BOC Aviation: H126 preview: Steady growth continues

研报英文原文证据摘录

BOC Aviation: H126 preview: Steady growth continues

Global Research

9 July 2026ab

BOC Aviation Equities

ChinaH126 preview: Steady growth continues

Transportation Services

12-month rating Buy

Growth unlikely to be derailed by Middle East conflict

While higher fuel prices arising from the Middle East conflict would inevitably weigh on 12m price target HK$104.20

airlines' H1 profitability, the tensions among Iran, the US and Israel have notably eased in Prior : HK$106.90

spite of sporadic episodes of renewed frictions. As fuel prices retreated, we expect

Price (08 Jul 2026) HK$80.45

airlines' profitability to rapidly restore, limiting downsides on leasing demand and credit

risks on existing lessee customers. Furthermore, we expect growing demand for fuel RIC: 2588.HK BBG: 2588 HK

efficient aircraft as the fuel shock during the conflict exposed the vulnerability of

Trading data and key metrics

operating older generation aircraft, favouring BOCA with a large orderbook of fuel

52-wk range HK$91.95-68.05

efficient aircraft. We also expect continued expansion of asset base with higher capex in

2026E thanks to improved delivery rate of aircraft where VA consensus is assuming Market cap. HK$55.8b/US$7.12b

aircraft delivery rate of Boeing and Airbus combined to be up 10% YoY in 2026F. The Shares o/s 694m (ORD)

continued supply deficit of aircraft has also raised the second hand value of aircraft, Free float 30%

enabling the company to recycle capital at an above-trend exit margin. The stock is Avg. daily volume ('000) 866

trading at 0.9x forward P/B, 0.2SD below its average. We remain positive on BOCA. Avg. daily value (m) HK$68

Common s/h equity (12/26E) US$7.31b

Expect intact profit growth in H126E P/BV (12/26E) 1.0x

BOCA will likely report its H126E result in Aug-26.