According to a research report released by Xiaomo, Prudential (02378) and AIA (01299) are at rock bottom, although to a large extent they have reflected the economic growth of the mainland.BlackjackgamesBut investors are sceptical about the connotative value itself and the degree of realization, and hope that the two insurers will support enterprise value (EV) by improving the return on capital. Given its strong free cash flow growth prospects and capital and cash flexibility, the bank believes AIA and Prudential will consider this in the coming quarters.

The bank forecasts that Prudential and AIA will have free cash flow returns of about 5 per cent and 6 per cent respectively this year. AIA is currently projected to have upward potential for a compound annual growth rate of about 8 per cent per share dividend between 2024 and 2026, and it is believed that AIA has enough flexibility to readjust dividends and consider more regular repurchase plans after completing the current buyback plan. Motors believes Prudential may consider raising dividends or buybacks. Prudential management has said it is willing to listen to market views on its return on capital policy. The 2022-2024 target is a growth rate of 7 to 9 per cent per share, and the bank expects the company to meet the upper limit of the target range and believes Prudential will consider readjusting the dividend per share or providing higher guidance for dividend growth starting in 2025. It also believes that Prudential has capital to consider buybacks.