BOC Aviation Ltd
HKEX:2588

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BOC Aviation Ltd Logo
BOC Aviation Ltd
HKEX:2588
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Price: 74.7 HKD
Market Cap: 51.8B HKD

Operating Margin
BOC Aviation Ltd

64.6%
Current
60%
Average
4%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
64.6%
=
Operating Profit
1.2B
/
Revenue
1.8B

Operating Margin Across Competitors

BOC Aviation Ltd
Glance View

BOC Aviation Ltd., a significant player in the aircraft leasing sector, operates at the confluence of aviation and finance, driving a business model that bridges airlines’ needs with long-term fleet strategies. Originally established as Singapore Aircraft Leasing Enterprise in 1993, it was eventually acquired by the Bank of China in 2006, leading to its current branding. Positioned in the dynamic hub of Singapore, BOC Aviation benefits from access to Asia's bustling aviation markets and maintains a global presence, providing a wide array of leasing solutions. The company's business hinges on purchasing aircraft and then leasing them to airlines worldwide, enabling carriers to expand or modernize their fleets without the heavy initial capital expenditure that direct aircraft purchases entail. The mechanics of BOC Aviation’s revenue generation involve long-term lease agreements that provide consistent rental income. This stable inflow is often further fortified by maintenance agreements and asset management services. These agreements are essential for airlines to maintain operational flexibility, especially in a sector often characterized by cyclical demand fluctuations and high volatility. BOC Aviation’s fleet comprises predominantly narrow-body and wide-body aircraft, which are subject to strategic placements among a diverse airline customer base across geographies. The company’s nuanced understanding of global air travel trends, coupled with its capacity to access financial instruments and banking facilities via its connection to the Bank of China, allows it to effectively manage risks and capitalize on growth opportunities within the ever-evolving aviation industry.

Intrinsic Value
115.38 HKD
Undervaluation 35%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
64.6%
=
Operating Profit
1.2B
/
Revenue
1.8B
What is the Operating Margin of BOC Aviation Ltd?

Based on BOC Aviation Ltd's most recent financial statements, the company has Operating Margin of 64.6%.

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