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

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)

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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

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52-week Range

Market Cap (USDm)

P/E

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