Investment Rating - The report maintains a rating of "Buy" for Bank of China Aviation Leasing, with a target price raised to HKD 87.13, corresponding to a 1.24x P/B for 2024 [6]. Core Insights - The company's net profit for the first half of 2024 increased by 75.57% year-on-year, exceeding market expectations, driven by strong demand leading to increased financing leasing income, aircraft sales revenue, and aircraft impairment reversals. The anticipated interest rate cuts are expected to further improve cost of debt [3][6]. Summary by Sections Financial Performance - For the first half of 2024, the company achieved revenue of USD 1.174 billion, a year-on-year increase of 10.65%. The net profit attributable to shareholders was USD 460 million, reflecting a 75.57% increase year-on-year, primarily due to aircraft impairment reversals, growth in financing leasing interest income, and increased net aircraft sales revenue [6]. - The company declared an interim dividend of USD 0.1988 per share, a 76% increase year-on-year, maintaining a stable payout ratio of 30% [6]. Revenue Breakdown - The operating leasing revenue was USD 928 million, remaining stable, while financing leasing revenue surged to USD 96 million, a year-on-year increase of 379.5%. This growth is attributed to the stable increase in air transport passenger volume and insufficient new aircraft deliveries on the supply side, driving strong demand for financing leasing [6]. Cost Management - The company's costs and expenses amounted to USD 665 million, a decrease of 13.1% year-on-year, mainly due to a net aircraft impairment reversal of USD 170 million. The combination of revenue growth and cost improvement drove the significant increase in net profit for the first half of 2024 [6]. Market Position and Outlook - The company delivered 18 new aircraft in the first half of 2024, compared to 15 in the same period of 2023, and sold 15 aircraft, up from 3 in the previous year. The tight supply of aircraft in the industry has led to increased demand and rising aircraft values [6]. - The company benefits from diversified financing channels and is expected to see further improvements in funding costs due to the anticipated interest rate cuts by the Federal Reserve [6].

Investment Rating - The report maintains a "Buy" rating for China Aircraft Leasing Group Holdings Limited (中银航空租赁) [2] Core Views - The company reported strong performance in 1H24, with total revenue of USD 1.174 billion, a year-on-year increase of 11%, and a net profit of USD 460 million, up 76% year-on-year [2] - The company has a robust order book with 219 aircraft scheduled for delivery until the end of 2029, which is expected to support future earnings growth [2][3] - The net leasing yield is anticipated to remain stable or increase due to strong industry demand and limited supply, with a current yield of 7% [3] - The expectation of a Federal Reserve interest rate cut may reduce the company's financial costs, enhancing profitability [3] - The Asia-Pacific region is identified as a key growth area for air passenger demand, contributing significantly to the company's revenue [3] Summary by Sections Financial Performance - In 1H24, the company achieved total revenue of USD 1.174 billion, a year-on-year increase of 11%, and a net profit of USD 460 million, reflecting a 76% increase year-on-year [2][4] - The company’s fleet consisted of 680 aircraft at the end of 1H24, with a utilization rate of 99% for owned aircraft [2][3] Market Position and Strategy - The company has a young fleet with an average age of 4.9 years and a remaining lease term of 7.9 years, which positions it well in the market [2] - The order book includes 55 new leasing commitments, indicating strong future revenue potential [2][3] Earnings Forecast - The earnings forecast for 2024-2026 has been adjusted, with expected net profits of USD 783 million, USD 771 million, and USD 822 million respectively [3][4][6] - The company’s financial costs are projected to decrease due to anticipated interest rate cuts, which will positively impact profitability [3]

Financial Performance - Total operating revenue and other income reached $1.174 billion, an increase of 11% compared to $1.061 billion in the same period last year[2]. - Net profit after tax was $460 million, a significant increase of 76% from $262 million in the first half of 2023[2]. - Earnings per share rose to $0.66, up 76% from $0.38 in the same period last year[2]. - The core net profit for the first half of 2024 was $284 million, reflecting a significant recovery in value from two freighters returned in March 2024[14]. - Total operating revenue and other income for the first half of 2024 reached $1.2 billion, an 11% increase from $1.08 billion in the same period of 2023[15]. - The company reported a net profit of $460 million, with earnings per share of $0.66, marking a historical high compared to $262 million and $0.38 per share in the same period of 2023[14]. - The total comprehensive income for the period was $494,603 thousand, compared to $275,073 thousand in the previous year, marking an increase of approximately 79.8%[89]. Dividends - The board declared an interim dividend of $0.1988 per share, compared to $0.1131 per share in the first half of 2023[2]. - The company declared an interim dividend of $0.1988 per share, representing 30% of net profit, a 76% increase from the previous year's interim dividend of $0.1131[14]. - The total proposed interim dividend for the period ending June 30, 2024, is $0.1988 per share, amounting to $138,000 thousand, an increase from $0.1131 per share ($78,493 thousand) in the same period of 2023[156]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to $24.286 billion, remaining stable compared to $24.170 billion as of December 31, 2023[2]. - Total assets increased by 0.5% from $24.2 billion on December 31, 2023, to $24.3 billion on June 30, 2024[33]. - Total liabilities decreased to $18,224,883 thousand as of June 30, 2024, from $18,421,149 thousand as of December 31, 2023[88]. - Total equity rose by 5.4% from $5.7 billion on December 31, 2023, to $6.1 billion on June 30, 2024[44]. - The net deferred tax liabilities amounted to $695,764 thousand as of June 30, 2024, compared to $647,250 thousand as of December 31, 2023, reflecting an increase of approximately 7.5%[153]. Cash Flow and Liquidity - Operating cash flow (excluding interest) for the first half of 2024 was $908 million[2]. - The company maintained strong liquidity with $532 million in cash and cash equivalents, in addition to $4.9 billion in undrawn committed loan facilities[2]. - Cash generated from operating activities for the first half of 2024 was $1,142,292 thousand, compared to $968,588 thousand in the same period of 2023, reflecting an increase of approximately 17.9%[91]. - Available liquidity, including cash and cash equivalents and undrawn credit facilities, totaled $5.5 billion as of June 30, 2024[18]. Aircraft and Fleet Management - The fleet consisted of 680 aircraft with an average age of 4.9 years and an average remaining lease term of 7.9 years[3]. - 18 new aircraft were delivered in the first half of 2024, and 15 owned aircraft were sold[3]. - The company successfully increased aircraft deliveries from 15 in the first half of 2023 to 18 in the first half of 2024, with a total of 55 aircraft planned for delivery in 2024[14]. - The average age of the company's owned fleet is 4.9 years, with a total of 429 aircraft, and a commitment to purchase an additional 14 aircraft, bringing the total order to 219[15]. Financial Expenses and Income - Total costs and expenses decreased by 13.1% to $664.83 million in the first half of 2024, down from $765.48 million in the same period last year[26]. - Financial expenses for the first half of 2024 were $358 million, an increase of 20.6% from $296 million in the first half of 2023, primarily due to rising debt costs[28]. - Financing lease interest income increased by 379.5% to $95.99 million in the first half of 2024, compared to $20.02 million in the same period last year[22]. - Lease rental income for the first half of 2024 was $927.74 million, a decrease of 1.3% from $940.08 million in the first half of 2023[21]. Shareholder Information - As of June 30, 2024, Central Huijin Investment Limited holds 485,807,334 shares, representing 70% of the total issued share capital[59]. - Bank of China also holds 485,807,334 shares, equivalent to 70% of the total issued share capital[59]. - The company has no other individuals or entities holding 5% or more of the shares or related shares as of June 30, 2024[62]. - The directors and CEO hold a total of 1,830,596 shares, representing approximately 0.25% of the total issued share capital[64]. Corporate Governance - The company has fully complied with the corporate governance code during the six-month period ending June 30, 2024[73]. - The audit committee consists of three independent non-executive directors and two non-executive directors, with the chairman being Mr. Dai Deming[72]. - The board of directors includes both executive and non-executive members, ensuring a diverse governance structure[80]. Future Commitments and Plans - Projected cash outflows for aircraft capital expenditures total $11.9 billion, with $1.9 billion expected in the second half of 2024[53]. - The company has committed to purchase 219 aircraft for delivery until the end of 2029, with 79% of its owned fleet consisting of the latest technology aircraft as of June 30, 2024[18]. - The company plans to transition floating rate liabilities to a fallback rate due to the anticipated termination of the synthetic USD LIBOR after September 30, 2024[174].

[Table_Title] 【广发非银&海外】中银航空租赁 （02588.HK） 利润弹性大于预期，估值稳健上行 [Table_Summary] 核心观点： ⚫ 2024 年 8 月 5 日公司发布正面盈利预告，公告显示公司 2024 年上半 年净利润同比增速在 70-80%，主因 2024 年 3 月初自俄罗斯收回的 2 架飞机带来的增量影响。 ⚫ 复盘 2023 年俄罗斯保险赔付金额，首先，2022 年俄乌冲突为公司带 来 5.07 亿美元的净亏损。2023 年 11 月俄罗斯保险公司针对滞留俄罗 斯的 8 架飞机赔付 2.08 亿美元，到 2023 年底俄罗斯保险公司已针对 11 架飞机赔付 2.58 亿美元。 ⚫ （1）飞机销售数量：公司 2024H1 销售自有飞机 15 架，2023 年 H1 同期仅销售 3 架飞机，参考同业公司，截至 24H1，AERCAP\AIRLEASE 共计销售 64、16 架，去年同期销售 49、10 架，亦有所增长，一定程 度反应波音交付下滑加快航司向飞机租赁公司购买飞机的动作，同时， 飞机销售数量的增长有望推高销售净额。 ⚫ （2）应收租赁款增长：公司应收租赁款在 2 ...

Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 78 HKD per share, compared to the current price of 56.50 HKD [7]. Core Insights - The company reported significant improvement in operational data, particularly in aircraft sales, which is expected to drive revenue growth in the first half of 2024 [2][3]. - The average age of the company's owned fleet increased to 4.9 years as of Q2 2024, up from 4.6 years in 2023, indicating a potential increase in sales of older assets [3]. - The delivery of aircraft has been negatively impacted, with Boeing and Airbus delivering 131 and 256 aircraft respectively from January to May 2024, compared to 206 and 244 in the same period of 2023 [4]. - The decline in delivery levels is expected to support continued growth in rental income [4]. - The company benefits from a decrease in interest costs due to lower U.S. Treasury yields, which may enhance profit margins [5]. - Profit forecasts indicate a net profit of 840 million USD for 2024 and 885 million USD for 2025, with core net profit expected to grow significantly in a declining interest rate environment [5]. Summary by Sections Operational Performance - The company delivered a total of 18 aircraft and sold 15 in the first half of 2024, compared to 16 deliveries and 3 sales in the same period last year [2]. - Increased aircraft sales are anticipated to contribute to revenue growth in the first half of 2024 [3]. Delivery and Rental Income - The overall delivery levels of Boeing and Airbus have decreased, which is expected to positively impact rental income due to supply constraints [4]. Financial Projections - The company is projected to achieve revenues of 2,307 million USD in 2024, with a growth rate of 9.90% [6]. - The net profit is expected to grow at a rate of 9.95% in 2024, reaching 840 million USD [6].

证券研究报告 中银航空租赁 (2588 HK) 港股通 2Q24:飞机交付 13 架,售出 11 架 华泰研究 公告点评 2024 年 7 月 09 日│中国香港 租赁 | | | |-------------------------------|---------------------------| | 投资评级(维持): | 买入 | | 目标价(港币): | 78.00 | | 研究员 SAC No. S0570521010001 | 李健,PhDlijian@htsc.com | | SFC No. AWF297 | +(852) 3658 6112 | | 联系人 | 陈宇轩 | | SAC No. S0570122070171 | chenyuxuan020827@htsc.com | | | +(86) 21 2897 2228 | 稳健经营,发行公司史上最窄利差的美元债券 中银航空租赁(BOCA)7 月 8 日披露了 2Q24 运营数据。2Q24 末,公司 自有飞机数量提升至 429 架(1Q24:427 架),自有飞机利用率环比持平。 飞机机龄和剩余租期保持健康。在飞机价值的上升周期中,公 ...

Investment Rating - The report initiates coverage with a "Buy" rating and sets a target price of HKD 79.94, corresponding to a 2024 P/B of 1.14x [3][4]. Core Views - The report highlights that the improvement in performance is driven by both asset and liability sides, with expectations of revenue growth from increased leasing rates and reduced financing costs due to anticipated interest rate declines [3][25]. - The demand for air transport is recovering, leading to an expected increase in leasing rates, while the company's financing costs are projected to decrease as global interest rates decline [3][36]. Summary by Sections 1. Company Overview - The report identifies the company as one of the largest aircraft operating leasing firms globally, with a strong management team and a focus on operational leasing, which alleviates cash flow pressures for airlines [9][19]. - The company has shown resilience and recovery in performance post-pandemic, with a significant rebound in 2023 [25][22]. 2. Supply and Demand Dynamics - The report notes a mismatch in supply and demand, with strong aircraft demand driving rental yield increases, while financing costs are expected to decline due to lower interest rates [3][38]. - The aircraft manufacturing capacity is limited, primarily relying on Boeing and Airbus, which affects the supply of new aircraft to meet rising demand [38]. 3. Financial Projections - Revenue forecasts for 2024-2026 are projected at USD 2.533 billion, USD 2.697 billion, and USD 2.835 billion, reflecting year-on-year growth rates of 2.9%, 6.5%, and 5.1% respectively [3][7]. - Net profit estimates for the same period are USD 783 million, USD 892 million, and USD 991 million, with growth rates of 2.5%, 13.9%, and 11.2% respectively [3][7]. 4. Revenue Composition - In 2023, the company achieved rental income of USD 1.911 billion, accounting for 77.6% of total revenue, with a year-on-year growth of 7.1% [27][29]. - The increase in rental income is attributed to the growth in the number of aircraft in the operating lease fleet and improved rental yield [27][29].

Investment Rating - The report initiates coverage on BOC Aviation (2588 HK) with an "Overweight" rating and a target price of HKD 69 92, representing a 24x PB multiple for 2024 [1][8] Core Views - BOC Aviation is a leading aircraft leasing company with a competitive edge in transaction structuring, low-cost financing, negotiation capabilities, and aircraft asset management [1][3] - The company's short-term profitability was impacted by the pandemic and the Russia-Ukraine conflict, but its cash flow remained stable due to robust legal frameworks in the aviation leasing industry [1] - With the recovery of global aviation demand and potential interest rate declines, BOC Aviation's profitability is expected to surpass pre-pandemic levels [1][4] Business Overview - BOC Aviation operates primarily in operating leases, sale-and-leaseback, and third-party asset management services, with a fleet of 426 owned aircraft as of December 2023 [1] - The company's fleet is well-diversified, with 80% consisting of narrow-body aircraft, and it has a strong order book of 224 aircraft as of December 2023 [30][51] - BOC Aviation's revenue and profitability have shown resilience, with 2023 revenue reaching USD 2 46 billion, up 6 7% YoY, and net profit recovering to USD 763 9 million [33] Competitive Advantages - **Transaction Structuring**: The company maintains an effective tax rate of around 10%, lower than peers, due to its expertise in structuring cross-border transactions [1][43] - **Low-Cost Financing**: BOC Aviation benefits from a strong credit rating, long operating history, and support from its parent company, Bank of China, enabling it to maintain a low debt cost of around 3% annually [1][45] - **Negotiation Power**: With a stable and experienced management team, the company has strong bargaining power with suppliers and customers, enhancing its competitiveness [1][52] - **Aircraft Asset Management**: The company's strategy of customer diversification, flexible operational adjustments, and active aircraft trading improves fleet utilization and investment returns [1][54] Financial Projections - Revenue is forecasted to grow to USD 2 5 billion, USD 2 68 billion, and USD 2 92 billion for 2024-2026, with net profit expected to reach USD 710 million, USD 770 million, and USD 880 million, respectively [1][71] - EPS is projected at USD 1 02, USD 1 10, and USD 1 27 for 2024-2026, with ROE stabilizing at around 11 4%-12 1% [1][71] Industry Outlook - Global aviation demand is recovering, with 2023 passenger traffic reaching 94 1% of 2019 levels, driving demand for aircraft leasing [61] - Aircraft values and lease rates have rebounded post-pandemic, benefiting lessors like BOC Aviation [63] - A potential decline in interest rates could further enhance the company's profitability by reducing financing costs [64] - Boeing forecasts a demand for 42,595 new aircraft globally over the next 20 years, with China accounting for 8,560 of these, indicating significant growth potential for the leasing industry [66]

Financial Performance - Operating revenue and other income increased by 7% to $2.5 billion[6] - Record net profit after tax reached $764 million, compared to $20 million in 2022[8] - Core net profit after tax was $547 million, excluding the after-tax amount of $217 million from the recovery of Russian aircraft[6] - The company achieved a record net profit of $764 million in 2023, significantly up from $20 million in the previous year, surpassing the 2019 record of $702 million[23] - The net profit after tax for 2023 was $764 million, with a return on equity of 14.0%[44] - Pre-tax profit rose significantly to $861 million in 2023 from $29 million in 2022[86] - Net profit after tax increased to $764 million in 2023, up from $20 million in 2022[88] - The overall cost and expenses decreased by 29.7% to $1.6 billion in 2023, compared to $2.28 billion in 2022, primarily due to lower aircraft impairment and other operational efficiencies[70] Assets and Liabilities - Total assets as of December 31, 2023, amounted to $24.2 billion, a 10% increase from 2022[8] - Total assets grew by 9.5% to $24.2 billion as of December 31, 2023, from $22.1 billion in 2022[90] - Total liabilities increased by 9.2% to $18.4 billion in 2023 from $16.9 billion in 2022[91] - The company raised $4.1 billion in new debt financing, including $2.5 billion in loans and $1.7 billion in bonds[6] - The company increased its debt by $1.4 billion in 2023, with total liabilities rising by $1.6 billion[52] - Loans and borrowings rose by 9.2% from $15.1 billion on December 31, 2022, to $16.5 billion on December 31, 2023, driven by the issuance of $1.7 billion in notes and increased borrowings[99] Fleet and Operations - The fleet utilization rate reached 99% as of December 31, 2023[14] - The company executed a record 348 transactions in 2023, including commitments to purchase 95 aircraft[15] - The order book includes 224 aircraft, with a diverse customer base covering 91 airlines across 45 countries and regions[15] - The company successfully purchased 65 aircraft in 2023, bringing the total fleet to 460 owned and managed aircraft[24] - The average age of the fleet was 4.6 years at the end of 2023, with 77% of the fleet consisting of the latest technology aircraft[25] - The average remaining lease term for the company's aircraft is 8.1 years, with 76% of leases expiring in 2030 or later[39] Revenue Sources - The total operating revenue reached $2.46 billion in 2023, with lease rental income accounting for 78% of this total[34] - Lease rental income increased by 7.1% to $1.91 billion in 2023 from $1.78 billion in 2022, driven by improved aircraft utilization and favorable leasing terms[70] - Financing lease interest income surged by 69.4% to $0.69 billion in 2023 from $0.41 billion in 2022, with a rental yield of 6.6% in 2023 compared to 6.2% in 2022[73] - Other income increased by 220.4% to $0.317 billion in 2023, up from $0.099 billion in 2022, mainly due to insurance claims related to aircraft detained in Russia[78] Dividends and Shareholder Returns - The board proposed a final dividend of $0.2721 per share, with total dividends for 2023 reaching $0.3852 per share, representing 35% of net profit after tax[6] Management and Governance - Significant management changes occurred, with new appointments for CEO and CFO effective January 1, 2024[20] - The company is committed to high standards of corporate governance, adhering to relevant laws and regulations in Hong Kong and Singapore[154] - The board of directors is responsible for strategic leadership and control, ensuring effective oversight of management and compliance with corporate governance practices[162] - The company emphasizes risk management and internal control as part of its corporate governance strategy[163] Corporate Strategy and Future Outlook - The company expects further growth in 2024, driven by the recovery of cross-border travel in the Asia-Pacific region[27] - The company plans to implement cost-cutting measures aimed at reducing operational expenses by 5% in the upcoming year[138] - The company is exploring partnerships with key industry players to drive further growth and innovation[138] Employee and Diversity Initiatives - Female employees represent 50% of the total workforce and 26% of the management team, maintaining a stable gender ratio[170] - The company aims to maintain a female employee ratio of at least 45% in the workforce[170] - The company has adopted a board diversity policy, reviewed in December 2022 and December 2023, to ensure a balanced skill set and diverse perspectives[168]

2024年03月27日 公 司点评 公 买入 / 维持 司 中银航空租赁(02588) 研 究 目标价: 昨收盘:60.15 中银航空租赁 2023 年报点评：机队保持领先，业绩稳健增长 事件：中银航空租赁公布2023年年度报告，报告期内公司实现经营 ◼ 走势比较 收入及其他收入总额24.6亿美元，同比+6.7%；实现税后净利润7.6亿美 元，其中核心税后净利润（剔除滞俄飞机收回款项）为5.5亿美元，同比 20% +3.8%。公司计划派发 0.3 美元/股的末期股利，2023 财年总股息达 0.4 太 10% 美元/股，现金分红比例维持35%。 平 供需缺口推高租赁收益率。需求端，年内全球航空业实现复苏，IATA 0% 洋 (10%)72/3/32 8/6/32 02/8/32 1/11/32 31/1/42 62/3/42 数 供据 给显 端示 ，波20 音23 及年 空客 客运 生量 产同 的比 客+3 机7 同%， 比1 仅2月 +6客 %,运 飞量 机达 交到 付2 量01 较9年 20水 18平 年的 的9 峰8% 值。 证 (20%) 低23%。供需缺口推高飞机估值和租赁费率，报告期内公司单架飞机 ...