Tue, Feb 18, 2014 - Page 13 News List

Chailease focused on 15 percent growth in revenue

By Crystal Hsu  /  Staff reporter

Chailease Holding Co (中租控股), the nation’s top leasing services provider, aims to grow its revenue by at least 15 percent this year from last year, driven by stronger financing demand from customers in China and Taiwan amid sustained economic recovery, top executives said yesterday.

“We expect leasing operations to increase by 20 percent in China and 15 percent in both Taiwan and Thailand this year as the macroenvironment turns more favorable,” Chailease Holding spokesman Kevin Liao (廖英智) said on the sidelines of a press conference to showcase a corporate jet the company bought last year from Canadian aircraft maker Bombardier.

The business landscape may gain better visibility next quarter, as the Lunar New Year holidays somewhat disrupted earnings this month and last month, Liao said.

The Neihu, Taipei-based company posted NT$5.89 billion (US$194.49 million) in net income for last year, up 56 percent from the previous year, on the back of rapid business growth in the Greater China area, according to the company’s statistics.

The results mean a record-high NT$5.91 earnings per share, topping peers in the local capital leasing market.

Chailese has teamed up with Bombardier to tap the burgeoning demand for private and corporate jets in the Asia-Pacific region, Chailease Group chairman Andre Koo (辜仲立) said.

The strategic alliance will allow the Canadian planemaker to broaden the availability of its aircraft in Southeast Asia, from being mainly limited to North America, and boost Chailease’s revenue, Koo said.

Bombardier regional vice president Nilesh Pattanayak forecast that the number of corporate jets in the region would spike from 500 at present to 5,000 in 20 years, as wealthy corporations and businesspeople increasingly desire fast and private transportation to meet their business and recreational needs.

Aircraft leasing bears higher interest rates compared with car leasing in Taiwan, where the interest spread falls between 3 percent and 4 percent, Chailese Financial said.

Shares in Chailese ended up 0.4 percent at NT$74.5 yesterday in Taipei trading, slightly stronger than the TAIEX that closed virtually unchanged, according to Taiwan Stock Exchange data.

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