SEHK:2588

Stock Analysis Report

Executive Summary

BOC Aviation Limited, together with its subsidiaries, operates as an aircraft operating leasing company worldwide.

Snowflake

Fundamentals

Acceptable track record second-rate dividend payer.


Similar Companies

Share Price & News

How has BOC Aviation's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.5%

2588

-20.1%

HK Trade Distributors

3.1%

HK Market


1 Year Return

34.9%

2588

-27.6%

HK Trade Distributors

0.5%

HK Market

Return vs Industry: 2588 exceeded the Hong Kong Trade Distributors industry which returned -27.6% over the past year.

Return vs Market: 2588 exceeded the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

2588IndustryMarket
7 Day5.5%-20.1%3.1%
30 Day-0.2%-32.3%-1.8%
90 Day12.2%-23.2%-4.8%
1 Year40.0%34.9%-26.2%-27.6%4.1%0.5%
3 Year101.2%77.1%-11.9%-19.9%15.8%4.2%
5 Yearn/a-43.5%-54.7%18.9%-0.9%

Price Volatility Vs. Market

How volatile is BOC Aviation's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BOC Aviation undervalued compared to its fair value and its price relative to the market?

10.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 2588 (HK$75.2) is trading above our estimate of fair value (HK$35.03)

Significantly Undervalued: 2588 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2588 is poor value based on its PE Ratio (10.3x) compared to the Trade Distributors industry average (9.4x).

PE vs Market: 2588 is good value based on its PE Ratio (10.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 2588 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 2588 is overvalued based on its PB Ratio (1.6x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

How is BOC Aviation forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2588's forecast earnings growth (10.2% per year) is above the savings rate (2%).

Earnings vs Market: 2588's earnings (10.2% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 2588's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2588's revenue (11.5% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 2588's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 2588's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has BOC Aviation performed over the past 5 years?

18.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2588's earnings have grown by 18.8% per year over the past 5 years.

Accelerating Growth: 2588's earnings growth over the past year (0.2%) is below its 5-year average (18.8% per year).

Earnings vs Industry: 2588 earnings growth over the past year (0.2%) underperformed the Trade Distributors industry 1%.


Return on Equity

High ROE: 2588's Return on Equity (15%) is considered low.


Return on Assets

ROA vs Industry: 2588 has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 2588 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is BOC Aviation's financial position?


Financial Position Analysis

Short Term Liabilities: 2588's short term assets ($375.4M) do not cover its short term liabilities ($2.1B)

Long Term Liabilities: 2588's short term assets (375.4M) do not cover its long term liabilities (12.7B)


Debt to Equity History and Analysis

Debt Level: 2588's debt to equity ratio (306%) is considered high

Reducing Debt: 2588's debt to equity ratio has reduced from 398.7% to 306% over the past 5 years.

Debt Coverage: 2588's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: 2588's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: 2588 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2588's debt is not covered by short term assets (assets are 0x debt).


Next Steps

Dividend

What is BOC Aviation's current dividend yield, its reliability and sustainability?

3.37%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%2.3%markettop25%6.3%industryaverage3.9%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2588's dividend (3.37%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 2588's dividend (3.37%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: Whilst dividend payments have been stable, 2588 has been paying a dividend for less than 10 years.

Growing Dividend: 2588's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.8%), 2588's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2588's dividends in 3 years are forecast to be well covered by earnings (35.5% payout ratio).


Next Steps

Management

What is the CEO of BOC Aviation's salary, the management and board of directors tenure and is there insider trading?

15.5yrs

Average management tenure


CEO

Robert Martin (54yo)

15.8yrs

Tenure

US$7,479,000

Compensation

Mr. Robert James Martin has been the Chief Executive Officer and Managing Director of BOC Aviation Pte. Ltd since 2004 and July 5, 1998 respectively. Mr. Martin has been an Executive Director of BOC Aviati ...


CEO Compensation Analysis

Compensation vs. Market: Robert's total compensation ($USD7.48M) is about average for companies of similar size in the Hong Kong market ($USD607.90K).

Compensation vs Earnings: Robert's compensation has increased by more than 20% in the past year.


Management Age and Tenure

15.5yrs

Average Tenure

54yo

Average Age

Experienced Management: 2588's management team is seasoned and experienced (15.5 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 2588's board of directors are considered experienced (3.4 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.


Ownership Breakdown


Management Team

  • Ng Felicia (53yo)

    Chief Accounting Officer

    • Tenure: 0yrs
  • Dave Walton (58yo)

    Chief Operating Officer

    • Tenure: 4.9yrs
  • Steven Townend (50yo)

    Chief Commercial Officer of Europe-Americas & Africa

    • Tenure: 15.3yrs
  • Thim Phang (62yo)

    Deputy MD & CFO

    • Tenure: 23.8yrs
  • David Farrell

    Head of Risk Management

    • Tenure: 0yrs
  • John Bloemen

    Head of Airline Leasing & Sales - Asia Pacific Middle East

    • Tenure: 0yrs
  • Robert Martin (54yo)

    MD, CEO & Executive Director

    • Tenure: 15.8yrs
    • Compensation: US$7.48m
  • Jonathan Mahony (50yo)

    General Counsel

    • Tenure: 17.2yrs
  • Jian Wang (59yo)

    Vice Chairman & Deputy MD

    • Tenure: 2.3yrs
    • Compensation: US$921.00k
  • Timothy Ross

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Tony Tyler (63yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: US$180.00k
  • Shula Fu (63yo)

    Independent Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: US$77.00k
  • Robert Martin (54yo)

    MD, CEO & Executive Director

    • Tenure: 15.8yrs
    • Compensation: US$7.48m
  • Jian Wang (59yo)

    Vice Chairman & Deputy MD

    • Tenure: 2.3yrs
    • Compensation: US$921.00k
  • Lin Zhu (45yo)

    Non-Executive Director

    • Tenure: 5.8yrs
  • Mang Li (51yo)

    Non-Executive Director

    • Tenure: 3.8yrs
  • Deming Dai (57yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: US$77.00k
  • Chenggang Liu (46yo)

    Non-Executive Director

    • Tenure: 3.1yrs
  • Bernard Yeung (66yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: US$45.00k
  • Yu Sun (46yo)

    Non-Executive Chairman

    • Tenure: 0.7yrs

Company Information

BOC Aviation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BOC Aviation Limited
  • Ticker: 2588
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$51.704b
  • Shares outstanding: 694.01m
  • Website: https://www.bocaviation.com

Number of Employees


Location

  • BOC Aviation Limited
  • No. 18-01, 8 Shenton Way
  • Singapore
  • 68811
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2588SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2016
8BODB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2016
2588SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2016
2588SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2016
BCVV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2016

Biography

BOC Aviation Limited, together with its subsidiaries, operates as an aircraft operating leasing company worldwide. The company offers a range of services to airlines and aircraft owners, including direct o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:56
End of Day Share Price2019/10/17 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.