BOC Aviation 2588

Re: BOC Aviation 2588

Postby winston » Wed Aug 21, 2019 11:12 am

not vested

BOC AVIATION(2588)

Analysis:

The Group announced the interim result in 2019.

Revenue reached USD 930 mn, a YoY increase of 12.8%.

Net profit reached USD 320 mn, up by 8.1% YoY.

As at 30 June 2019, the group has a portfolio of 499 owned, managed and committed aircraft, where 314 aircraft are owned with an average age of 3.1 years and an average remaining lease term of 8.2 years, each weighted by net book value.

Currently, the orderbook had 162 aircraft scheduled for delivery before 2021, but 18 aircraft scheduled for delivery in the first half of 2019 were delayed, including 12 Airbus aircraft delayed primarily due to industrial constraints and six Boeing aircraft delayed primarily due to the 737 MAX grounding.

Moreover, the Group sold 11 aircraft, including two managed aircraft.

The net lease yield dropped 0.2% to 8.4%.

IATA expects this pace to be maintained for the balance of 2019, with 5% passenger traffic growth projected, which should benefit the future performance of the Group.

Strategy:
Buy-in Price: $67.50, Target Price: $73.00, Cut Loss Price: $60.00

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: BOC Aviation 2588

Postby winston » Wed Sep 25, 2019 10:50 am

not vested

BOC AVIATION(2588)

Analysis:

The group is a leading global aircraft operating leasing company in Asia. ''

In the first half of 2019, the revenue was US$830 million, an increase of 10.5% year-on-year.

The net profit for the first half of 2019 was HK$320 million, an increase of 8.1% year-on-year.

The group serves 92 airlines in 40 countries and regions, with a total of 499 aircraft owned, managed and ordered, of which 314 aircraft are owned (as of June 30, 2019).

The average age weighted by net book value is 3.1 years, and the average remaining lease term is 8.2 years.

The order book includes 162 aircraft and will be delivered between 2019 and 2021.

Although the current economic downside risks are getting higher, the outlook for the aviation industry is still generally optimistic.

The International Air Transport Association (IATA) reported a passenger growth rate of 4.7% for the six months ended June 30, 2019.

IATA expects passenger growth to maintain a projected 5% growth rate for passenger traffic over the remainder of 2019, and expects airline revenue to be $28 billion in 2019.

In addition, even if the aviation industry is affected by the economic downturn, the group and sign long-term contracts with airlines and collect rents from them, so as long as the airlines are not bankrupt, the group`s income will remain stable.

Strategy:
Buy-in Price: $70.00, Target Price: $78.50, Cut Loss Price: $65.00

Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118527
Joined: Wed May 07, 2008 9:28 am

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