CITIC Lyon believes that the Bank of China Aviation Leasing (02588) dividend is still a major surprise for the market.
The Zhitong Finance App learned that CITIC Lyon released a research report stating that it raised the target price of Bank of China Airlines Leasing (02588) by 1%, from HK$68 to HK$69, reaffirming the “buy” rating. The reason is that demand for aircraft continues to be strong, and the US is likely to cut interest rates in 2024.
According to the report, BOC Aviation Leasing's revenue in 2023 was 2.5 billion US dollars, an increase of 7% over the previous year, exceeding market expectations. The net rental return increased by 0.1 percentage points due to higher rental costs, but was offset by higher financing costs. The bank believes that the company's dividend is still a major surprise for the market. Considering the gradual normalization of borrowing costs, it has lowered its financing cost forecast.