china everbright limited’s calc delivers another set of robust interim results
total revenue and other income surges 28.1% to hk$1,612.1 million
total revenue and other income surges 28.1% to hk$1,612.1 million
profit for the period up 23.8% to hk$307.8 million
interim dividend of hk$0.22 per share, dividend payout ratio at 48.5
24 august 2018, china everbright limited ( everbright, stock code: 165.hk ) ’s calc (stock code: 01848.hk ), a full value-chain aircraft solutions provider for global airlines, is pleased to announce the results for the six months ended 30 june 2018.
financial highlights
• total revenue and other income increased by 28.1% to hk$1,612.1 million, attributable to the increase in fleet size under operating leases.
• profit attributable to shareholders grew 23.8% to hk$307.8 million, while basic earnings per share was hk$0.454.
• the gearing ratio dropped by 0.2 percentage points to 82.1%.
• the interim dividend increased by 22.2% to hk$0.22 per share, representing a dividend payout ratio of 48.5%.
business review
optimizing calc’s aircraft portfolio
• calc’s fleet size had increased to 115 aircraft as at 30 june 2018, of which 111 are owned aircraft and four are managed.
• as of 30 june 2018, 31% of our fleet were leased to non-mainland china carriers, up from 28% at the end of 2017. our client portfolio included 30 airlines spread across 14 countries and regions.
• as at 30 june 2018, calc had 189 aircraft in its order book, comprising 139 airbus and 50 boeing aircraft, which will be delivered by 2023.
• calc continued to maintain one of the youngest and most modern fleets in the industry, with an average age of 3.9 years and an average remaining lease of 8.2 years.
asset-light business model in full play
• in june 2018, calc joined hands with three large-scale state-owned enterprises as mezzanine financiers, held as 20% and 80% in shareholding, to roll out cag. the latter is an investment vehicle for aircraft portfolio on lease to global airlines. together with mezzanine financing and senior syndicated financing, cag’s aircraft assets are expected to grow to around us$1,200 million. a total of 24 aircraft are expected to be injected into cag, 18 of which are from seed portfolio, to be sold by calc to cag. during the period under review, four seed portfolio aircraft were sold and injected into cag, whilst another 14 aircraft are expected to be injected by end of year. calc will provide aircraft and lease management services to cag – a replicable model that advances calc’s capital efficiency to provide recurring support for the group’s sustainable growth.
• calc completed the disposal of finance lease receivables for one aircraft during the period under review.
• calc has begun to engage in the aircraft trading business.
• deployment of such asset-light strategy supports the group's increasing business capacity and continued global expansion.
sharpened asset management capabilities to strengthen its position as a full value-chain aircraft solutions provider
• calc has sharpened its asset management capabilities by leveraging its synergy with its associate company, aircraft recycling international limited (“ari”) and ari's wholly-owned subsidiary universal asset management, inc. (“uam”).
• ari’s aircraft recycling facility in harbin (the “harbin base”), which is also asia’s first large-scale aircraft recycling facility, commenced operation in june 2018 with an initial handling capacity of 20 aircraft per year.
• calc partnered with ari to complete the redelivery, export and lease of an end-of-lease airbus a321, demonstrating the group's distinct capabilities in full life-cycle aircraft solutions.
mr. mike poon, chief executive officer of calc, added, “with its established infrastructure, calc is well poised to continue its vertical and horizontal integration to amplify its competitive strengths. looking ahead, calc will seek to manage an enlarged and diversified aircraft portfolio powered by its asset-light business model. meanwhile, calc, aided by the technical expertise of ari and uam, will continue to strengthen its transaction efficiency, widen its financing base and expand its technical know-how to solidify its leading position as a full value chain aircraft solutions provider.”
