CALC - China Aircraft Leasing Group Holdings Ltd.

08/24/2021 | Press release | Distributed by Public on 08/24/2021 03:16

CALC (1848.HK) announces 2021 interim resultsQuality assets and clientele ensured steady operationsDiversified asset management capabilities to grasp recovery opportunities

24

Aug

2021

CALC (1848.HK) announces 2021 interim results
Quality assets and clientele ensured steady operations
Diversified asset management capabilities to grasp recovery opportunities

Hong Kong, 24 August 2021 - China Aircraft Leasing Group Holdings Limited ('CALC' or the 'Company', HKSE stock code: 01848; together with subsidiaries, the 'Group'), a full value chain aircraft solutions provider for the global aviation industry, is pleased to announce the Group's results for the six months ended 30 June 2021 (the 'Period').

Financial Highlights

  • For the Period, total revenue of the Group was HK$1,585.2 million, level to that of the same period of last year (1H2020: HK$1,635.9 million).
  • Profit for the Period increased by 10.8% to HK$353.5 million (1H2020: HK$319.0 million). Profit attributable to shareholders of the Company dropped by 8.7% from the same period last year, amounting to HK$302.6 million (1H2020: HK$331.6 million). Earnings per share were HK$0.421 (1H2020: HK$0.491).
  • The Board has resolved to declare an interim dividend of HK$0.15 (1H2020: HK$0.20) per ordinary share, totaling HK$110.0 million. The Company has continued its scrip dividend scheme for the interim dividend for 2021.

Business Review

Maintaining steady and consistent operation strategies

  • During the Period, the Group delivered six aircraft, sold four aircraft and disassembled one aircraft. As such, CALC has 129 aircraft in its fleet as of 30 June 2021, including 104 owned and 25 managed aircraft.
  • As of 30 June 2021, by number of aircraft, 88.5% of CALC's owned fleet are narrow-body aircraft, a highly liquid asset class and the most popular aircraft type mainly serving domestic routes and short-haul flights, which had been proven to be relatively less impacted by the pandemic.
  • By number of aircraft´╝î77.9% of CALC's owned fleet as of 30 June 2021 were leased to Chinese airlines customer, including Hong Kong, Macau and Taiwan. The majority of CALC's overseas clients are mainly flag-carriers or backed by strong shareholders. As of 30 June 2021, CALC's owned and managed aircraft were on lease to 37 airlines in 16 countries and regions.
  • As at 30 June 2021, CALC's owned fleet has an average age of 6.5 years and an average remaining lease tenor of 7.0 years. With no lease agreements expiring in the next 12 months, CALC has been alleviated the pressure for remarketing of aircraft assets in the current volatile market in the near term. All aircraft to deliver in the next 18 months have been mandated.
  • A modern fleet comprising the most popular aircraft models has contributed to CALC's full fleet utilization rate at 100 % for the Period.

Progressing the diversified asset management model

  • Through various formats including rental realization, asset securitization, establishment of joint ventures with other lessors and management of funds investing in the Company's fleet, CALC persists in progressing diversified development of aircraft asset management businesses to accommodate preferences of different investors. During the Period, the Group, through working seamlessly with Chinese investors, sold four aircraft.
  • Leveraged the success experience with CAG, CALC applied the same operation model and established another aircraft investment platform ARG Cayman 1 Limited ('ARG') focusing on old aircraft portfolios and trading of parts and components. During the Period, the Group introduced two new investors to ARG.

Steady financing platform development first endorsed by international agencies

  • In January 2021, CALC completed an issuance to an independent third party US$35 million five-year senior unsecured bonds that bear a coupon interest rate of 5.9%, as the second issue of the total of US$70 million agreed on with third party in November 2020. The first US$35 million issue had been drawn down in November last year.
  • During the Period, CALC has received a first-time corporate family rating (CFR) of Ba1 and a foreign currency and local currency issuer ratings of Ba2 from Moody's Investors Service Pty Ltd, with a stable outlook. This was followed by assignment by Fitch Ratings to the Company for the first time a Long-Term Issuer Default Rating (IDR) of 'BB+' with a stable long term outlook.
  • In July CALC updated the US$3 billion Guaranteed Medium Term Note Programme it had previously established. CALC continues to monitor the market situation closely for timing the issuances to lower funding costs.
  • The endorsements earned from the international agencies establishes a footing for CALC to move a notch higher in the future and become an investment-grade issuer in the medium term, helping it reduce financing costs, optimize the debt structure, increase the proportion of unsecured loans, and attract a wider group of investors.

Dr. Zhao Wei, Chairman of Boards of Directors of China Everbright Limited and CALC, said: 'During the first half of 2021, CALC continued to consolidate strengths of its global aircraft operating leasing businesses, and its operations continued to improve, exhibiting strong resilience. The ratings awarded by international agencies underscored the Company's leading market position against the challenging environment in the global aviation industry, and recognized the Company's stable businesses, premium creditability and strong shareholder support. China Everbright Limited has full confidence in CALC's development prospects. We will continue to nurture CALC's development based on our discreet strategic planning, facilitate CALC to accelerate the building of its own business platforms, so as to enhance interactions and synergies between its industry chain and asset managements, and endeavor to establishing a world-leading full-industry-chain aircraft lessor.'

Mr. Mike Poon, CEO of CALC said: 'Whilst the global aviation industry is facing unprecedented challenges in the road to recovery, we are seeing light at the end of the tunnel. We are very pleased that with the quality fleet assets and shareholder support, CALC has exhibited strong resilience against the tests of pandemic and market dynamics with its integrated strengths. Riding on the ongoing rising lessors' share in the aviation market, coupled with the leading recovery of Chinese domestic aviation, CALC will utilize its established edges in the aviation value chain and large order book to capture market demand with its diversified aircraft asset management capabilities; and will expand the high-quality clientele in rapidly developing regions to get prepared for tapping opportunities offered by the market recovery.'

Share to: