-
Net impact of AIA's CBA deal immaterial - UBS
AIA Group (01299) announced the acquisition of Australia and New Zealand insurance business of
 Commonwealth Bank of Australia (CBA) at US$3bn.

  UBS Global Research thinks the transaction size and risk transfer are substantially
lower after netting with reinsurance, thus it does not expect a material net impact to 
AIA. Even on a net basis, the implied valuation of 1.32x looks reasonable and UBS believes
it reflects discipline on AIA's M&A strategy.
  UBS said said the long term growth prospects for AIA remain intact and their strong
balance sheet, even post the transaction, still provides plenty of capital flexibility. It
maintained its "buy" rating on AIA, with a target price of HK$68

Comments

Post a Comment

Popular posts from this blog

-
CLSA lowers Beijing Ent Water (00371) to HK$6   CLSA cut its target price for Beijing Enterprises Water (BEW)(00371) by 8% to HK$6, and reiterated its "buy" rating.   The research house said BEW's share price has dropped 14% in the last two trading days. First, the 2017 earnings results are below expectations. Second, management is guiding for 20-25% net profit growth for 2018, versus 30% in the past few years. Management now has a cautious approach to water PPP (public-private partnership) projects, which is not  necessarily bad.   CLSA cut its 2018-19 earnings forecasts by 19%. At the current level, it believes many  of the negatives are already priced-in.
Read more
-
HSBC HOLDINGS Appoints Malaysia CEO as Asia-Pacific One-Belt-One-Road Biz Manager  HSBC HOLDINGS(00005.HK)    +1.150 (+1.574%)    Short selling $311.30M; Ratio 15.773%   announced that Malaysia CEO Mukhtar Hussain was appointed to the newly created position of head of Belt and Road initiative in Asia Pacific, effective from 1 July.
Read more
-
Image
WKK INTL (HOLD) (00532.HK)    +0.100 (+15.152%)      announced the results for its subsidiary, Taiwan Kong King, for the nine months ended September 2014. The unaudited combined after-tax net profit decreased 30.26% to $12.239 million, compared with the same period last year. Revenue amounted to $177 million.
Read more