China Aircraft Leasing Group (1848) H1 2024 earnings summary

Executive summary

• Total revenue for 1H2024 rose 8.7% year-over-year to HK$2,528.1 million, with EBITDA up 8.6% to HK$2,481.3 million, driven by fleet expansion and higher lease income.

• Net profit attributable to shareholders declined 34.5% year-over-year to HK$131.7 million, mainly due to higher interest and operating expenses.

• Interim dividend per share was HK$0.12, down from HK$0.15 in the prior year.

• Fleet size grew to 199 aircraft (172 owned, 27 managed), with 12 new deliveries and 5 disposals during the period.

• Overseas customer share surpassed 30% for the first time, and all customers are current on lease payments, with a rent collection rate of 101.3%.

Financial highlights

• Lease income reached HK$2,222.5 million, up 8.1% year-over-year, supported by fleet growth.

• Interest expenses rose 24.6% to HK$1,340.1 million, driven by higher debt and interest rates.

• Net gain from aircraft disposals and components trading was HK$25.4 million, down from HK$44.7 million year-over-year.

• Other income, including government grants, totaled HK$280.2 million, up 24.5% year-over-year.

• Cash and cash equivalents stood at HK$6,114.5 million as of June 30, 2024.

Outlook and guidance

• The global aviation industry is expected to reach record revenues and profits in 2024, with tight aircraft supply supporting high lease rates and values.

• The company plans to leverage growth opportunities, expand globally, and optimize its fleet and financial structure.

• Interest rate pressures are expected to ease as the rate-cutting cycle begins, with a US Fed rate cut anticipated as early as September 2024.