BOC AVIATION(HK:02588) HTSC·2025-03-14 03:14Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 82.00 [5][6]. Core Insights - The company's net profit for 2024 is projected to be USD 923.59 million, representing a year-on-year increase of 20.9%. This is attributed to insurance compensation related to Russian aircraft, which boosted profits by USD 115 million [1][3]. - The net leasing yield (NLY) improved by 10 basis points to 7.2%, primarily due to decreasing funding costs in operating lease business. Future demand for aircraft is expected to drive up aircraft values and rental income [1][2]. - The company plans to deliver 47 aircraft in 2025, with capital expenditure remaining at USD 4 billion, consistent with 2024. The overall aircraft delivery situation is expected to improve marginally [1][3]. Summary by Sections Financial Performance - The company's revenue and other income for 2024 is projected at USD 2,557 million, a 3.9% increase from 2023. The net profit attributable to the parent company is expected to be USD 923.59 million [4][24]. - The earnings per share (EPS) for 2024 is estimated at USD 1.33, with a price-to-earnings (PE) ratio of 5.84 [4][24]. Profitability and Valuation - The return on equity (ROE) for 2025 is projected to be 10.53%, with a dividend yield of 4.42% [4][24]. - The target price is based on a price-to-book (PB) ratio of 1.06 times the estimated book value per share (BVPS) of USD 9.92 for 2025 [3][18]. Market Outlook - The global aircraft delivery is expected to reach 1,376 units in 2025, a 22% increase year-on-year, which may alleviate delivery pressures for the company [1][2]. - The company is positioned to benefit from the ongoing recovery in the aviation industry, with expectations of improved aircraft rental rates and values due to supply-demand imbalances [3][18].