<div id="readability-page-1"><div><p>BOC Aviation (SEHK:2588) has reported its FY 2025 results with second half revenue of US$1.16b, basic EPS of US$0.64 and net income of US$445.7m. The trailing 12 month picture shows revenue of US$2.30b, basic EPS of US$1.13 and net income of US$787.2m, alongside a net margin of 34.3%, lower than the 43.1% recorded a year earlier. The company has seen revenue move from US$1.08b and basic EPS of US$0.67 in the second half of FY 2024 to US$1.16b and US$0.64 in the second half of FY 2025. The latest earnings were also shaped by a one off gain of US$265.4m, so investors are likely to focus on how these margins hold up as growth and income drivers are weighed against the quality and sustainability of profits.</p> <p>See our full analysis for BOC Aviation.</p><p>With the headline numbers on the table, the next step is to see how this mix of revenue, EPS and margin trends lines up with the prevailing stories around BOC Aviation, and where the fresh data pushes back against widely held narratives.</p> <p>See what the community is saying about BOC Aviation</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/caf3f81b-d169-45eb-b533-ce063574975a/chart/earnings-and-revenue-history/query-ZGF0ZT0yMDI2LTAzLTIw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/caf3f81b-d169-45eb-b533-ce063574975a/chart/earnings-and-revenue-history/query-ZGF0ZT0yMDI2LTAzLTIw"/><figcaption>SEHK:2588 Earnings &amp; Revenue History as at Mar 2026</figcaption></figure> <h2>TTM margin slips to 34.3%</h2> <ul> <li>Trailing 12 month net margin sits at 34.3%, compared with 43.1% a year earlier, on revenue of US$2.30b and net income of US$787.2m.</li> <li>Consensus narrative highlights pricing power from fleet modernization and strong lease demand. However, the move from a 43.1% to 34.3% margin suggests investors need to weigh that optimistic view against the tighter profitability now visible.     <ul> <li>Forecast revenue growth of about 10.4% per year supports the idea of solid top line momentum, but earnings growth forecasts of about 7% per year are slower than the Hong Kong market at 11.8%.</li> <li>This combination of healthy revenue expectations and softer margins directly tests the bullish claim that pricing power will automatically translate into stronger profitability.</li> </ul> </li> </ul> <h2>One off US$265m gain distorts EPS</h2> <ul> <li>The trailing 12 month earnings include a one off gain of US$265.4m, which sits inside the US$787.2m net income figure and influences the 1.13 US$ TTM EPS.</li> <li>Consensus narrative points to more stable, recurring earnings from long term leases, but the size of the one off gain means part of the recent EPS profile is not from repeatable cash flows.     <ul> <li>Bears argue that when a single US$265.4m item is a large share of annual profit, it makes it harder to judge how durable the current 34.3% margin really is.</li> <li>With earnings forecast to grow about 7% per year, investors may want to separate that one off boost from the underlying run rate implied by those forecasts.</li> </ul> </li> </ul> <p><strong>🐻 BOC Aviation Bear Case</strong></p><h2>P/E of 8.7x versus DCF value</h2> <ul> <li>The current P/E of 8.7x is below the Hong Kong Trade Distributors industry average of 11.9x and the peer average of 15x, while the DCF fair value of HK$31.13 sits well below the current share price of HK$76.90.</li> <li>Supportive investors point to the lower P/E and projected 10.4% revenue growth as reasons the stock could look inexpensive. However, the DCF fair value of HK$31.13 versus a HK$76.90 price and weaker interest and dividend coverage both limit how simple that value argument is.     <ul> <li>Dividend yield of about 4.62% is not well covered by free cash flow, and interest payments are not well covered by earnings, which critics highlight as key balance sheet pressures.</li> <li>The gap between the HK$76.90 price and both the DCF fair value of HK$31.13 and the 92.04 HK$ analyst target keeps the valuation debate very dependent on how investors rate those cash flow and balance sheet risks.</li> </ul> </li> </ul> <p><strong>🐂 BOC Aviation Bull Case</strong></p><h2>Next Steps</h2> <p>To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for BOC Aviation on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.</p> <p>With both risks and rewards in play, it is worth taking a closer look at the numbers yourself and forming a view while the latest results are still fresh, starting with the 3 key rewards and 3 important warning signs.</p> <h2>Explore Alternatives</h2> <p>BOC Aviation combines a lower 34.3% net margin, a P/E below peers and weaker interest and dividend coverage, which points to balance sheet pressure.</p> <p>If those funding and payout pressures concern you, it is worth checking companies that look financially sturdier by starting with the solid balance sheet and fundamentals stocks screener (381 results).</p> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3>Valuation is complex, but we're here to simplify it.</h3><p>Discover if BOC Aviation might be undervalued or overvalued with our detailed analysis, featuring <strong>fair value estimates, potential risks, dividends, insider trades, and its financial condition.</strong></p><p>Access Free Analysis</p></div></div></div>

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<p>BOC Aviation (SEHK:2588) reported FY 2025 results showing a revenue of US$1.16b and a net margin decline to 34.3% from 43.1% a year earlier. The trailing 12-month net income was US$787.2m, influenced by a one-off gain of US$265.4m. While revenue growth is forecasted at 10.4% annually, earnings growth is slower at 7%. The current P/E of 8.7x is below industry averages, raising concerns about balance sheet pressures and dividend coverage. Investors are advised to assess the sustainability of profits amid these challenges.</p>

BOC Aviation (SEHK:2588) Margin Decline Challenges Bullish Pricing Power Narrative