BOC Aviation Limited (HK:2588)
:2588
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BOC Aviation
(2588)
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Rating:64Neutral
Price Target:
HK$82.00
▲(4.46% Upside)
Action:DowngradedDate:03/21/26
The score is driven primarily by very strong valuation (low P/E and solid yield). This is tempered by mid-tier financial performance due to high leverage and volatile free cash flow, and by weak technical momentum (below key moving averages with a negative MACD).
Positive Factors
Durable lease-based business model
BOC Aviation's core operating-leasing model produces contracted, multi-year rental income tied to essential aircraft assets. This asset-backed, recurring revenue profile supports predictable cash flows and long-term client relationships, a structural advantage versus transactional financiers.
Negative Factors
High leverage
Debt materially exceeds equity, a structural feature of aircraft lessors but one that increases sensitivity to rising funding costs, refinancing risk and asset value swings. Elevated leverage constrains flexibility and raises long-run vulnerability to rate and credit cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable lease-based business model
BOC Aviation's core operating-leasing model produces contracted, multi-year rental income tied to essential aircraft assets. This asset-backed, recurring revenue profile supports predictable cash flows and long-term client relationships, a structural advantage versus transactional financiers.
Read all positive factors
BOC Aviation (2588) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$54.48B
Dividend Yield4.39%
Average Volume (3M)784.41K
Price to Earnings (P/E)8.2
Beta (1Y)0.28
Revenue Growth1.58%
EPS Growth-16.66%
CountryHK
Employees204
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)5.01
Shares Outstanding694,010,300
10 Day Avg. Volume752,393
30 Day Avg. Volume784,412
Financial Highlights & Ratios
PEG Ratio-0.58
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$93.96Price Target Upside19.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.21
Revenue Forecast (FY)HK$2.77B
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...
How the Company Makes Money
BOC Aviation makes money primarily by purchasing aircraft (often directly from manufacturers) and leasing them to airlines under operating leases. Its core revenue stream is lease rental income: airlines pay contracted monthly or periodic lease pa...
BOC Aviation Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
54
Neutral
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.41B | 2.20B | 2.07B | 1.92B | 2.04B |
| Gross Profit | 843.93M | 591.94M | 548.89M | 1.92B | 696.06M |
| EBITDA | 2.48B | 1.37B | 1.35B | 1.11B | 1.16B |
| Net Income | 788.41M | 923.59M | 763.90M | 20.06M | 561.32M |
Balance Sheet | |||||
| Total Assets | 26.33B | 25.05B | 24.17B | 22.07B | 23.88B |
| Cash, Cash Equivalents and Short-Term Investments | 399.74M | 671.33M | 391.82M | 391.91M | 487.61M |
| Total Debt | 17.16B | 16.59B | 16.53B | 15.14B | 16.72B |
| Total Liabilities | 19.49B | 18.69B | 18.42B | 16.87B | 18.61B |
| Stockholders Equity | 6.84B | 6.36B | 5.75B | 5.20B | 5.27B |
Cash Flow | |||||
| Free Cash Flow | -2.07B | 94.42M | -1.36B | 800.56M | -319.98M |
| Operating Cash Flow | 2.18B | 2.57B | 2.28B | 2.01B | 1.80B |
| Investing Cash Flow | -2.70B | -1.29B | -2.80B | 193.04M | -1.06B |
| Financing Cash Flow | 249.12M | -1.00B | 518.72M | -2.29B | -671.68M |
BOC Aviation Technical Analysis
Positive
78.50
Price Trends
82.17
Negative
78.02
Positive
73.74
Positive
Market Momentum
-1.12
Negative
46.90
Neutral
72.93
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 78.5 is above the 20-day moving average (MA) of 78.30, below the 50-day MA of 82.17, and above the 200-day MA of 73.74, indicating a neutral trend. The MACD of -1.12 indicates Negative momentum. The RSI at 46.90 is Neutral, neither overbought nor oversold. The STOCH value of 72.93 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
78.50
25.84
49.07%
HK:1848
China Aircraft Leasing Group Holdings
3.96
0.66
20.00%
BOC Aviation Corporate Events
BOC Aviation Updates Offering Circular for Global Medium Term Note Programme
Mar 24, 2026
BOC Aviation has updated the offering circular for its Global Medium Term Note Programme, making the new documentation available on the Singapore Exchange website as of 24 March 2026. The move underscores the company’s continued use of debt ...
BOC Aviation Declares Final Dividend of USD 0.3061 Per Share for 2025
Mar 19, 2026
BOC Aviation has announced a final ordinary cash dividend of USD 0.3061 per share for the financial year ended 31 December 2025, subject to shareholder approval on 2 June 2026. The dividend, to be paid in Hong Kong dollars with the exact amount an...
BOC Aviation Delivers Record 2025 Revenue and Strong Core Profit Growth
Mar 19, 2026
BOC Aviation reported record total revenues and other income of more than US$2.6 billion for 2025, with operating cash flow net of interest up 17% to a record US$2.2 billion, and total assets rising 5% to US$26.3 billion. Net profit after tax fell...
BOC Aviation Sets March 2026 Board Meeting to Approve 2025 Results
Mar 9, 2026
BOC Aviation has scheduled a board meeting for 19 March 2026 to review and approve its audited financial statements for the year ended 31 December 2025. The board will also consider recommending a final dividend and address other corporate matters...
BOC Aviation Updates Information on Global Medium Term Note Programme
Jan 21, 2026
BOC Aviation Limited has updated the information relating to notes issued under its Global Medium Term Note Programme, and made the revised details available to investors via the Company Announcements section of the Singapore Exchange website. The...
BOC Aviation Prices US$500 Million 2033 Notes Under Global Medium Term Programme
Jan 14, 2026
BOC Aviation Limited has issued US$500 million fixed rate notes due 2033 under its global medium term note programme, with the notes listed on Singapore Exchange Securities Trading Limited as of 13 January 2026. The transaction underscores the com...
BOC Aviation Lists US$500 Million 2033 Notes on Singapore Exchange
Jan 12, 2026
BOC Aviation Limited has issued US$500 million fixed-rate notes due 2033 under its global medium term note programme, further diversifying and extending the maturity of its funding profile in international debt markets. The notes will be listed an...
BOC Aviation Boosts Order Book and Keeps Fleet Fully Utilised in 2025
Jan 12, 2026
BOC Aviation reported a strong operational performance for 2025, executing one of its largest annual volumes of transactions and reinforcing its standing as a leading global aircraft lessor. The company expanded its order book with 160 new aircraf...
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.