SEHK:1848

Stock Analysis Report

China Aircraft Leasing Group Holdings

Executive Summary

China Aircraft Leasing Group Holdings Limited, an investment holding company, provides aircraft leasing services to airline companies primarily in Mainland China, and other countries or regions in Europe and Asia.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.

Share Price & News

How has China Aircraft Leasing Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1848 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

1848

7.1%

HK Trade Distributors

-0.7%

HK Market


1 Year Return

-1.7%

1848

29.0%

HK Trade Distributors

-2.3%

HK Market

Return vs Industry: 1848 underperformed the Hong Kong Trade Distributors industry which returned 29% over the past year.

Return vs Market: 1848 matched the Hong Kong Market which returned -2.3% over the past year.


Shareholder returns

1848IndustryMarket
7 Day-0.6%7.1%-0.7%
30 Day-1.0%18.9%0.2%
90 Day-1.8%23.3%2.8%
1 Year6.3%-1.7%33.1%29.0%1.2%-2.3%
3 Year9.4%-12.0%15.1%6.1%20.4%8.4%
5 Year-12.9%-33.6%-17.7%-33.0%16.9%-2.6%

Price Volatility Vs. Market

How volatile is China Aircraft Leasing Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Aircraft Leasing Group Holdings undervalued compared to its fair value and its price relative to the market?

6.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1848 (HK$8) is trading above our estimate of fair value (HK$7.19)

Significantly Below Fair Value: 1848 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1848 is good value based on its PE Ratio (6.7x) compared to the Trade Distributors industry average (9.5x).

PE vs Market: 1848 is good value based on its PE Ratio (6.7x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1848 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 1848 is overvalued based on its PB Ratio (1.5x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

How is China Aircraft Leasing Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1848's forecast earnings growth (6.1% per year) is above the savings rate (2%).

Earnings vs Market: 1848's earnings (6.1% per year) are forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Earnings: 1848's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1848's revenue (16.3% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1848's revenue (16.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1848's Return on Equity is forecast to be low in 3 years time (19.7%).


Next Steps

Past Performance

How has China Aircraft Leasing Group Holdings performed over the past 5 years?

23.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1848 has a high level of non-cash earnings.

Growing Profit Margin: 1848's current net profit margins (48.1%) are higher than last year (48.1%).


Past Earnings Growth Analysis

Earnings Trend: 1848's earnings have grown significantly by 23.8% per year over the past 5 years.

Accelerating Growth: 1848's earnings growth over the past year (2.5%) is below its 5-year average (23.8% per year).

Earnings vs Industry: 1848 earnings growth over the past year (2.5%) exceeded the Trade Distributors industry 1%.


Return on Equity

High ROE: Whilst 1848's Return on Equity (22.8%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Aircraft Leasing Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1848's short term assets (HK$23.9B) exceeds its short term liabilities (HK$8.5B)

Long Term Liabilities: 1848's short term assets (HK$23.9B) do not cover its long term liabilities (31.2B)


Debt to Equity History and Analysis

Debt Level: 1848's debt to equity ratio (1002.8%) is considered high.

Reducing Debt: 1848's debt to equity ratio has reduced from 1411.8% to 1002.8% over the past 5 years.

Debt Coverage: 1848's debt is not well covered by operating cash flow (9.5%).

Interest Coverage: Insufficient data to determine if 1848's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 1848 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1848's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is China Aircraft Leasing Group Holdings's current dividend yield, its reliability and sustainability?

8.25%

Current Dividend Yield


Dividend Yield vs Market

company8.3%marketbottom25%2.2%markettop25%6.4%industryaverage3.7%forecastin3Years8.7%

Current dividend yield vs market & industry

Notable Dividend: 1848's dividend (8.25%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 1848's dividend (8.25%) is in the top 25% of dividend payers in the Hong Kong market (6.39%)


Stability and Growth of Payments

Stable Dividend: 1848 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1848's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.8%), 1848's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1848's dividends in 3 years are forecast to be covered by earnings (55.4% payout ratio).


Next Steps

Management

What is the CEO of China Aircraft Leasing Group Holdings's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Mike Poon (46yo)

2.8yrs

Tenure

HK$19,620,000

Compensation

Dr. Ho Man Poon, also known as Mike, CFA has been the Chief Executive Officer of China Aircraft Leasing Group Holdings Limited since January 19, 2017. Dr. Poon serves as the Chief Investment Officer at Pac ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD2.51M) is above average for companies of similar size in the Hong Kong market ($USD407.68K).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.8yrs

Average Tenure

48yo

Average Age

Experienced Management: 1848's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

62yo

Average Age

Experienced Board: 1848's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$1,042,62619 Jun 19
China Everbright Limited
EntityCompany
Shares130,000
Max PriceHK$8.02

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Barry Mok (60yo)

    Deputy CEO & CFO

    • Tenure: 4.4yrs
  • Mike Poon (46yo)

    CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$19.62m
  • Pitney Tang (49yo)

    Chief Operating Officer

    • Tenure: 3.9yrs
  • Jens Dunker (53yo)

    Senior Vice President of Portfolio Trading

    • Tenure: 0yrs
  • Winnie Liu (37yo)

    Deputy CEO

    • Tenure: 6.3yrs
    • Compensation: HK$17.68m
  • Christopher Dennis-Meyer

    Regional Head of Sales & Marketing – EMEA

    • Tenure: 2.8yrs
  • Matt Corley

    Regional Head of Americas

    • Tenure: 2.8yrs
  • Wei Zhao (48yo)

    Chairman of the Board

    • Tenure: 0.5yrs
  • Niel Liebenberg

    General Counsel

    • Tenure: 2.3yrs
  • Hatty Cheung (44yo)

    Chief Risk Officer

    • Tenure: 1.8yrs

Board Members

  • Albert Cheok (69yo)

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: HK$489.00k
  • Robert Nien (71yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: HK$440.00k
  • Philip Fan (70yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: HK$417.00k
  • Edward Chow (67yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: HK$499.00k
  • Mike Poon (46yo)

    CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$19.62m
  • Richard Tang (57yo)

    Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$235.00k
  • Winnie Liu (37yo)

    Deputy CEO

    • Tenure: 6.3yrs
    • Compensation: HK$17.68m
  • Wei Zhao (48yo)

    Chairman of the Board

    • Tenure: 0.5yrs

Company Information

China Aircraft Leasing Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Aircraft Leasing Group Holdings Limited
  • Ticker: 1848
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$5.411b
  • Shares outstanding: 677.27m
  • Website: https://www.calc.com.hk

Number of Employees


Location

  • China Aircraft Leasing Group Holdings Limited
  • Far East Finance Centre
  • 28th Floor
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1848SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2014
1848SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2014
1848SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2014

Biography

China Aircraft Leasing Group Holdings Limited, an investment holding company, provides aircraft leasing services to airline companies primarily in Mainland China, and other countries or regions in Europe a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 12:58
End of Day Share Price2019/11/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.