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BOC Aviation
(2588)
Select Model
Select Model
Rating:66Neutral
Price Target:
HK$85.00
â–²(16.76% 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 Lease Revenue
Operating leases provide contracted rental income over multi-year terms, creating a recurring revenue base. This model can support earnings visibility and durable customer relationships, provided fleet utilization, airline credit quality and lease pricing remain sound.
Negative Factors
High Leverage
High leverage is structural to aircraft leasing but increases sensitivity to funding costs, refinancing access and aircraft values. Adverse financing or asset-market conditions could compress spreads and reduce financial flexibility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Lease Revenue
Operating leases provide contracted rental income over multi-year terms, creating a recurring revenue base. This model can support earnings visibility and durable customer relationships, provided fleet utilization, airline credit quality and lease pricing remain sound.
Read all positive factors
BOC Aviation (2588) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$51.74B
Dividend Yield4.76%
Average Volume (3M)992.76K
Price to Earnings (P/E)8.3
Beta (1Y)0.24
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. Volume1,166,448
30 Day Avg. Volume992,762
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$95.15Price Target Upside30.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.16
Revenue Forecast (FY)HK$2.75B
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 by owning aircraft and leasing them to airlines under operating lease arrangements, earning recurring lease rental income over the lease term. It typically purchases aircraft directly from manufacturers (and/or v...
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 | 1.92B | 1.37B | 1.37B | 1.35B | 1.11B | 1.16B |
| 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
Neutral
72.80
Price Trends
75.88
Negative
76.45
Negative
76.51
Negative
Market Momentum
-0.52
Negative
50.36
Neutral
69.80
Neutral
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 72.8 is below the 20-day moving average (MA) of 73.96, below the 50-day MA of 75.88, and below the 200-day MA of 76.51, indicating a neutral trend. The MACD of -0.52 indicates Negative momentum. The RSI at 50.36 is Neutral, neither overbought nor oversold. The STOCH value of 69.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2588.
BOC Aviation Peers Comparison
UnderperformOutperform
Sector (63)
HK:2588
BOC Aviation
74.55
6.57
9.66%
HK:1848
China Aircraft Leasing Group Holdings
3.71
-0.60
-13.86%
BOC Aviation Corporate Events
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...
BOC Aviation Grows Fleet and Orderbook as Utilisation Stays at 100%
Jul 9, 2026
BOC Aviation reported that as of 30 June 2026 it managed a total portfolio of 811 aircraft and engines, including 479 owned assets, 11 managed units and 321 on order, with an average owned fleet age of five years and an average remaining lease ter...
BOC Aviation Grants HK$173 Million in RSU Awards to Executives and Staff
Jul 2, 2026
BOC Aviation has granted restricted share unit awards covering 2,135,195 shares to its chairman, executive director, subsidiary directors and other employees under its long-term incentive plan. The awards, representing about 0.308% of issued share...
BOC Aviation Buys and Leases Back Three Airbus A350-1000s to Qatar Airways
Jun 30, 2026
BOC Aviation has agreed to purchase three Airbus A350-1000 aircraft from Qatar Airways and lease them back to the carrier under long-term agreements. The aircraft were all delivered in late 2025, and the deal falls within the company’s ordin...
BOC Aviation Sets HKD Exchange Rate for 2025 Final Dividend
Jun 15, 2026
BOC Aviation has announced the exchange rate and Hong Kong dollar equivalent for its previously declared final dividend for the financial year ended 31 December 2025. The final dividend has been set at USD 0.3061 per share, which will be paid as H...
BOC Aviation Sets HK$2.3983 Final Dividend Per Share After FX Conversion
Jun 15, 2026
BOC Aviation has confirmed the Hong Kong dollar amount of its previously announced final dividend for the 2025 financial year, following the conversion of the declared US$0.3061 per share into local currency. Using an exchange rate of US$1 to HK$7...
BOC Aviation Strengthens Board With Appointment of Veteran Banker Jason Yeung
Jun 2, 2026
BOC Aviation has appointed veteran banker and compliance expert Jason Yeung Chi Wai as an independent non-executive director, following shareholder approval at its 2 June 2026 annual general meeting. He will also join the company’s remunerat...
BOC Aviation Sets Post-AGM Board and Committee Line-Up
Jun 2, 2026
BOC Aviation Limited announced the composition of its Board of Directors following the conclusion of its annual general meeting on 2 June 2026, confirming a structure that includes executive, non-executive and independent non-executive directors l...
BOC Aviation Wins Strong Shareholder Backing at AGM, Confirms 2025 Dividend
Jun 2, 2026
BOC Aviation shareholders overwhelmingly approved all resolutions at the 2 June 2026 annual general meeting, including the adoption of the 2025 financial statements and the declaration of a final dividend of US$0.3061 per share. Investors also bac...
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.