Award-winning Financial Journalist

Ashish Saxena

Equity Capital Markets

In what would be the biggest ever listing by an aircraft lessor, <a href="https://www.smartkarma.com/entities/656" target="_blank" data-smartkarma-citation="entities:656">Bank Of China Ltd</a>'s Singapore-based subsidiary BOC Aviation Ltd is seeking to raise US$ 2-3 bln in an IPO in Hong Kong.The company filed a <a href="http://www.hkexnews.hk/APP/SEHK/2016/2016030401/SEHKCaseDetails-2016030401.htm" target="_blank">draft prospectus</a> with the regulator on March 4.Just a week before that, <a href="https://www.smartkarma.com/entities/22635" target="_blank" data-smartkarma-citation="entities:22635">China Development Bank Financial Leasing Co Ltd</a> (CDBFL) - a comprehensive leasing company with an exposure to aircraft leasing among other assets - filed its <a href="http://www.hkexnews.hk/APP/SEHK/2016/2016022602/SEHKCaseDetails-2016022602.htm" target="_blank">draft prospectus</a> with the regulator.Right now, <a href="https://www.smartkarma.com/entities/9844" target="_blank" data-smartkarma-citation="entities:9844">China Aircraft Leasing Group Holdings Ltd</a> (CALC) is the only aircraft lessor listed on HKSE.While CALC is into operating and financial leasing of aircraft, CDBFL's business includes operating and financial leasing of aircraft, ship, commercial vehicle, construction machine, infrastructure, property, etc.That makes BOC Aviation a pure play on operating leasing of aircraft. In this insight, you'll read about:<ul><li>How BOC Aviation's fleet stacks up against that of CDBFL and CALC. You'll also read about their order books and top customers.</li><li>Why BOC Aviation is more profitable than CDBFL and CALC. Read the full analysis to find out which three factors make BOC Aviation more profitable than the two peers.</li><li>Why BOC Aviation's prudent dividend policy is a rare treat.</li><li>How UK SFO's investigation into export credits to <a href="https://www.smartkarma.com/entities/21380" target="_blank" data-smartkarma-citation="entities:21380">Airbus</a> is likely to impact BOCA and CDBFL. This is a risk that wasn't there until earlier this week.</li><li>Finally, what Airbus executives' warning on Brexit could mean for orders placed by BOCA and CDBFL. Again, a recent development in which Airbus executives openly opposed Brexit.</li></ul>Before we delve deeper into each of those points, let's take a quick look at the company's background.

In what would be the biggest ever listing by an aircraft lessor, Bank Of China Ltd's Singapore-based subsidiary BOC Aviation Ltd is seeking to raise US$ 2-3 bln in an IPO in Hong Kong.The company filed a draft prospectus with the regulator on March 4.Just a week before that, China Development Bank Financial Leasing Co Ltd (CDBFL) - a comprehensive leasing company with an exposure to aircraft leasing among other assets - filed its draft prospectus with the regulator.Right now, China Aircraft Leasing Group Holdings Ltd (CALC) is the only aircraft lessor listed on HKSE.While CALC is into operating and financial leasing of aircraft, CDBFL's business includes operating and financial leasing of aircraft, ship, commercial vehicle, construction machine, infrastructure, property, etc.That makes BOC Aviation a pure play on operating leasing of aircraft. In this insight, you'll read about:How BOC Aviation's fleet stacks up against that of CDBFL and CALC. You'll also read about their order books and top customers.Why BOC Aviation is more profitable than CDBFL and CALC. Read the full analysis to find out which three factors make BOC Aviation more profitable than the two peers.Why BOC Aviation's prudent dividend policy is a rare treat.How UK SFO's investigation into export credits to Airbus is likely to impact BOCA and CDBFL. This is a risk that wasn't there until earlier this week.Finally, what Airbus executives' warning on Brexit could mean for orders placed by BOCA and CDBFL. Again, a recent development in which Airbus executives openly opposed Brexit.Before we delve deeper into each of those points, let's take a quick look at the company's background.

BOC Aviation: Probably The Best In Class. But Will UK SFO's Latest Probe Into Airbus Spoil The Mood?

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

China Development Bank Financial Leasing / Equity Capital Markets

CDB Financial Leasing &nbsp;(CDBFL) plans to raise up to US$1bn through its HK IPO in 1H16. CDBFL could be one of the first among a few large leasing firms looking to list this year, BOC Aviation recently filed its prospectus and Minsheng Financial Leasing is rumored to be looking at doing an IPO as well.&nbsp;In this insight take a look at some of the factors that could impact the deal. Post deal launch we will follow up with another insight to discuss valuations.&nbsp;In terms of the company's business segments, Aircraft leasing is the only segment which has been performing consistently. The other segments have either seen a sharp jump in NPLs and/or a decline in assets, which has put pressure on growth and bottom line for these segments.Apart from financial performance, the worrying aspect remains that&nbsp;some of the company's top managers have resigned after being investigated in relation to domestic aircraft leasing contracts.

CDB Financial Leasing &nbsp;(CDBFL) plans to raise up to US$1bn through its HK IPO in 1H16. CDBFL could be one of the first among a few large leasing firms looking to list this year, BOC Aviation recently filed its prospectus and Minsheng Financial Leasing is rumored to be looking at doing an IPO as well.&nbsp;In this insight take a look at some of the factors that could impact the deal. Post deal launch we will follow up with another insight to discuss valuations.&nbsp;In terms of the company's business segments, Aircraft leasing is the only segment which has been performing consistently. The other segments have either seen a sharp jump in NPLs and/or a decline in assets, which has put pressure on growth and bottom line for these segments.Apart from financial performance, the worrying aspect remains that&nbsp;some of the company's top managers have resigned after being investigated in relation to domestic aircraft leasing contracts.

CDB Leasing Pre-IPO-Review - Flying Under the Radar of a Corruption Probe

Hong Kong

APAC Resources Limited is an investment holding company. The Company is principally involved in investments in global resources companies and commodity trading. APAC has offices in Hong Kong and Shanghai.

Pizu Group Holdings Limited , through its subsidiaries,provides, develops, and distributes educational software in China. The Company also provides software services for management of power sales, power production and power plant.

CNNC International Limited participates in uranium products trading and other nuclear power generation projects.

Hong Kong ChaoShang Group Limited operates an investment holding company. The Company, through its subsidiaries, operates vessel chartering, trading, money lending, factoring, and finance leasing business. Hong Kong ChaoShang Group provides services in Hong Kong.

Zhaobangji Properties Holdings Limited operates as a construction machinery trading company. The Company markets construction machinery products, drilling accessories, and other products. Zhaobangji Properties Holdings also provides local transportation services.

CITIC Resources Holdings Limited, through its subsidiaries, operates the Portland Aluminum Smelter and sells aluminum finished products. The Company also imports and exports commodities. In addition, Citic Resources operates coal mining and exploration business.

Greater China Financial Holdings Limited provides pawnshop, P2P online financial platform and financial leasing. The Company's primary business also includes securities trading, asset management, money lending and other types of financial services.

China Chengtong Development Group Limited, through its subsidiaries, has main business in properties investment, strategic investment in cement business, and trading in metal and chemical business in China.

China Strategic Holdings Limited, through its subsidiaries, manufactures and trades pharmaceutical, batteries, and related products.  The Company also invests in securities.

Green Energy Group Limited provides trading of bio-cleaning materials, generators, recyclable plastic materials, waste construction materials, and biodiesel.

Pan-United Corporation Limited is an infrastructure and logistics group involved in port operations, logistics, shipping, and basic building materials activities. The Company's core businesses are focused primarily in Singapore for its basic building materials, Southeast Asia for its shipping business, and in China for its port & logistics business.

Lianyungang Ideal Group Co., Ltd. produces, processes, and markets agricultural products.  Through its subsidiaries, the Company also operates in import and export trading and biopharmaceuticals manufacturing.  Lianyungang Ideal trades machinery, plastic products, arts and crafts, and timber.

TECHNO ASSOCIE Co., Ltd. is a trading company that mainly produces and distributes screws.  The Company also sells metal and chemical products, and industrial machinery.  Techno Associe has subsidiaries in Singapore, United States, and China.

SCH Group Berhad, through its subsidiary, imports, distribute and supplies industrial spare parts for quarry equipment.

Emeco Holdings Limited provides commercial equipment rental services. The Company rents earthmoving equipment to the mining industries in Australia and Indonesia.

Xiamen Xindeco Ltd. manufactures photoelectric products. The Company produces and sells light emitting diode road lighting products, light emitting diode indoor lighting products, and other products. Xiamen Xindeco markets its products throughout China.

Wuhan Double Co., Ltd. develops real estate, manufactures and markets optical fibers and white spirit.  The Company also sells electronic products, network products, and provides network services.

TSUBAKIMOTO KOGYO CO., LTD. is a wholesaler of machinery, equipment, and parts, most of which are produced by Tsubakimoto Chain and Mitsubishi Heavy Industries. The Company primarily distributes transmission equipment and industry materials. Tsubakimoto Kogyo also handles factory automation equipment/systems including robots and control systems.

TOMOE ENGINEERING CO., LTD. manufactures and sells chemical materials and chemical machinery ranging from centrifuges to sewage treatment equipment.  The Company's products include grinding machines, shaftless conveyers, filtration screens, low-noise dewatering centrifuges, and surface treatment machines for plastic films.

KANADEN CORPORATION, an affiliate of Mitsubishi Electric, sells electronics components and devices, and industrial machines.  The Company also sells factory automation products and computers for office use.  Kanaden also forms a special sales contract with Mitsubishi Electric, Yokoga Electric, and Japan Aviation Electronics.

China Aircraft Leasing Group Holdings Limited operates as investment holding company. The Company, through its subsidiaries, provides aircraft leasing services. China Aircraft Leasing offers its services throughout China.

China Aircraft Leasing Group Holdings (1848 HK)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

China Aircraft Leasing Group Holdings (1848 HK)

BOC Aviation: Probably The Best In Class. But Will UK SFO's Latest Probe Into Airbus Spoil The Mood?

In what would be the biggest ever listing by an aircraft lessor, Bank Of China Ltd's Singapore-based subsidiary BOC Aviation Ltd is seeking to...

Ashish Saxena

CDB Leasing Pre-IPO-Review - Flying Under the Radar of a Corruption Probe

CDB Financial Leasing (CDBFL) plans to raise up to US$1bn through its HK IPO in 1H16. CDBFL could be one of the first among a few large leasing...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)