BOC Aviation (2588) AI Stock Analysis

• Market Cap: $47.89B
• Dividend Yield: 4.7%
• Average Volume (3M): 736.61K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.34
• Revenue Growth: 1.58%
• EPS Growth: -16.66%
• Country: HK
• Employees: 204
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 3.81
• Shares Outstanding: 694,010,300
• 10 Day Avg. Volume: 681,489
• 30 Day Avg. Volume: 736,610
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.62
• Enterprise Value/Revenue: 79.02
• Enterprise Value/Gross Profit: 293.14
• Enterprise Value/Ebitda: 126.60
• 1Y Price Target: $83.23
• Price Target Upside: 20.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: HK$79.00 ▲(14.49% Upside)

BOC Aviation's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's consistent revenue growth, improved profitability, and robust cash flow management highlight its financial strength. While technical indicators suggest mixed momentum, the stock's low P/E ratio and high dividend yield enhance its attractiveness. Continued focus on managing leverage and maintaining operational efficiency will be crucial for future performance.

Positive Factors

Negative Factors

BOC Aviation Business Overview & Revenue Model

Company Description

BOC Aviation Limited, together with its subsidiaries, operates as an aircraft operating leasing company worldwide. It offers a range of services to airlines and aircraft owners, including direct operating leases, sale and leaseback facilities, and third-party asset management. The company also provides aircraft remarketing and technical management services to airlines, banks, and other investors; arranges debt financing and other financial services for airlines and aircraft investors; and sells aircrafts. As of December 31, 2021, it had a fleet of 521 owned, managed, and on order aircraft. The company was incorporated in 1993 and is headquartered in Singapore. BOC Aviation Limited is a subsidiary of Sky Splendor Limited.

How the Company Makes Money

BOC Aviation generates revenue primarily through the leasing of aircraft to airlines and other aviation clients. The company earns money from long-term lease agreements, which provide steady income over the lease term. Additionally, BOC Aviation benefits from the sale of aircraft, allowing it to realize gains on the sale of its leased assets. Key revenue streams include operating lease rentals, finance lease income, and aircraft sales. The company also engages in aircraft management services, which contribute to its earnings. Strategic partnerships with major aircraft manufacturers and financial institutions help BOC Aviation secure favorable terms and financing options, contributing to its profitability.

BOC Aviation Financial Statement Overview

Summary

BOC Aviation has demonstrated strong financial performance with consistent revenue growth and improved profitability margins. The company shows resilience with better cash flow management, despite high leverage. Continued focus on maintaining operational efficiency and managing debt levels will be vital for sustaining its positive trajectory.

Income Statement

BOC Aviation has demonstrated consistent revenue growth with a notable increase from $2.07 billion in 2023 to $2.20 billion in 2024, reflecting a revenue growth rate of 6.11%. The gross profit margin is stable at approximately 26.95% in 2024, although the EBIT margin is not calculable due to the EBIT being zero. EBITDA margin remains strong at 62.42%, indicating robust operational efficiency. Net profit margin improved to 42.05% from 36.92% in the previous year, highlighting enhanced profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio of 2.61, which suggests substantial leverage. However, the return on equity (ROE) improved to 14.52% in 2024, indicating effective use of equity to generate profits. The equity ratio of 25.39% suggests a moderate level of equity financing relative to total assets, which is a positive indicator of financial stability despite the high leverage.

Cash Flow

BOC Aviation shows a significant turnaround in free cash flow, increasing from a negative $1.36 billion in 2023 to a positive $94 million in 2024. The operating cash flow to net income ratio is 2.78, highlighting strong cash generation relative to net income. Additionally, the significant improvement in free cash flow to net income ratio from negative to 0.10 indicates better cash management and reduced capital expenditure burden.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.20B	2.07B	1.92B	2.04B	1.96B
Gross Profit	591.94M	548.89M	570.42M	696.06M	1.96B
EBITDA	1.37B	1.35B	1.11B	1.16B	1.19B
Net Income	923.59M	763.90M	20.06M	561.32M	509.84M
Balance Sheet
Total Assets	25.05B	24.17B	22.07B	23.88B	23.57B
Cash, Cash Equivalents and Short-Term Investments	671.33M	391.82M	408.29M	487.61M	408.25M
Total Debt	16.59B	16.53B	15.14B	16.72B	16.71B
Total Liabilities	18.69B	18.42B	16.87B	18.61B	18.79B
Stockholders Equity	6.36B	5.75B	5.20B	5.27B	4.78B
Cash Flow
Free Cash Flow	94.42M	-1.36B	800.56M	-319.98M	-2.81B
Operating Cash Flow	2.57B	2.28B	2.01B	1.80B	1.83B
Investing Cash Flow	-1.29B	-2.80B	193.04M	-1.06B	-4.25B
Financing Cash Flow	-1.00B	518.72M	-2.29B	-671.68M	2.58B

BOC Aviation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 69.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2588, the sentiment is Neutral. The current price of 69 is below the 20-day moving average (MA) of 69.53, below the 50-day MA of 70.60, and above the 200-day MA of 62.05, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 9.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2588.

BOC Aviation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2588	72 Outperform	$47.89B	7.64	12.82%	4.70%	1.58%	-16.66%
3877	66 Neutral	HK$11.78B	6.23	14.85%	8.11%	0.56%	-12.66%
1848	63 Neutral	HK$3.38B	12.64	4.83%	6.64%	-7.56%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

BOC Aviation Corporate Events

BOC Aviation Announces New Board of Directors

BOC Aviation Limited has announced changes to its Board of Directors, effective from September 10, 2025. The new board structure includes Ms. Zhang Xiaolu as Chairman and Non-executive Director, with Mr. Steven Matthew Townend serving as the CEO and Managing Director. The announcement reflects a strategic alignment in leadership roles, potentially impacting the company’s governance and strategic direction.

The most recent analyst rating on (HK:2588) stock is a Buy with a HK$78.00 price target. To see the full list of analyst forecasts on BOC Aviation stock, see the HK:2588 Stock Forecast page.

BOC Aviation Announces Resignation of Non-Executive Director

BOC Aviation Limited announced the resignation of Ms. Li Ke from her roles as Non-executive Director, and member of both the remuneration and nomination committees, effective 10 September 2025. The resignation is due to work arrangements, and Ms. Li Ke has confirmed no disagreements with the Board. The company expressed gratitude for her contributions, and this change may impact the company’s governance structure.

The most recent analyst rating on (HK:2588) stock is a Buy with a HK$78.00 price target. To see the full list of analyst forecasts on BOC Aviation stock, see the HK:2588 Stock Forecast page.

BOC Aviation Declares Interim Dividend for 2025

BOC Aviation Limited has announced an interim cash dividend of USD 0.1476 per share for the six months ending 30 June 2025. The dividend will be paid on 13 October 2025, with the record date set for 26 September 2025. This announcement reflects the company’s ongoing financial health and commitment to delivering shareholder value, reinforcing its stable position in the aviation leasing industry.

The most recent analyst rating on (HK:2588) stock is a Buy with a HK$82.00 price target. To see the full list of analyst forecasts on BOC Aviation stock, see the HK:2588 Stock Forecast page.

BOC Aviation Reports Mixed Interim Results with Revenue Growth but Profit Decline

BOC Aviation Limited reported its interim financial results for the first half of 2025, showing a 6% increase in total revenues to US$1,242 million compared to the previous year. However, net profit after tax fell by 26% to US$342 million, primarily due to the absence of non-recurring write-backs related to aircraft in Russia, which had boosted profits in 2024. The company declared a reduced interim dividend of US$0.1476 per share, reflecting the profit decline. Despite this, BOC Aviation maintained strong liquidity with US$533 million in cash and significant undrawn credit facilities, alongside a record operating cash flow of US$1.0 billion.

The most recent analyst rating on (HK:2588) stock is a Buy with a HK$82.00 price target. To see the full list of analyst forecasts on BOC Aviation stock, see the HK:2588 Stock Forecast page.

BOC Aviation to Review Financials and Consider Interim Dividend

BOC Aviation Limited announced that its board of directors will meet on August 21, 2025, to review and approve the company’s unaudited consolidated financial statements for the first half of 2025. The board will also consider declaring an interim dividend and address other business matters, which could impact the company’s financial strategy and shareholder returns.

The most recent analyst rating on (HK:2588) stock is a Buy with a HK$82.00 price target. To see the full list of analyst forecasts on BOC Aviation stock, see the HK:2588 Stock Forecast page.

BOC Aviation Announces Board and Committee Restructuring

BOC Aviation Limited announced changes to its Board of Directors and committee memberships effective from August 7, 2025. These changes reflect a strategic realignment within the company, potentially impacting its governance and operational oversight, which could influence its market positioning and stakeholder relations.

The most recent analyst rating on (HK:2588) stock is a Buy with a HK$82.00 price target. To see the full list of analyst forecasts on BOC Aviation stock, see the HK:2588 Stock Forecast page.

BOC Aviation Announces Leadership Change in Strategy Committee

BOC Aviation Limited announced a leadership change within its Strategy and Budget Committee, effective August 7, 2025. Ms. Zhang Xiaolu, the current Chairman of the Board and a Non-executive Director, will assume the role of chairman of the committee, succeeding Mr. Jin Hongju, who will continue as a committee member. This strategic leadership shift is poised to influence the company’s future planning and budgetary strategies, potentially impacting its operational focus and stakeholder interests.

The most recent analyst rating on (HK:2588) stock is a Buy with a HK$82.00 price target. To see the full list of analyst forecasts on BOC Aviation stock, see the HK:2588 Stock Forecast page.