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 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部分內容而產生 或因倚賴該等內容而引致的任何損失承擔任何責任。 BOC AVIATION LIMITED 中銀航空租賃有限公司 * （於新加坡共和國註冊成立的有限公司） 股份代號：2588 截至2023年12月31日止年度 全年業績公告 財務摘要 本集團截至2023年12月31日止年度的財務摘要如下： 在本公告中使用但未定義的詞彙詳見第82至85頁。 由於四捨五入，本公告中數字的加總可能不完全等同於所提供的總數，百分比可能 不準確反映絕對數字。 1 包括派付予於2023年9月29日營業結束時已登記股東的中期股息每股0.1131美元。 * 僅供識別 – 1 – • 經營收入及其他收入總額同比增長7%至25億美元 • 稅後淨利潤創紀錄達7.64億美元，2022年為0.20億美元 • 核心稅後淨利潤為5.47億美元（剔除滯俄飛機收回款項稅後淨額2.17億美元）。 2022年剔除滯俄飛機減記影響淨額的核心稅後淨利潤為5.27億美元 • 每股收益為1.10美元，每股淨資產為8. ...

2023年 中期報告 P BOC AVIATION BOC AVIATION LIMITED 中特航空組織有限公司 《冷新加坡共和壓計用成立的有限公司》 政份代表: 2588 •獲供購房 持續投資 穩步增長 01.110 and an ADING A 值公司即將迎來成立30週年之際，我們欣 然宣佈2023年上半年恢復增長，稅後淨利 潤為2.62億美元、每股收益為0.38美元。而 2022年上半年同期稅後淨虧損3.13億美 元、每股虧損0.45美元。2022年上半年的 核心稅後淨利潤為2.06億美元。 董事會批准派發中期股息每股0.1131美 元，相當於稅後淨利潤的30%，較2022年 上半年的中期股息每股0.0889美元增加 27%。中期股息佔稅後淨利潤的比例自 2017年以來始終一致，顯示出本公司現金 流量持續強勁及相關業務明顯增長。 全球客運總量的增長是公司業務的一大 推動力，截至2023年6月，其水平接近 2019年的水平，反映了全球大多數主要市 場的活躍程度。根據國際航空運輸協會 (IATA)的數據，2023年上半年不僅客運 量增長迅速，較2022年上半年增長47%， 而且2023年6月的客座率（衡量 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部分內容而產生或因倚賴該等內容 而引致的任何損失承擔任何責任。 BOC AVIATION LIMITED 中 銀 航 空 租 賃 有 限 公 司 * （於新加坡共和國註冊成立的有限公司） 股份代號：2588 截至2023年6月30日止六個月的 中期業績公告 財務概覽 我們截至2023年6月30日止六個月的財務概覽如下： • 經營收入及其他收入總額為10.61億美元 • 稅後淨利潤為2.62億美元，2022年上半年為稅後淨虧損3.13億美元而核心稅後 淨利潤1為2.06億美元 • 每股收益為0.38美元，較2022年上半年的每股核心收益0.30美元上升27% • 中期股息為每股0.1131美元，2022年上半年為每股0.0889美元 • 資產總額較2022年12月31日上升4%至2023年6月30日的229億美元，反映對 飛機的持續投資 ...

Financial Performance - Total operating revenue and other income increased by 6% to $2.307 billion[4] - Net profit after tax was $20 million, down from $561 million in 2021, impacted by a $507 million impairment related to Russian aircraft[4] - Core net profit after tax, excluding the impairment, was $527 million, a decrease of 6% from 2021[5] - Operating cash flow (excluding interest) increased by 14% to $1.5 billion[4] - Total assets as of December 31, 2022, were $22.071 billion, a decrease of 7.6% from the previous year[5] - The company achieved a pre-tax profit of $29 million and a net profit of $20 million, a decrease primarily due to the impact of the Russia-Ukraine conflict[16] - Core pre-tax profit, excluding the impact of aircraft impairment, was $598 million, with core net profit at $527 million, showing minimal change compared to 2021[19] - Total operating revenue and other income increased by 5.7% to $2.3 billion, while total costs and expenses rose by 47.5% to $2.3 billion, mainly due to asset write-downs[61] - Net profit for the year decreased by 96.4% to $20.1 million in 2022, compared to $561.3 million in 2021[81] Liquidity and Capital Structure - The company maintained strong liquidity with cash and cash equivalents of $392 million and undrawn committed loan facilities of $4.9 billion, totaling $5.3 billion in liquidity[4] - The company’s capital expenditure net amount was $1.2 billion, affected by delays in aircraft deliveries, with a financing requirement of $900 million, primarily sourced from bank channels[22] - The company raised over $38 billion in debt financing since its inception, with a strong investment-grade credit rating of A- from both Fitch and S&P[26][27] - Total liabilities decreased by 9.4% from $18.61 billion on December 31, 2021, to $16.87 billion on December 31, 2022, primarily due to repayments of loans[85] - Total equity as of December 31, 2022, was $5.20 billion, a decrease of 1.2% from $5.27 billion on December 31, 2021, mainly due to dividends paid[95] Aircraft Fleet and Transactions - The fleet consisted of 633 aircraft, with an average remaining lease term of 8.1 years and a utilization rate of 96%[11] - The company executed 298 transactions in 2022, including commitments to purchase 147 aircraft and delivery of 34 aircraft[11] - The year-end order book included 206 aircraft, with significant orders placed with Airbus and Boeing for a total of 120 aircraft[11] - The company delivered 34 aircraft to airline customers in 2022, bringing the total owned and managed fleet to 427 aircraft[21] - The average remaining lease term for the owned fleet is 8.1 years, with approximately 80% of leases set to expire in 2029 or later[32][33] Revenue Sources and Trends - The total operating income for 2022 was $2.307 billion, with lease rental income contributing 86%, interest and fees at 11%, and aircraft sales net income at 3%[29] - Lease rental income decreased by 4.3% to $1.78 billion in 2022 from $1.86 billion in 2021, mainly due to the termination of leases with Russian airlines[64] - Income from lease terminations surged by 201.8% to $222.9 million in 2022, primarily due to lease terminations with Russian airlines[68] - Other income rose by 323.1% to $99.0 million in 2022, driven by previously unutilized maintenance reserves and deposits[69] Corporate Governance and Management - The company adopted and complied with the corporate governance code principles and all applicable code provisions for the year ended December 31, 2022[144] - The company is committed to high standards of corporate ethics, integrity, transparency, and accountability to enhance shareholder value[144] - The board consists of five non-executive directors, four independent non-executive directors, and two executive directors, ensuring a diverse governance structure[156] - The company has achieved a gender diversity goal with three female directors, exceeding the target of at least two female directors[160] - The board has a clear division of responsibilities between the chairman and the CEO, enhancing governance effectiveness[155] Risk Management and Internal Controls - The audit committee oversees the establishment and maintenance of risk management and internal control systems, ensuring their effectiveness[176] - The company conducts annual assessments of its risk management and internal control systems, confirming their effectiveness and adequacy in 2022[179] - The internal audit department is responsible for reviewing compliance with policies and procedures across the organization[177] - The company has established procedures for identifying, controlling, and reporting major risks, including financial and operational risks[179] Future Outlook and Strategic Initiatives - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to $1.32 billion[121] - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative leasing solutions[121] - The company is expanding its market presence in Asia, targeting a 25% increase in market share over the next two years[121] - Research and development investments increased by 30%, focusing on advanced aircraft technology and sustainability initiatives[121]

Financial Performance - BOC Aviation recorded a core after-tax net profit of $206 million for the first half of 2022, excluding the impact of impairment on 17 aircraft in Russia, while including the impairment, the after-tax net loss was $313 million, or a loss of $0.45 per share [3]. - The company recorded a net loss of $313 million for the first half of 2022, compared to a net profit of $254 million in the same period of 2021, primarily due to an impairment of $804 million related to 17 aircraft in Russia [28]. - The net loss attributable to the company for the current period was $(312,548) thousand, compared to a profit of $253,926 thousand in the same period of 2021, indicating a significant decline [109]. - The company reported a basic and diluted loss per share of $(0.45), compared to earnings of $0.37 per share in the same period of the previous year [108]. - The company incurred a pre-tax loss of $346,865,000 for the first half of 2022, compared to a pre-tax profit of $287,623,000 in the same period of 2021 [114]. Revenue and Income - Total operating revenue and other income increased by 8% to $1.196 billion compared to the first half of 2021 [7]. - Total revenue for the first half of 2022 increased by 8% to $1.196 billion, including $223 million from the termination of leases with Russian airlines [29]. - The company reported a substantial increase in income from terminated leases, which rose to $222,876 thousand from $73,855 thousand, reflecting a growth of 201.5% [108]. - The company reported a decrease in lease rental income by 5% to $877 million and a 19% decline in core lease rental contributions to $280 million due to aircraft being off-lease and losses from Russian aircraft [29]. Assets and Liabilities - Total assets decreased by 4% to $22.8 billion as of June 30, 2022, primarily due to the impairment of aircraft in Russia [7]. - The total liabilities as of June 30, 2022, included $13,699,906 thousand in non-current liabilities, down from $14,865,627 thousand as of December 31, 2021, indicating a decrease of about 7.8% [156]. - The company's total liabilities decreased to $17,892,587 thousand from $18,613,450 thousand, indicating a reduction of 3.9% [111]. - The net book value of aircraft as of June 30, 2022, was $1.2308 billion, a decrease from $1.5667 billion on December 31, 2021 [137]. Cash Flow and Liquidity - Operating cash flow (excluding interest) rose by 29% to $717 million for the first half of 2022 [7]. - The liquidity position remained strong, with $6 billion in cash and available credit lines as of June 30, 2022 [4]. - The company maintained a strong liquidity position with $454 million in cash and short-term deposits as of June 30, 2022 [9]. - Cash generated from operating activities for the first half of 2022 was $946,169,000, an increase from $797,064,000 in the same period of 2021, representing a growth of about 18.7% [114]. Aircraft and Fleet - The fleet consisted of 608 aircraft, with an average remaining lease term of 8.4 years and an average age of 4.1 years for owned aircraft [10]. - The total number of aircraft owned increased from 380 at the end of 2021 to 390 by June 30, 2022, despite delays in deliveries impacting growth [29]. - The company signed its largest aircraft order in history, committing to purchase 80 Airbus A320NEO series aircraft, which will support future operating revenue [4]. - The company has ordered 181 aircraft for delivery through 2029, with 69% of its owned fleet consisting of the latest technology aircraft as of June 30, 2022, up from 66% at the end of 2021 [32]. Dividends - The company declared an interim dividend of $0.0889 per share, representing 30% of core after-tax net profit, consistent with previous years [3]. - The company declared an interim dividend of $0.0889 per share, representing 30% of adjusted net profit of $206 million, reflecting confidence in cash flow and core business performance [28]. - The proposed interim dividend for the period ending June 30, 2022, is $0.0889 per share, totaling $61,698 thousand, compared to $76,202 thousand for the same period in 2021, representing a decrease of approximately 18.9% [175]. Impairment and Expenses - Aircraft impairment rose by 916.2% from $84 million in the first half of 2021 to $851 million in the first half of 2022, mainly due to an impairment of $804 million on 17 aircraft [42]. - Financial asset impairment losses decreased by 90.6% from $63 million in the first half of 2021 to $6 million in the first half of 2022, as the aviation industry began to recover from the COVID-19 pandemic [45]. - Total costs and expenses decreased from $820 million in the first half of 2021 to $739 million in the first half of 2022, primarily due to reduced financial asset impairment losses and decreased aircraft impairment [40]. Corporate Governance and Compliance - The company has fully complied with the corporate governance code as of June 30, 2022 [94]. - The audit committee consists of three independent non-executive directors and two non-executive directors, ensuring oversight of financial reporting and internal controls [93]. - The financial statements were prepared in accordance with International Accounting Standard 34 and Singapore Financial Reporting Standards (International) 1-34 [106]. Shareholder Information - As of June 30, 2022, Central Huijin Investment Ltd. holds 70% of the company's issued share capital, with China Bank and BOC Investment also holding the same percentage [81]. - The company reported a total of 694,010 thousand shares issued and fully paid as of June 30, 2022, consistent with the same number as of December 31, 2021 [171]. - The company has granted 1,178,077 restricted stock units to directors and key executives as of June 30, 2022, compared to 746,615 units as of December 31, 2021 [188].