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Smartkarma AI

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

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<ul>
 <li>Following a comprehensive restructuring that saw the company exit bankruptcy protection, <a href="https://smartkarma.com/entities/norwegian-air-shuttle-asa">Norwegian Air Shuttle</a> has successfully pivoted from a struggling long-haul carrier to a focused, profitable Nordic-based low-cost airline.</li>
 <li>The company has demonstrated a significant financial turnaround, with strong revenue growth and a return to profitability, driven by renewed travel demand and a disciplined operational strategy. However, the balance sheet remains leveraged.</li>
 <li>Intense competition from larger European low-cost carriers and volatility in fuel prices and currency exchange rates represent the most significant headwinds to sustained profitability and future growth.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  Following a comprehensive restructuring that saw the company exit bankruptcy protection, Norwegian Air Shuttle has successfully pivoted from a struggling long-haul carrier to a focused, profitable Nordic-based low-cost airline.
  The company has demonstrated a significant financial turnaround, with strong revenue growth and a return to profitability, driven by renewed travel demand and a disciplined operational strategy. However, the balance sheet remains leveraged.
  Intense competition from larger European low-cost carriers and volatility in fuel prices and currency exchange rates represent the most significant headwinds to sustained profitability and future growth.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Norwegian Air Shuttle (NAS NO) - Nov 2025

Founder of Antler Capital

Stanley Tsai, CFA

BOC Aviation | BOCAVI <a href="https://www.smartkarma.com/entities/boc-aviation" target="_blank" data-smartkarma-citation="entities:22689:1" rel="noopener">(2588 HK)</a> 
As a follow-up on <a href="https://www.smartkarma.com/profiles/david-blennerhassett" target="_blank" data-smartkarma-citation="accounts:840" rel="noopener">David Blennerhassett</a>'s Smartkarma Original <a href="https://www.smartkarma.com/insights/asia-pac-airports-ups-but-mostly-downs" target="_blank" data-smartkarma-citation="insights:51855" rel="noopener">Asia-Pac Airports: Ups, But Mostly Downs</a>, we take a look at BOCAVI, which, in our view, is a compelling alternative to APAC airport operators and airlines as a post-Covid trade.
BOCAVI is a highly geared play on the resumption of air travel. The stock has gone through periods of significant out/underperformance against the APAC airports and airlines and may continue to give investors high beta in either direction. The geographical exposure is broad, but there is a heavy skew towards short-haul flights, which will see the earliest acceleration in passenger traffic.
Management's countercyclical capex expansion increasingly looks like a shrewd bet. At its core, BOCAVI is in the capital management business. Strong liquidity and BOC's explicit backing have allowed the lessor to grow its purchase-and-leaseback portfolio through the depths of the pandemic. While airlines are still hemorrhaging cash, over 99% of BOCAVI's aircraft remain cash-generating.  
We expect the firm's undiscounted committed revenues to top USD20bn in 2021. By year-end, the value of the portfolio will have doubled since 2014. We estimate the present value of this cashflow stream to be HKD72.80/share. We are essentially getting free growth optionality. 
We are buyers at book value. The stock is trading at 8x P/E and 1.1x P/B on a 12M forward basis. BOCAVI is reasonably liquid, with a market cap of USD6bn and average daily turnover of USD3.5mn. Besides the obvious risk of protracted lockdowns globally, a well-functioning USD bond market and BOC's funding support are critical to our investment case.
Attachment: BOCAVI Financial Summary

BOC Aviation | BOCAVI (2588 HK) 
As a follow-up on David Blennerhassett's Smartkarma Original Asia-Pac Airports: Ups, But Mostly Downs, we take a look at BOCAVI, which, in our view, is a compelling alternative to APAC airport operators and airlines as a post-Covid trade.
BOCAVI is a highly geared play on the resumption of air travel. The stock has gone through periods of significant out/underperformance against the APAC airports and airlines and may continue to give investors high beta in either direction. The geographical exposure is broad, but there is a heavy skew towards short-haul flights, which will see the earliest acceleration in passenger traffic.
Management's countercyclical capex expansion increasingly looks like a shrewd bet. At its core, BOCAVI is in the capital management business. Strong liquidity and BOC's explicit backing have allowed the lessor to grow its purchase-and-leaseback portfolio through the depths of the pandemic. While airlines are still hemorrhaging cash, over 99% of BOCAVI's aircraft remain cash-generating.  
We expect the firm's undiscounted committed revenues to top USD20bn in 2021. By year-end, the value of the portfolio will have doubled since 2014. We estimate the present value of this cashflow stream to be HKD72.80/share. We are essentially getting free growth optionality. 
We are buyers at book value. The stock is trading at 8x P/E and 1.1x P/B on a 12M forward basis. BOCAVI is reasonably liquid, with a market cap of USD6bn and average daily turnover of USD3.5mn. Besides the obvious risk of protracted lockdowns globally, a well-functioning USD bond market and BOC's funding support are critical to our investment case.
Attachment: BOCAVI Financial Summary

BOC Aviation (2588 HK): The Stars Don't Look Bigger, but They Do Look Brighter

Norway

Norwegian Air Shuttle ASA is a low cost airline.  The Company offers air passenger transportation services within Norway and between destinations in Norway and elsewhere in Europe.

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Norwegian Air Shuttle (NAS NO)

Primer: Norwegian Air Shuttle (NAS NO) - Nov 2025

Following a comprehensive restructuring that saw the company exit bankruptcy protection, Norwegian Air Shuttle has successfully pivoted from a...

αSK

BOC Aviation (2588 HK): The Stars Don't Look Bigger, but They Do Look Brighter

As downstream players continue to hemorrhage cash, over 99% of BOCAVI’s aircraft are still cash-generating. Valuation is undemanding for a high...

Stanley Tsai, CFA

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