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BOC Aviation
(2588)
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Rating:66Neutral
Price Target:
HK$73.00
â–˛(0.27% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by adequate but risk-constrained financial performance, with high leverage and volatile free cash flow offsetting solid revenue/profitability trends. Valuation is a meaningful positive due to the low P/E and strong dividend yield. Technicals add moderate support as the stock trades above key moving averages with mild positive momentum.
Positive Factors
Recurring leasing model
Medium- to long-term aircraft leases provide recurring contractual rental income and support visibility across the portfolio. This business model can make revenue more resilient than transaction-led activities, while global airline exposure enables continued asset deployment and portfolio diversification.
Negative Factors
High leverage
Debt remaining far above equity increases sensitivity to funding costs, refinancing conditions, and changes in aircraft asset values. Although leverage is common in aircraft leasing, this structure limits financial flexibility and can amplify pressure on returns during weaker industry or credit conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring leasing model
Medium- to long-term aircraft leases provide recurring contractual rental income and support visibility across the portfolio. This business model can make revenue more resilient than transaction-led activities, while global airline exposure enables continued asset deployment and portfolio diversification.
Read all positive factors
BOC Aviation (2588) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$49.38B
Dividend Yield5.35%
Average Volume (3M)751.44K
Price to Earnings (P/E)7.9
Beta (1Y)0.31
Revenue Growth-1.72%
EPS Growth-0.06%
CountryHK
Employees216
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)1.15
Shares Outstanding694,010,300
10 Day Avg. Volume784,537
30 Day Avg. Volume751,443
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)0.95
Price to Sales (P/S)2.69
P/FCF Ratio-3.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$93.34Price Target Upside28.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.16
Revenue Forecast (FY)HK$2.72B
BOC Aviation Business Overview & Revenue Model
Company Description
BOC Aviation Limited, along with its affiliated entities, functions worldwide as a company specializing in the operating lease of aircraft. It delivers a comprehensive array of services to airlines and aircraft owners, which include direct operati...
How the Company Makes Money
BOC Aviation primarily makes money through aircraft leasing and related asset management activities:
1) Lease rental income (core revenue stream)
- The company buys aircraft (often directly from manufacturers) and leases them to airlines under op...
BOC Aviation Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
54
Neutral
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.39B | 2.41B | 2.20B | 2.07B | 1.92B | 2.04B |
| Gross Profit | 1.58B | 843.93M | 591.94M | 548.89M | 1.92B | 696.06M |
| EBITDA | 2.31B | 2.15B | 1.37B | 1.35B | 1.90B | 1.92B |
| Net Income | 801.58M | 787.25M | 923.59M | 763.90M | 20.06M | 561.32M |
Balance Sheet | ||||||
| Total Assets | 27.81B | 26.33B | 25.05B | 24.17B | 22.07B | 23.88B |
| Cash, Cash Equivalents and Short-Term Investments | 318.71M | 399.74M | 671.33M | 391.82M | 391.91M | 487.61M |
| Total Debt | 18.45B | 17.16B | 16.59B | 16.53B | 15.14B | 16.72B |
| Total Liabilities | 20.78B | 19.49B | 18.69B | 18.42B | 16.87B | 18.61B |
| Stockholders Equity | 7.03B | 6.84B | 6.36B | 5.75B | 5.20B | 5.27B |
Cash Flow | ||||||
| Free Cash Flow | -2.60B | -2.07B | 94.42M | -1.36B | 800.56M | -319.98M |
| Operating Cash Flow | 2.02B | 2.18B | 2.57B | 2.28B | 2.01B | 1.80B |
| Investing Cash Flow | -3.44B | -2.70B | -1.29B | -2.80B | 193.04M | -1.06B |
| Financing Cash Flow | 1.21B | 249.12M | -1.00B | 518.72M | -2.29B | -671.68M |
BOC Aviation Technical Analysis
Positive
72.80
Price Trends
70.47
Positive
73.14
Negative
75.05
Negative
Market Momentum
-0.07
Negative
58.85
Neutral
70.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2588, the sentiment is Positive. The current price of 72.8 is above the 20-day moving average (MA) of 68.87, above the 50-day MA of 70.47, and below the 200-day MA of 75.05, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 58.85 is Neutral, neither overbought nor oversold. The STOCH value of 70.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2588.
BOC Aviation Peers Comparison
UnderperformOutperform
Sector (63)
HK:2588
BOC Aviation
71.15
6.12
9.42%
HK:1848
China Aircraft Leasing Group Holdings
3.35
-0.82
-19.76%
BOC Aviation Corporate Events
BOC Aviation Expands Modern Fleet and Orderbook as Cash Collections Stay Strong
Oct 8, 2026
BOC Aviation reported that its total portfolio reached 812 aircraft and engines as of 30 September 2026, including 478 owned assets, 11 managed aircraft and 323 on order, with a strong orderbook heavily weighted toward Airbus A320neo and Boeing 73...
BOC Aviation Sets HKD Exchange Rate for Interim Dividend
Oct 6, 2026
BOC Aviation Limited announced the exchange rate for its interim cash dividend for the six months ended 30 June 2026, setting the payout at USD 0.1799 per share, equivalent to HKD 1.4116 per share based on an exchange rate of USD 1 to HKD 7.8467. ...
BOC Aviation Sets HK$1.4116 Interim Dividend Per Share After FX Fix
Oct 6, 2026
BOC Aviation has set the Hong Kong dollar amount for its previously declared interim dividend of US$0.1799 per share for the six months ended 30 June 2026. Using a weighted average exchange rate of US$1 to HK$7.8467 based on purchases made on 5 Oc...
BOC Aviation to Buy 12 Airbus A320NEO Jets for Long‑Term Leases to Avianca
Sep 10, 2026
BOC Aviation has agreed to purchase twelve Airbus A320NEO aircraft from Airbus, with deliveries scheduled for 2029, and will place them on long‑term leases with Colombian carrier Avianca. The transaction, classified as part of the company...
BOC Aviation Updates Global Medium Term Note Programme on SGX
Aug 24, 2026
BOC Aviation has updated its Global Medium Term Note Programme through a supplemental offering circular filed on the Singapore Exchange, signalling continued reliance on debt capital markets to fund its aircraft leasing operations and maintain fin...
BOC Aviation Reshuffles Board Committee Roles to Bolster Governance
Aug 20, 2026
BOC Aviation Limited has reshuffled its board committee memberships, effective 20 August 2026, as part of its corporate governance framework. Non-executive director Jin Yan has moved from the audit committee to the nomination committee, while inde...
BOC Aviation Updates Board and Committee Structure
Aug 20, 2026
BOC Aviation has announced the current composition of its board of directors, confirming the mix of executive, non-executive and independent non-executive members who oversee the aircraft lessor’s governance. The chairman, chief executive of...
BOC Aviation Delivers Higher Interim Profit and Dividend on Record Lease Rental Income
Aug 20, 2026
BOC Aviation reported a 4% year-on-year rise in total revenues and other income to US$1.297 billion for the six months ended 30 June 2026, with net profit after tax increasing 4% to US$357 million and earnings per share reaching US$0.51. The lesso...
BOC Aviation Declares Interim Dividend for First Half of 2026
Aug 20, 2026
BOC Aviation has declared an interim ordinary cash dividend of USD 0.1799 per share for the six months ended 30 June 2026, reflecting its semi-annual distribution policy for the 2026 financial year. The dividend will be paid in Hong Kong dollars, ...
BOC Aviation Sets August Board Meeting to Review Interim Results and Dividend
Aug 7, 2026
BOC Aviation has scheduled a board meeting for 20 August 2026 to review and approve its unaudited consolidated financial statements for the six months ended 30 June 2026. The board will also consider the declaration of an interim dividend and addr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.