China Aircraft Leasing Group Holdings Limited (CALC) reported solid first-half FY26 results, buoyed by strong aircraft-trading activity and higher other income.
Financial Performance • Revenue climbed 57.9% year on year to HK$3.91 billion. – Lease income slipped 2.5% to HK$1.86 billion. – Aircraft and components trading income surged to HK$829.40 million (1H25: HK$136.43 million). – Other income multiplied to HK$1.16 billion, lifted by HK$861.01 million of lessee compensation and HK$185.08 million of government grants. • Profit attributable to shareholders rose 22.0% to HK$171.37 million; total profit increased 31.5% to HK$207.68 million. • EBITDA advanced 22.6% to HK$2.42 billion. • Basic EPS improved to HK$0.229 (1H25: HK$0.189). • Interim dividend raised 16.7% to HK$0.14 per share, with a scrip option at a 4% discount.
Cost & Margin Dynamics • Interest expenses fell 8.5% to HK$1.01 billion as average US$ SOFR declined to 3.78%. • Depreciation and impairment charges grew 29.2% to HK$883.15 million, partly offset by higher residual-value assumptions adopted from 1 January 2026, which cut depreciation by HK$184.60 million. • Other operating expenses decreased 14.8% to HK$227.71 million. • Net other losses widened to HK$438.50 million, mainly due to HK$442.24 million in currency losses on RMB exposure. • Effective tax charge jumped to HK$320.24 million (1H25: HK$30.53 million), reflecting tax on lessee compensation income.
Fleet & Operations • Seven new A320neo aircraft delivered; 16 mid-to-end-of-life aircraft acquired; nine aircraft sold. • Total fleet reached 179 aircraft, including 163 owned and 16 managed. • Single-aisle models represent 91.4% of the owned fleet; average age 9.0 years, average remaining lease term 6.5 years. • Orderbook stands at 123 aircraft (98 A320neo family, 25 COMAC C909). All deliveries due within 15 months are mandated for lease, with ~80% to overseas airlines. • Associated Indonesian carrier TransNusa operates five COMAC C909s and has transported over 710,000 passengers to date.
Balance Sheet & Liquidity • Total assets increased 10.1% to HK$63.89 billion; total liabilities up 10.8% to HK$56.54 billion. • Cash and cash equivalents rose 47.4% to HK$5.19 billion; undrawn facilities total HK$17.66 billion. • Interest-bearing debts expanded 10.7% to HK$52.08 billion; gearing ratio remained stable at 81.5%. • During the period, CALC secured approximately US$2.40 billion in new and renewed facilities, completed a US$480 million unsecured PDP syndicated loan (2x oversubscribed), issued RMB1.50 billion five-year bonds at a 2.25% coupon, and repaid US$35 million and RMB1.50 billion of bonds.
Strategic Focus Management highlighted continued investment in new-generation, fuel-efficient aircraft, expansion of the overseas customer base (now over 40%), and development of full life-cycle services including engine MRO partnerships. The company will maintain prudent financial management, monitor FX and rate movements, and explore additional equity or equity-like financing to support future growth.
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