BOC Aviation (2588) AI Stock Analysis

• Market Cap: $52.26B
• Dividend Yield: 5.57%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.32
• Revenue Growth: 2.02%
• EPS Growth: 20.55%
• Country: HK
• Employees: 204
• Sector: Industrials
• Sector Strength: 90
• Industry: Rental & Leasing Services
• EPS (TTM): N/A
• Shares Outstanding: 694,010,300
• 10 Day Avg. Volume: 1,393,668
• 30 Day Avg. Volume: 1,032,871
• PEG Ratio: 0.27
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.55
• Enterprise Value/Market Cap: 0.44
• Enterprise Value/Revenue: 2.75
• Enterprise Value/Gross Profit: 38.80
• Enterprise Value/Ebitda: 4.48
• 1Y Price Target: $73.00
• Price Target Upside: -0.88% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: HK$82.00 ▲(11.34%Upside)

BOC Aviation demonstrates strong financial and technical performance, supported by attractive valuation metrics. The company's robust cash flow management and revenue growth contribute positively, while technical indicators suggest strong market momentum. However, investors should remain cautious of overbought technical signals.

Positive Factors

Cost of Funding

BOC Aviation's key strength lies in its lower cost of funding, which is currently 30-50bps below its industry peers.

Orderbook and Pipeline

BOC Aviation has a robust orderbook and pipeline of purchase and leaseback transactions, strengthening lease rates and more lucrative aircraft sales.

Negative Factors

Earnings Impact

BOC Aviation's earnings will be negatively impacted if its cost of funding outpaces its lease rate factor.

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 shown strong financial performance with steady revenue growth and improved profitability margins. The company's cash flow has turned positive, indicating better cash management despite high leverage. A focus on operational efficiency and debt management is crucial for sustaining this 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: Positive
• Last Price: 73.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 73.65 is above the 20-day moving average (MA) of 68.64, above the 50-day MA of 64.52, and above the 200-day MA of 60.01, indicating a bullish trend. The MACD of 3.08 indicates Negative momentum. The RSI at 80.58 is Negative, neither overbought nor oversold. The STOCH value of 91.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2588.

BOC Aviation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2588	80 Outperform	$52.26B	7.21	15.25%	5.57%	2.02%	20.55%
Sector *	71 Outperform	¥254.15B	13.65	8.48%	3.02%	6.34%	13.16%
1848	67 Neutral	HK$3.19B	12.37	6.02%	8.41%	3.58%	810.26%
3LL	―	€1.55B	5.71	15.41%	9.12%	―	―

BOC Aviation Corporate Events

BOC Aviation Reports Strong Q2 2025 Operational Performance

BOC Aviation Limited reported its operational data for the second quarter of 2025, highlighting a total portfolio of 834 aircraft and engines. The company executed 75 transactions, including commitments to purchase 18 aircraft and one engine, delivery of 13 aircraft and one engine, and sales of 14 owned aircraft. Additionally, BOC Aviation closed a significant five-year term loan of US$1.5 billion with 21 banks globally, reflecting its robust financial strategy and market positioning.

The most recent analyst rating on (HK:2588) stock is a Buy with a HK$84.00 price target. To see the full list of analyst forecasts on BOC Aviation stock, see the HK:2588 Stock Forecast page.

BOC Aviation Announces Exchange Rate for Final Dividend Payment

BOC Aviation Limited has announced the exchange rate for the payment of its final dividend for the financial year ending 31 December 2024. The dividend, declared at USD 0.267 per share, will be paid in Hong Kong dollars at an exchange rate of USD 1 to HKD 7.8475, resulting in a payment of HKD 2.0953 per share. The payment date is set for 20 June 2025, following the record date of 6 June 2025. This announcement provides clarity on the financial returns for shareholders and reflects the company’s commitment to delivering value.

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 Final Dividend Exchange Rate

BOC Aviation Limited announced the exchange rate for the payment of its final dividend for the year ended 31 December 2024. The dividend, initially declared in US dollars, will be paid in Hong Kong dollars at a conversion rate of 1 USD to 7.8475 HKD, resulting in a dividend of HK$2.0953 per share. This announcement reflects the company’s commitment to shareholder returns and may impact its financial operations and investor 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 Expands Fleet with Airbus A320NEO Acquisition

BOC Aviation Limited announced a significant transaction involving the purchase of nine Airbus A320NEO aircraft from Airbus S.A.S., with long-term leases to Aerovías del Continente Americano S.A. Avianca. This transaction, scheduled for delivery in 2027, enhances BOC Aviation’s portfolio and strengthens its position in the aircraft leasing industry, providing strategic growth opportunities and reinforcing its role as a Qualified Aircraft Lessor.

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’s AGM Resolutions Passed with Strong Shareholder Support

BOC Aviation Limited held its Annual General Meeting on May 29, 2025, where all proposed resolutions were passed by shareholders. Key resolutions included the adoption of financial statements for 2024, declaration of a final dividend, re-election of directors, and granting mandates for share repurchase and issuance. The approval of these resolutions reflects shareholder confidence in the company’s governance and strategic direction.

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 Secures Shareholder Approval for Loan Agreement Renewals

BOC Aviation Limited held an Extraordinary General Meeting on May 29, 2025, where shareholders approved several resolutions related to the renewal of loan framework agreements with BOC and BOCHK for the next two years. The resolutions, which received overwhelming support, are expected to facilitate continued financial transactions under these agreements, potentially impacting the company’s financial operations and stakeholder relations positively.

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 Expands Fleet with New Airbus Aircraft Acquisition and Lease Agreement

BOC Aviation Limited has announced a significant transaction involving the purchase of six Airbus A320NEO and three Airbus A321NEO aircraft from Airbus S.A.S., with long-term leases arranged with Gulf Air B.S.C. (C). This move, scheduled for delivery between 2025 and 2027, reinforces BOC Aviation’s position as a Qualified Aircraft Lessor and highlights its ongoing commitment to expanding its fleet and enhancing its market presence in the aircraft 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 Grants RSUs to Key Personnel Under Long-Term Incentive Plan

BOC Aviation Limited announced the grant of restricted share units (RSUs) under its long-term incentive plan, covering the years 2022 to 2025. A total of 2,465,872 shares were allocated to key personnel, including the Chairman, Executive Director, subsidiary directors, and other employees. This move represents approximately 0.36% of the company’s issued share capital, with a market value of HK$152.4 million. The grants are part of the remuneration packages for senior management and are exempt from certain reporting and approval requirements, highlighting the company’s commitment to rewarding its leadership and aligning their interests with shareholders.

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 Extraordinary General Meeting for Loan Agreement Renewals

BOC Aviation Limited has announced an extraordinary general meeting scheduled for May 29, 2025, to consider the renewal of loan framework agreements with BOC and BOCHK for the next two years. These renewals, which include proposed annual caps for transactions, are significant for the company’s financial operations and strategic positioning in the aviation leasing market.

BOC Aviation Announces 2025 Annual General Meeting and Share Buy-Back Proposal

BOC Aviation Limited has announced its annual general meeting scheduled for May 29, 2025, in Hong Kong. The meeting will address several key business items, including the adoption of financial statements, declaration of a final dividend, re-election of directors, and the appointment of auditors. Additionally, the company seeks shareholder approval for a share buy-back program, allowing the purchase of up to 10% of its shares, which could impact its market positioning and shareholder value.

BOC Aviation Renews Key Financial Agreements with BOC

BOC Aviation Limited has announced the renewal of its Continuing Connected Transactions under the BOC Loan Framework Agreement and the BOCHK Loan Framework Agreement. These agreements, which govern secured loans and banking services with BOC and its subsidiary BOCHK, will automatically renew for two years ending December 2027, pending approval from Independent Shareholders. This renewal underscores the company’s ongoing financial strategy and its reliance on connected transactions with BOC, highlighting the importance of shareholder approval in maintaining compliance with Hong Kong’s Listing Rules.