BOC Aviation has the potential to grow

BOC Aviation Leasing (2588) is the world’s leading aircraft operating leasing company, with the recent increase in aviation demand, performance growth potential. In the first quarter of this year, the Group’s aircraft utilization rate was 99.3%. At the end of March this year, the Group owned and hosted a total of 293 aircraft, the average net weight of the fleet after the average age of 3.2 years, the average remaining lease period of 7.4 years. In addition, the Group in April this year, to the Turkish Airlines to buy two Boeing aircraft, and will be rented by the Turkish Airlines, the Group also earlier to 1.052 billion US dollars to Airbus (Airbus) to buy six new airplane aircraft.

The Group continued to grow well last year. Last year, the Group’s total operating income and other income increased 9% yoy to RMB1,193 million, with rental income rising 7.5% yoy to US $ 1.048bn, while interest and fee income increased by nearly RMB2.7676 mil. During the period, the Group’s net profit rose 22% to $ 418 million, and the net profit margin increased from 31.5% in 2015 to 35% in 2016.

Extension team size 39.5 yuan to buy

As at the end of December last year, the Group’s total equity increased 38.6% year on year to US $ 3.4 billion, mainly the initial public offering of US $ 550 million and undistributed profits. The debt ratio decreased from 3.7 times at the end of 2015 to the end of 2016 2.6 times. However, the cost of capital increased from 2% in 2015 to 2.5%. At the end of the period, cash and time deposits increased by 10.2% to $ 558 million, and no more than $ 4 billion of committed credit lines would be withdrawn to support the continued expansion of fleet size. The MACD bear gap narrowed, short-term trend is expected to improve, can be considered 39.5 yuan to absorb, the rebound resistance of 43 yuan, but the trend of the main line, , Do not fall less than 38.5 yuan continued to hold. (The author for the SFC licensees, did not hold the shares)