DBS released a research report sayingSafariSpinSafari, the recent significant adjustment in the share price of AIA (01299) reflects market concerns about the downgrade of the mainland, the ambiguity of AIA's mainland channel strategy, profit margin dilution risk, and capital management. The company's medium-and long-term growth remains strong, newSafariSpinSafariGeographical expansion has become a strong growth driver. The bank lowered its corporate price target from HK$110 to HK$100 and reiterated its "Buy" rating.

The bank said that AIA's unique position in capturing structural opportunities in China remains intact and remains positive for the medium-and long-term growth of the company's new business value in the mainland, maintaining its forecast of a 22% year-on-year growth in the value of new business in the mainland in fiscal years 2024 and 2025. It is also expected that the latest geographical expansion will contribute 8% and 13% to the overall new business value in fiscal years 2024 and 2025.