China Aircraft Leasing Group Holdings (1848) AI Stock Analysis

• Market Cap: HK$3.56B
• Dividend Yield: 3.78%
• Average Volume (3M): 557.66K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.86
• Revenue Growth: 3.58%
• EPS Growth: 810.26%
• Country: HK
• Employees: 184
• Sector: Industrials
• Sector Strength: 78
• Industry: Rental & Leasing Services
• EPS (TTM): 0.19
• Shares Outstanding: 747,975,000
• 10 Day Avg. Volume: 445,279
• 30 Day Avg. Volume: 557,658
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$5.50
• Price Target Upside: 15.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: HK$5.50 ▲(15.55% Upside)

The stock's overall score is driven by strong technical indicators and a reasonable valuation, despite financial performance challenges. The bullish momentum is a significant positive, but the overbought signals warrant caution. Financial risks due to high leverage and negative free cash flow are notable concerns.

Positive Factors

Earnings recovery

Rising lease rates and asset sales to drive earnings recovery in FY24F; earnings growth to accelerate from FY25F on lower interest rates.

Long-term growth potential

Sound asset quality and strong presence in China support long-term growth.

Negative Factors

Airline sector downturn

Downturn in the airline sector, which could lead to lease restructuring, lessee defaults and asset impairments, negatively impacting CALC’s profitability.

Profitability challenges

High gearing will continue to weigh on profitability and could lead to equity dilution.

China Aircraft Leasing Group Holdings Business Overview & Revenue Model

Company Description

China Aircraft Leasing Group Holdings Limited, an investment holding company, provides aircraft leasing services to airline companies in Mainland China and internationally. It is involved in the aircraft leasing, and purchase and leaseback; portfolio trading and asset management; fleet upgrade; aircraft disassembly; and component sales activities, as well as in the aircraft maintenance, repair, and overhaul activities. The company also offers financing and management services. As of December 31, 2021, it had a fleet of 127 owned and 25 managed aircraft. The company was formerly known as China Aircraft Leasing Company Limited and changed its name to China Aircraft Leasing Group Holdings Limited in September 2013. China Aircraft Leasing Group Holdings Limited was founded in 2006 and is headquartered in Admiralty, Hong Kong.

How the Company Makes Money

China Aircraft Leasing Group Holdings makes money primarily through aircraft leasing, which involves purchasing aircraft and leasing them to airlines under long-term operating lease agreements. The company generates revenue from lease rentals paid by airlines, which are typically structured as fixed monthly payments over the lease term. Additionally, CALC earns income from aircraft trading, where it sells aircraft from its fleet to other lessors or airlines. The company also engages in aircraft disassembly and part-out, generating revenue from selling aircraft parts. Key partnerships with aircraft manufacturers and financial institutions enhance CALC's access to new aircraft and financing, supporting its business model and revenue streams.

China Aircraft Leasing Group Holdings Financial Statement Overview

Summary

The company shows revenue growth but faces challenges with profitability and high leverage. The income statement reveals pressure on margins, while the balance sheet highlights significant debt levels. Cash flow analysis shows effective operational cash generation but persistent negative free cash flow due to substantial capital expenditure.

Income Statement

The company shows a moderate growth trajectory with increasing total revenue from 2019 to 2024. However, the gross profit margin has decreased significantly over time, indicating pressure on profitability. The net profit margin is low but improved in 2024 compared to previous years, which is a positive sign. EBIT margin has deteriorated, but EBITDA margin remains strong, highlighting effective cost management excluding depreciation and amortization.

Balance Sheet

The company has a high debt-to-equity ratio, reflecting significant leverage which poses a risk in volatile markets. Return on equity has been inconsistent, showing a slight improvement in 2024. The equity ratio is low, indicating limited equity cushion against liabilities. Overall, the balance sheet indicates high leverage but some improvement in equity returns.

Cash Flow

Free cash flow is negative due to high capital expenditures, although there's a trend towards less negative free cash flow over time. Operating cash flow is robust compared to net income, suggesting effective cash generation from operations. However, the free cash flow to net income ratio remains concerning due to persistent negative free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.56B	4.32B	3.54B	2.50B	2.49B
Gross Profit	165.25M	460.40M	431.66M	469.24M	261.80M
EBITDA	1.77B	2.11B	3.49B	2.87B	2.83B
Net Income	257.55M	28.26M	73.60M	525.78M	334.14M
Balance Sheet
Total Assets	58.24B	59.82B	55.33B	50.03B	46.39B
Cash, Cash Equivalents and Short-Term Investments	3.78B	5.30B	4.67B	5.01B	5.29B
Total Debt	48.58B	50.51B	46.75B	41.99B	38.75B
Total Liabilities	52.91B	54.68B	50.69B	45.49B	42.53B
Stockholders Equity	5.33B	4.33B	4.67B	4.57B	3.89B
Cash Flow
Free Cash Flow	-6.26B	-7.37B	-9.30B	-5.33B	-7.83B
Operating Cash Flow	3.03B	3.69B	1.64B	660.64M	-502.48M
Investing Cash Flow	-394.58M	-4.18B	-6.65B	-3.49B	-1.53B
Financing Cash Flow	-4.11B	2.11B	3.84B	2.68B	2.54B

China Aircraft Leasing Group Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1848, the sentiment is Neutral. The current price of 4.76 is below the 20-day moving average (MA) of 4.92, above the 50-day MA of 4.53, and above the 200-day MA of 3.70, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 47.04 is Neutral, neither overbought nor oversold. The STOCH value of 29.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1848.

China Aircraft Leasing Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.84B	16.09	8.89%	1.97%	2.67%	-15.04%
1848	63 Neutral	HK$3.56B	13.76	6.02%	3.78%	3.58%	810.26%
BCVVF	―	$6.21B	7.75	12.82%	7.29%	―	―
3LL	―	€1.35B	5.83	13.91%	―	―	―

China Aircraft Leasing Group Holdings Corporate Events

China Aircraft Leasing Group Announces Sale of Eight Lease-Attached Aircraft

China Aircraft Leasing Group Holdings Limited has announced the sale of eight lease-attached aircraft to an independent third party, as part of its strategy to enhance its credit profile and pursue sustainable growth. This transaction, involving six aircraft owned and two managed by the Group, is expected to be completed by the end of October 2025. The sale is a routine part of the company’s operations, aimed at optimizing its fleet portfolio and demonstrating its asset management capabilities, which could lead to further business opportunities.

The most recent analyst rating on (HK:1848) stock is a Hold with a HK$3.40 price target. To see the full list of analyst forecasts on China Aircraft Leasing Group Holdings stock, see the HK:1848 Stock Forecast page.

China Aircraft Leasing Updates Remuneration Committee Terms

China Aircraft Leasing Group Holdings Limited has updated the terms of reference for its Remuneration Committee, which is responsible for setting the remuneration policy for the board of directors. The committee, established in 2013, requires a majority of its members to be independent non-executive directors, ensuring an unbiased approach to remuneration decisions. This update aims to enhance governance and align the committee’s operations with best practices, potentially impacting the company’s attractiveness to investors and stakeholders.

The most recent analyst rating on (HK:1848) stock is a Hold with a HK$3.40 price target. To see the full list of analyst forecasts on China Aircraft Leasing Group Holdings stock, see the HK:1848 Stock Forecast page.

China Aircraft Leasing Updates Nomination Committee Terms

China Aircraft Leasing Group Holdings Limited has updated the terms of reference for its Nomination Committee, which is responsible for board member appointments. The committee’s structure emphasizes diversity and independence, with a majority of independent non-executive directors and at least one member of a different gender, reflecting the company’s commitment to inclusive governance.

The most recent analyst rating on (HK:1848) stock is a Hold with a HK$3.40 price target. To see the full list of analyst forecasts on China Aircraft Leasing Group Holdings stock, see the HK:1848 Stock Forecast page.

China Aircraft Leasing Updates Audit Committee Terms

China Aircraft Leasing Group Holdings Limited has updated the terms of reference for its Audit Committee, which is a part of the Board of Directors. The committee, established in 2013, is composed of non-executive directors, with a majority being independent and possessing financial expertise. This update reflects the company’s commitment to maintaining robust governance and compliance with the Hong Kong Stock Exchange’s listing rules, potentially strengthening its market position and reassuring stakeholders of its governance standards.

The most recent analyst rating on (HK:1848) stock is a Hold with a HK$3.40 price target. To see the full list of analyst forecasts on China Aircraft Leasing Group Holdings stock, see the HK:1848 Stock Forecast page.

China Aircraft Leasing Group Updates Final Dividend Details

China Aircraft Leasing Group Holdings Limited announced an update regarding its final dividend for the year ending December 31, 2024. The company has set the cash dividend at HKD 0.18 per share, with an option for shareholders to convert this into scrip shares at a price of HKD 3.769 per share. The announcement includes details about the election closing date and the despatch date for share certificates, reflecting the company’s commitment to providing flexible dividend options to its stakeholders.

The most recent analyst rating on (HK:1848) stock is a Hold with a HK$3.40 price target. To see the full list of analyst forecasts on China Aircraft Leasing Group Holdings stock, see the HK:1848 Stock Forecast page.

China Aircraft Leasing Group Approves AGM Resolutions and Announces Board Changes

China Aircraft Leasing Group Holdings Limited announced that all proposed resolutions at its Annual General Meeting held on May 27, 2025, were passed by shareholders. The resolutions included the approval of audited financial statements, the declaration of a final dividend, the re-election of directors, and the re-appointment of Deloitte Touche Tohmatsu as the auditor. Additionally, Dr. Tse Hiu Tung, Sheldon retired as an Independent Non-executive Director, impacting the company’s board composition and committee memberships.

The most recent analyst rating on (HK:1848) stock is a Hold with a HK$3.40 price target. To see the full list of analyst forecasts on China Aircraft Leasing Group Holdings stock, see the HK:1848 Stock Forecast page.

China Aircraft Leasing Announces Board Committee Changes

China Aircraft Leasing Group Holdings Limited announced changes in its board committees effective from May 27, 2025. Dr. TSE Hiu Tung, Sheldon retired as an Independent Non-executive Director and chairman of the Remuneration Committee, while Dr. HONG Wen has been re-designated as the new chairman of the Remuneration Committee. These changes reflect a strategic shift in the company’s governance structure, potentially impacting its operational focus and stakeholder engagement.

The most recent analyst rating on (HK:1848) stock is a Hold with a HK$3.40 price target. To see the full list of analyst forecasts on China Aircraft Leasing Group Holdings stock, see the HK:1848 Stock Forecast page.