BOC Aviation Ltd Shs Unitary 144A/Reg S

02588: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$32.00	Pfl	Kwqlgps

BOC Aviation: Stronger Lease Rates and Decent Fleet Growth; Shares Attractive

Lorraine Tan

Jan 12, 2024

We expect BOC Aviation to reflect a stronger rebound in earnings on decent growth in its aircraft portfolio and higher lease rates. We lift our 2023 and 2024 core net profit estimates by 3% and 12%, respectively, but our 2025 forecast is little changed. Inclusive of an estimated writeback of around USD 200 million in 2023 for a recovery in payments owed for 11 aircraft stuck in Russia, our 2023 net profit is raised 38% to USD 831 million from USD 601 million.

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