The Zhitong Finance App learned that Citibank released a research report saying that Bank of China Airlines Leasing (02588) management pointed out on 2026 Investor Day that the goal of total assets of 40 billion US dollars in 2030 is to maintain the top 5 scale of the industry rather than the upper limit of growth. The bank believes that its financing advantage is still there, maintaining a “buy” rating and target price of HK$98.6.
According to the bank, according to the management's goals, it is equivalent to a compound year-on-year increase of about 8% in total assets. Bargaining power with OEMs, maintaining an “A-” credit rating and associated financing advantages, executing large-scale transactions, and obtaining proprietary transaction data remain important for scale. In support of this growth target, management indicated that the annual value of aircraft deliveries is expected to increase from about US$100 billion to nearly US$180 billion by 2030, which is equivalent to a compound increase of about 12% over the previous year.
According to the bank, management believes that the large order book is still an important advantage. By the end of the first half of this year, the order size was equivalent to 69% of the active fleet, and a capital of 18 billion US dollars has been promised; it is also expected that aircraft sales activities will accelerate in the second half of this year, and 6 aircraft have already been sold in the first half of this year.
The financing advantage is still there. Interest spreads on bonds have narrowed by more than 40 basis points for lessors with the second-best rating, up to about 100 basis points compared to rated global peers; currently, about 90% of assets and liabilities are matched with fixed interest rates, so there is room to increase floating rate financing. Liquidity is currently stable at USD 7.3 billion, of which USD 3.5 billion is Bank of China Group revolving credit, which was extended until February 2031.
The shortage of aircraft is still structural, especially for wide-body aircraft. The company will be able to deliver the earliest aircraft until the second half of 2028.