Bohai Leasing: record profit, buyback, fleet deals reshape aircraft lessor
200M yuan buyback with bank loan support Bohai Leasing will buy back 200 million yuan of its own shares at up to 6.48 yuan each, funded partly by a 150 million yuan loan from China Everbright Bank. Buying back stock shrinks the number of shares and signals management thinks the stock is cheap, which tends to lift the price.
A concrete capital action that directly supports the share price and shows management confidence.
First-half profit jumps 258.73% on strong leasing First-half net profit attributable to parent hit 3.204 billion yuan, up 258.73% from a year earlier, on revenue of 23.663 billion yuan. Aircraft leasing revenue rose 6.62%, the fleet of 1,146 planes was about 100% utilized, and average lease rates rose. Strong earnings underpin the stock.
The core earnings result that shows the business is generating far more profit, the main fundamental driver.
Selling 33 aircraft assets for about 10.9 billion yuan Avolon sub-subsidiaries agreed to sell 33 leased aircraft to a non-related third party for a market price of about 1.609 billion US dollars (about 10.924 billion yuan). The company says this optimizes the fleet, keeps it young, and will boost current and future annual profits.
A large asset sale that management says will lift profits and improve fleet quality.
Avolon orders 250 Airbus and Boeing jets, order book tops industry Avolon signed deals for 250 aircraft (75 A320NEO, 35 A330NEO, 140 B737 MAX) plus options for 100 more Airbus jets, lifting its order book to 749 planes, first in the industry. The 140 Boeing jets alone are valued at up to 26.953 billion US dollars. This expands future leasing capacity and revenue.
A major expansion of the fleet pipeline that positions the company for long-term growth in aircraft leasing.