The accounting research firm, GMT Research

Lisa Mangkornkarn

The accounting research firm

GMT Research

GMT Research provides independent insight into markets, sectors and companies throughout Asia. Our unique method of mining a comprehensive collection of corporate financial statements for key data allows us to evaluate the financial health of a company, sectors and the market at large. We also investigate the application of accounting standards by companies and sectors, shedding light on the quality of reported profits. Armed with this information, we help investment professionals navigate the financial landscape.

China Aircraft Leasing Group Holdings / ESG

China Aircraft Leasing Group Holdings (1848 HK)

<p>Don’t be tempted to buy into aircraft leasing businesses despite the recent flurry of IPOs. It is a bad industry and the only stocks to trade above book value are those with creative accounting or government subsidies. The prospect of rising interest rates and low oil prices means that the aircraft leasing cycle is turning down. This explains why everyone is trying to offload these assets. We think <a href="https://www.smartkarma.com/entities/9844" target="_blank" data-smartkarma-citation="entities:9844:1">China Aircraft Leasing Group Holdings Ltd (1848 HK)</a> might not survive the cycle. </p><p>Don’t be left holding the baby.</p>

Don’t be tempted to buy into aircraft leasing businesses despite the recent flurry of IPOs. It is a bad industry and the only stocks to trade above book value are those with creative accounting or government subsidies. The prospect of rising interest rates and low oil prices means that the aircraft leasing cycle is turning down. This explains why everyone is trying to offload these assets. We think China Aircraft Leasing Group Holdings Ltd (1848 HK) might not survive the cycle. Don’t be left holding the baby.

China Aircraft Leasing Group Holdings

AIRCRAFT LEASING: Left Holding the Baby