Analyst Jason Sum from DBS maintained a Buy rating on BOC Aviation and increased the price target to HK$88.00 from HK$84.00.
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Jason Sum has given his Buy rating due to a combination of factors that highlight BOC Aviation’s strong market position and growth potential. The company’s core net profit increased by 20% year-over-year in the first half of 2025, aligning with expectations and demonstrating solid financial performance. Additionally, BOC Aviation has improved earnings visibility with longer lease extensions and secured placements, which provide stability and predictability in future revenue streams.
Furthermore, the company’s competitive funding costs and premium asset quality, including a young fleet and significant global presence, position it well for long-term success. The projected 10%-15% compound annual growth rate in core earnings from FY24 to FY27 is supported by factors such as increased aircraft deliveries, repricing of leases, and attractive sales margins. The current low gearing also offers potential for growth through debt-funded acquisitions and financing. These elements, combined with the favorable market conditions of aircraft shortages, underpin Jason Sum’s Buy rating for BOC Aviation.
According to TipRanks, Sum is a 4-star analyst with an average return of 19.5% and a 74.60% success rate. Sum covers the Industrials sector, focusing on stocks such as China Eastern Airlines Corporation Limited Class H, China Southern Airlines Company Limited Class H, and China Aircraft Leasing Group Holdings.
In another report released on September 9, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a HK$79.00 price target.