GLONGHUI, April 15 | CICC released a report stating that it kept its profit forecast for AIA unchanged and lowered the target price by 21% to HK$74 in view of the weakening market trust in the P/EV valuation system to maintain the “outperforming industry” rating. The reason for the continued decline after AIA's annual report was that the company's stock price fell all the way down due to continued sales by some foreign institutions. However, some investors believe that AIA's current comparative advantage is narrower than that of the company's fundamentals. Combined with AIA's valuations, there is still a clear premium compared to foreign investors Prudential (currently 0.5 times P/EV) and Chinese peers (0.1 to 0.4 times P/EV). The company's performance and future expectations last year may be difficult to support this. CICC still believes that AIA's competitive advantage over its peers on the debt side is long-term and stable, but in the current environment where the share of savings insurance and banking insurance is increasing in many regions, its competitive advantage may not lead to too many excessive performance relative to its peers at the performance level as in the past. We need to pay attention to the changing trend of the company's subsequent profits, new business value, and operating profit compared to peers. It is recommended to wait for the opportunity on the right. It is recommended to pay attention to the statements of companies that released the first quarter or interim results on repurchases or dividends. If the repurchase continues, it is expected to provide strong support for stock prices.