at 110 Hong Kong dollars, and continuing to view AIA as the top pick in the Asian insurance industry. The bank predicts that AIA's share buyback total for 2026 and 2027 will reach 1.7 billion and 1.8 billion US dollars respectively, higher than the market expectation of 1.3 billion to 1.7 billion US dollars. In addition, the bank expects the company's dividend to grow by 10% and 12% respectively during the period.