BCVVF - BOC Aviation: All Eyes On Aircraft Deliveries And Impairment Losses
- BOC Aviation's net profit after tax increased +1% YoY in 1H 2020, as a strong +11% topline growth was offset by impairment losses on financial assets and aircraft.
- BOC Aviation's FY 2020 guidance for capital expenditure and aircraft deliveries is better than expected because of its shift in focus to purchase and leaseback transactions backed by strong liquidity.
- There is a risk of further impairment losses for BOC Aviation in 2H 2020 and beyond, on top of the $47 million impairment loss on financial assets in 1H 2020.
- BOC Aviation trades at 6.4 times consensus forward FY 2021 P/E and 1.13 times P/B, and it offers a consensus forward FY 2021 dividend yield of 5.4%.
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BOC Aviation: All Eyes On Aircraft Deliveries And Impairment Losses