China Aircraft Leasing Group Holdings (1848) AI Stock Analysis

• Market Cap: HK$3.34B
• Dividend Yield: 6.71%
• Average Volume (3M): 280.10K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.85
• Revenue Growth: -7.56%
• EPS Growth: N/A
• Country: HK
• Employees: 184
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.19
• Shares Outstanding: 747,975,000
• 10 Day Avg. Volume: 239,172
• 30 Day Avg. Volume: 280,099
• PEG Ratio: 0.01
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.59
• P/FCF Ratio: -0.43
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: HK$4.50 ▲(0.67% Upside)

The overall stock score is primarily influenced by financial performance and valuation. The company shows growth potential but faces significant financial risks due to high leverage and pressure on profitability. The valuation is attractive with a reasonable P/E ratio and high dividend yield. Technical analysis indicates weak momentum, which slightly offsets the positive valuation.

Positive Factors

Operational Cash Generation

Strong operational cash generation indicates the company's ability to efficiently manage its core business activities, providing a stable cash base for future investments and debt servicing.

Strategic Partnerships

These partnerships enhance CALC's competitive position by ensuring a reliable supply of aircraft and fostering long-term relationships with key industry players, supporting sustained growth.

EBITDA Margin

A strong EBITDA margin demonstrates the company's ability to maintain profitability through efficient cost control, which is crucial for long-term financial health and competitiveness.

Negative Factors

High Leverage

High leverage increases financial risk, especially in volatile markets, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Free Cash Flow

Persistent negative free cash flow can strain financial resources, limiting the company's ability to fund new projects or reduce debt, impacting long-term financial stability.

Pressure on Profit Margins

Decreasing profit margins suggest challenges in maintaining pricing power or controlling costs, which could erode profitability and affect the company's competitive position over time.

China Aircraft Leasing Group Holdings Business Overview & Revenue Model

Company Description

China Aircraft Leasing Group Holdings Limited (CALC) is a leading aircraft leasing company based in Hong Kong that specializes in purchasing and leasing commercial aircraft to airlines across the globe. The company operates primarily in the aviation sector, providing a range of services including fleet management, aircraft financing, and asset management. CALC aims to support the growth of the aviation industry, particularly in China and Asia, by offering its clients flexible leasing solutions and comprehensive maintenance support.

How the Company Makes Money

China Aircraft Leasing Group generates revenue primarily through the leasing of aircraft to airlines. Its key revenue streams include operating leases, where it acquires aircraft and leases them to customers for a specified term, as well as finance leases. Additionally, CALC earns income from maintenance services and technical support provided to its clients, enhancing the value of its leasing agreements. The company also benefits from strategic partnerships with manufacturers and airlines, which help secure a steady pipeline of aircraft acquisitions and leases, thus contributing significantly to its earnings.

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. Overall, the company demonstrates growth potential with notable financial risks.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.04B	4.56B	4.32B	3.54B	2.50B	2.49B
Gross Profit	1.85B	165.25M	460.40M	431.66M	469.24M	261.80M
EBITDA	4.53B	1.77B	2.11B	3.49B	2.87B	2.83B
Net Income	266.32M	257.55M	28.26M	73.60M	525.78M	334.14M
Balance Sheet
Total Assets	58.61B	58.24B	59.82B	55.33B	50.03B	46.39B
Cash, Cash Equivalents and Short-Term Investments	4.95B	3.78B	5.30B	4.67B	5.01B	5.29B
Total Debt	48.84B	48.58B	51.36B	46.75B	41.99B	38.75B
Total Liabilities	52.79B	52.91B	54.68B	50.69B	45.49B	42.53B
Stockholders Equity	4.18B	5.33B	4.33B	4.67B	4.57B	3.89B
Cash Flow
Free Cash Flow	-8.36B	-6.26B	-7.37B	-9.30B	-5.33B	-7.83B
Operating Cash Flow	1.19B	3.03B	3.69B	1.64B	660.64M	-502.48M
Investing Cash Flow	4.75B	-394.58M	-3.97B	-6.53B	-3.34B	-1.38B
Financing Cash Flow	-5.99B	-4.11B	2.11B	2.01B	1.02B	904.08M

China Aircraft Leasing Group Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.47
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 4.47 is below the 20-day moving average (MA) of 4.56, below the 50-day MA of 4.56, and above the 200-day MA of 4.18, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.14 is Neutral, neither overbought nor oversold. The STOCH value of 28.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
3877	80 Outperform	HK$12.71B	6.73	13.91%	7.51%	0.17%	-12.66%
2588	73 Outperform	HK$50.66B	8.08	12.82%	4.44%	1.58%	-16.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1848	58 Neutral	HK$3.34B	12.50	6.30%	6.71%	-7.56%	―

China Aircraft Leasing Group Holdings Corporate Events

China Aircraft Leasing Reports Strong Q3 2025 Results for Subsidiary

China Aircraft Leasing Group Holdings Limited announced the unaudited financial results for its subsidiary, China Asset Leasing Company Limited, for the first nine months of 2025. The subsidiary reported total assets of approximately RMB41,978.64 million and a net profit of RMB588.42 million. The financial information, prepared under PRC accounting standards, highlights the subsidiary’s financial health but does not fully represent the group’s overall operations. Stakeholders are advised to exercise caution when interpreting these figures.