China Aircraft Leasing Group (1848) H2 2024 earnings summary

Executive summary

• Achieved 18 consecutive years of profitability, with total revenue up 9.2% year-over-year to HK$5,204 million and profit attributable to shareholders surging 809.9% to HK$257.5 million.

• Maintained a stable fleet of 189 aircraft (159 owned, 30 managed), with a 100% utilization rate and 11.6% adjusted rental yield in 2024.

• Record-breaking trading activities, with 50 aircraft signed in SPAs and HK$210 million net trading gain.

• Celebrated 10th anniversary of listing and continued global expansion, with over 30% of customers overseas and all rental payments collected on schedule for three consecutive years.

• Industry recovery drove record air passenger demand and capacity, with China’s civil aviation market setting new records.

Financial highlights

• EBITDA increased 15.1% year-over-year to HK$5,038.4 million.

• Final dividend per share rose 20% to HK$0.18; full-year dividend per share maintained at HK$0.30.

• Net assets grew 4% year-over-year to HK$5,328 million.

• Gearing ratio improved to 83.4% from 84.4% in 2023.

• Total assets at year-end were HK$58,239.7 million, down 2.6% from 2023, mainly due to a reduction in fleet size.

Outlook and guidance

• Rate-cut cycle expected to continue in 2025, lowering USD borrowing costs and supporting aircraft trading.

• Scheduled delivery of 23 aircraft in 2025, all mandated for lease, with over 60% to overseas flag carriers or top-tier airlines.

• Expects global aviation industry growth to continue in 2025, with IATA forecasting over 5 billion passengers and industry revenue exceeding US$1 trillion.

• Ongoing supply chain constraints are likely to sustain high aircraft values and lease rates.

• China’s monetary policy shift to “moderate easing” and favorable RMB financing environment anticipated.