CICC: BOC Aviation Leasing (02588) further enhances shareholder returns, lowers earnings estimates and reaffirms “outperforming the industry”

The Zhitong Finance App learned that CICC released a research report saying that considering the slow pace of interest rate cuts by the Federal Reserve, the bank lowered its profit forecast for BOC Aviation (02588) by 2.6% and 3.8% for 2026 and 2027, to 818 million and 900 million US dollars. The stock is currently trading at a market account ratio of 0.95 times this year and 0.88 times for the next two years, respectively. The bank maintains a “outperforming industry” rating and a target price of HK$94.2, which is equivalent to predicting market account ratios of 1.15 times and 1.07 times for the next two years, respectively.

CICC indicates that the BOC Aviation Leasing balance sheet has accelerated expansion to support profits. Revenue for the first half of the year rose 4% year on year to 1.3 billion US dollars, net profit increased 4% year over year to 357 million US dollars, and earnings per share rose 4% year on year to 51 US cents year on year, which is generally in line with the bank's expectations. The company declared an interim dividend of 17.99 US cents per share, and the dividend ratio increased 5 percentage points year over year to 35%. Shareholder returns have been further strengthened.