Bank of China rents fleet income to see pretty

BOC Aviation Leasing (02588) is a leading global aircraft operating leasing company principally engaged in aircraft leasing, as well as aircraft leasing management and other related businesses. Benefited from the strong support of the controlling shareholder of Bank of China (03988), the Group’s average cost of capital is low and the credit rating is quite stable.

At the end of June this year, the Group owned, managed or already ordered a total of 493 aircraft, of which a total of 297 aircraft owned and hosted by the fleet, the average netting of the existing fleet after the average age of about 3.1 years, the average remaining lease For 7.8 years, while the order book includes 196 aircraft. In the second quarter, a total of 18 aircraft deliveries were completed and 22 rental commitments were added.

The Group expects that the total number of aircraft delivered this year has increased to 80, of which 95% have pledged to rent, but still actively expand the fleet size. Earlier this month, the Group purchased 10 Boeing 737 MAX10 aircraft with a total price of $ 1.25 billion for aircraft catalogs and is expected to be delivered in 2021.

In recent years, the rapid increase in international aviation demand, aviation leasing prospects to maintain rapid growth, Bank of China Airlines to actively increase the fleet size, I believe that future business prospects. At current prices, the Bank of China P / E price of about 8 times, compared with the same industry China aircraft leasing (01848) about 9 times lower, may be considered to absorb.