Core Viewpoint - Cathay Pacific Airways (00293) reported a 4% year-on-year increase in net profit for the first half of the year, reaching HKD 3.651 billion, benefiting from the cessation of profit sharing with preferred shareholders, which aligns with expectations [1] Financial Performance - The company maintained a dividend of HKD 0.2 per share, but the payout ratio decreased from 38% in the first half of last year to 35% in the current period [1] - Daiwa has revised its earnings per share forecast for the company down by 1% and lowered the target price from HKD 10.5 to HKD 9.5, changing its rating from "Hold" to "Underperform" [1] Management Outlook - Management remains confident in travel demand and reiterated expectations for passenger yield recovery to normal levels by the second half of 2025 [1] - The company plans to increase the frequency of long-haul flights, although the recovery of Japanese routes may take time due to recent demand being below average [1] - Year-to-date, cargo demand has been strong, and the company will actively reallocate capacity across its global route network [1]

Core Viewpoint - Morgan Stanley's research report indicates that Cathay Pacific's performance in the first half of the year fell short of market expectations, primarily due to a 12% year-on-year decline in passenger yield, alongside rising operating costs and competitive pressures, similar to Singapore Airlines, highlighting challenges faced by high-end full-service airlines in Asia [1] Summary by Category Financial Performance - Cathay Pacific's operating cash flow remained strong in the first half of the year, with its debt ratio remaining almost unchanged [1] - The company slightly reduced its dividend payout [1] Market Outlook - Morgan Stanley has revised its forecasts for Cathay Pacific for the fiscal years 2025 to 2027, lowering them by 5% to 8% compared to market consensus [1] - The rating for Cathay Pacific has been downgraded from "Neutral" to "Underweight" [1]

大和发表研究报告指，国泰航空上半年纯利按年升4%至36.51亿港元，受惠于停止与优先股股东的利润 分享，符合预期。集团维持每股股息0.2港元，惟派息率由去年上半年的38%跌至今年上半年的35%。大 和将集团今年每股盈利预测下调1%，并将其目标价由10.5港元下调至9.5港元，评级由"持有"降至"跑输 大市"。 该行指，整体而言，管理层对旅游需求仍有信心，并重申其对2025年下半年客运收益率恢复正常的预 期。集团计划增加长途线班次频率。另外由于近期需求低于平均水平，料日本航线或需时恢复。管理层 强调，年初至今，货运需求强劲，将积极地重新分配其全球航线网络的运力。 ...

Group 1 - Cathay Pacific Airways (00293) experienced a decline of over 3%, with a significant drop of more than 9% the previous day, currently trading at HKD 10.49 with a transaction volume of HKD 162 million [1] - The company reported a mid-year performance for 2025, with total revenue of HKD 54.309 billion, representing a year-on-year increase of 9.5%, and a net profit attributable to shareholders of HKD 3.651 billion, up 1.1% [1] - The interim dividend declared is HKD 0.20 per share [1] Group 2 - Cathay Pacific announced the exercise of a purchase option under a 2013 subscription agreement to acquire 14 Boeing 777-9 aircraft, with a basic price of approximately USD 8.1 billion, equivalent to about HKD 63.2 billion, expecting a lower actual cost due to significant discounts from the manufacturer [1] - Morgan Stanley's report indicated that the net profit attributable to ordinary shareholders for the first half of the year increased by 8.3% year-on-year, while operating profit remained flat at HKD 5.9 billion, below market expectations of HKD 6.6 billion [1] - The passenger yield was below expectations, primarily due to the normalization of long-haul route yields and increased competition on short-haul routes, despite strong demand in business class and an increase in passenger load factor year-on-year [1] Group 3 - The market generally anticipates a year-on-year decline in net profit for the full year of 2025, but Morgan Stanley believes the downside risk is limited [1] - The rating is "in line with the market," with a target price set at HKD 12.1 [1]

Major Events - Cathay Pacific (00293) has purchased fourteen Boeing 777-9 aircraft [1] - Hengrui Medicine (01276) received FDA orphan drug designation for the combination of injection Rituximab and chemotherapy for gastric cancer or gastroesophageal junction adenocarcinoma [1] - China National Pharmaceutical Group's self-developed drug TQ05105 (JAK/ROCK inhibitor) has been included in the breakthrough therapy designation program [1] - Junshi Biosciences (02696) completed the first patient dosing in a Phase II clinical study of HLX79 injection combined with Hanli Kang® for active glomerulonephritis in China [1] - YingTai Medical (01501) plans to invest no more than 110 million yuan to establish the Huai Ge Guang Tai Fund [1] - JinJing New Energy (01783) proposed a stock split [1] Financial Data - Cathay Pacific (00293) reported a mid-term profit attributable to shareholders of 3.651 billion HKD, a year-on-year increase of 1.1%, with an interim dividend of 0.20 HKD per share [1] - Uni-President Enterprises China (00220) reported a mid-term profit attributable to shareholders of 1.287 billion CNY, a year-on-year increase of 33.24% [1] - BeiGene (06160) reported a net profit of 94.32 million USD for the second quarter, returning to profitability year-on-year [1] - Sun Hung Kai Properties (00086) issued a profit warning, expecting mid-term profit attributable to shareholders to increase to no less than 800 million HKD year-on-year [1] - Weixin Jinke (02003) issued a profit warning, expecting mid-term comprehensive net profit to be no less than 200 million CNY, a significant year-on-year increase [1] - ZhiZi Cheng Technology (09911) issued a profit warning, expecting mid-term profit attributable to shareholders to increase by approximately 108.9% to 126.7% year-on-year [1] - China Star Optoelectronics (00334) issued a profit warning, expecting a year-on-year increase of no less than 600% in profit attributable to the parent company for the first half of the year [1] - Xinli International (00732) reported a total operating revenue of approximately 1.468 billion HKD in July, a year-on-year decrease of about 3.3% [1]

Major Events - Cathay Pacific (00293) has purchased fourteen Boeing 777-9 aircraft [1] - Hengrui Medicine (01276) received FDA orphan drug designation for the combination of injection Rituximab and chemotherapy for gastric cancer or gastroesophageal junction adenocarcinoma [1] - China National Pharmaceutical Group (01177) has its self-developed drug TQ05105 (JAK/ROCK inhibitor) included in the breakthrough therapy designation program [1] - Junshi Biosciences (02696) completed the first patient dosing in a Phase II clinical study of HLX79 injection combined with Hanli Kang® for active glomerulonephritis in China [1] - YingTai Medical (01501) plans to invest no more than 110 million yuan to establish the Huai Ge Guang Tai Fund [1] - JinJing New Energy (01783) proposed a stock split [1] Financial Data - Cathay Pacific (00293) reported a mid-term profit attributable to shareholders of 3.651 billion HKD, a year-on-year increase of 1.1%, with an interim dividend of 0.2 HKD per share [1] - Uni-President Enterprises China (00220) reported a mid-term profit attributable to shareholders of 1.287 billion CNY, a year-on-year increase of 33.24% [1] - BeiGene (06160) reported a net profit of 94.32 million USD in the second quarter, returning to profitability year-on-year [1] - New World Development Company (00086) issued a profit warning, expecting mid-term profit attributable to shareholders to increase to no less than 800 million HKD year-on-year [1] - Weixin Jinkao (02003) issued a profit warning, expecting mid-term comprehensive net profit to be no less than 200 million CNY, a significant year-on-year increase [1] - ZhiZi Cheng Technology (09911) issued a profit warning, expecting mid-term profit attributable to shareholders to increase by approximately 108.9% to 126.7% year-on-year [1] - Huaxian Optoelectronics (00334) issued a profit warning, expecting a year-on-year increase of no less than 600% in profit attributable to the parent company [1] - Xinli International (00732) reported a total operating revenue of approximately 1.468 billion HKD in July, a year-on-year decrease of about 3.3% [1]

Core Viewpoint - Cathay Pacific reported a net profit of HKD 36.51 billion for the first half of the year, a year-on-year increase of 1.1%, with revenue reaching HKD 543.09 billion, up 9.5% [2][3] Financial Performance - The growth in performance is attributed to increased passenger volume, stable cargo performance, and a 13% decrease in fuel costs due to lower fuel prices [3] - Passenger capacity increased by 26.3% year-on-year, with passenger turnover rising by 30% and average daily passenger count up by 27.8%, resulting in a seat load factor of 84.8%, an increase of 2.4 percentage points [3] - Despite the strong demand for passenger transport, overall yield declined by 12.3% due to increased market capacity [3] Fleet Expansion - Cathay Pacific announced the exercise of a purchase option to acquire 14 Boeing 777-9 aircraft, with the first delivery expected in 2027 [4] Cargo Operations - Cargo revenue increased by 2.2% year-on-year, with cargo capacity up by 8.1% and cargo volume rising by 11.4%, although yield decreased by 3.4% [5] - The cargo sector faces challenges due to geopolitical factors and changes in customs policies, particularly affecting cross-border logistics [5] - The company is focusing on exploring cargo demand in other regions, such as Southeast Asia and India, while also investing in diverse cargo services [5] Strategic Focus - Cathay Pacific is expanding its presence in the Greater Bay Area, enhancing connectivity and services to attract travelers from this region [6] - The company plans to continue expanding domestic routes and has established IT offices in Guangzhou and Shenzhen, with a target of increasing mainland staff to 4,000 by the end of the year [6]

Core Viewpoint - Cathay Pacific Airways announced its mid-year results for 2025 and revealed plans to purchase an additional 14 Boeing 777-9 aircraft, increasing its total order to 35 units [1][3]. Group 1: Financial Details - The basic price for the 14 additional aircraft is approximately $8.1 billion (around HKD 63.2 billion), but the actual cost will be lower due to significant discounts from the manufacturer [3]. - The company’s current market capitalization is HKD 69.868 billion, with a share price of HKD 10.85 [1]. Group 2: Strategic Partnerships - Cathay Pacific has a long-standing partnership with both Airbus and Boeing, with each manufacturer’s aircraft making up about half of its fleet [3]. - The management emphasized the importance of maintaining long-term relationships with both manufacturers [3]. Group 3: Aircraft Performance and Future Plans - The chairman of Cathay Pacific expressed confidence in Boeing's commitment to improving production quality and engineering, noting that Boeing has resumed test flights with four aircraft having completed over 1,400 flights totaling more than 4,000 hours [3]. - The company plans to integrate the new Boeing 777-9 aircraft into its fleet by 2027 and remains open to acquiring more in the future [3].

Major Events - Cathay Pacific (00293) has purchased fourteen Boeing 777-9 aircraft [1] - Hengrui Medicine (01276) received FDA orphan drug designation for injection of Rukang Qutuzumab combined with Atezolizumab and chemotherapy for gastric cancer or gastroesophageal junction adenocarcinoma [1] - China National Pharmaceutical Group (01177) has its self-developed TQ05105 (JAK/ROCK inhibitor) included in the breakthrough therapy designation program [1] - Junshi Biosciences (02696) completed the first patient dosing in a Phase II clinical study of HLX79 injection combined with Hanlikang® for active glomerulonephritis in China [1] - YingTai Medical (01501) plans to invest no more than 110 million yuan to establish the Huai Ge Guang Tai Fund [1] - JinJing New Energy (01783) proposed a stock split [1] Financial Data - Cathay Pacific (00293) reported a mid-term profit attributable to shareholders of 3.651 billion HKD, a year-on-year increase of 1.1%, with an interim dividend of 0.20 HKD per share [1] - Uni-President Enterprises China (00220) reported a mid-term profit attributable to shareholders of 1.287 billion CNY, a year-on-year increase of 33.24% [1] - BeiGene (06160) reported a net profit of 94.32 million USD for the second quarter, returning to profitability year-on-year [1] - Sun Hung Kai Properties (00086) issued a profit warning, expecting mid-term profit attributable to shareholders to increase to no less than 800 million HKD year-on-year [1] - Weimeng Jin Ke (02003) issued a profit warning, expecting mid-term comprehensive net profit to be no less than 200 million CNY, a significant year-on-year increase [1] - Zhi Zi Cheng Technology (09911) issued a profit warning, expecting mid-term profit attributable to shareholders to increase by approximately 108.9% to 126.7% year-on-year [1] - China Star Optoelectronics Technology (00334) issued a profit warning, expecting a year-on-year increase of no less than 600% in profit attributable to the parent company for the first half of the year [1] - Xinli International (00732) reported a total operating revenue of approximately 1.468 billion HKD in July, a year-on-year decrease of about 3.3% [1]

Core Viewpoint - Cathay Pacific Airways announced its mid-year results for 2025 and revealed plans to purchase an additional 14 Boeing 777-9 aircraft, increasing its total orders for this model to 35 units [2] Group 1: Financial Details - The basic price for the additional 14 aircraft is approximately $8.1 billion (around HKD 63.2 billion), with the actual cost expected to be lower due to significant discounts from the manufacturer [2] - The company's current market capitalization is HKD 69.868 billion, with a share price of HKD 10.85 [2] Group 2: Strategic Partnerships - Cathay Pacific has a long-standing partnership with both Airbus and Boeing, with each manufacturer’s aircraft making up roughly half of the fleet [2] - The management emphasized the importance of maintaining long-term relationships with both manufacturers [2] Group 3: Confidence in Boeing - The Chairman of Cathay Pacific expressed confidence in Boeing, noting that the company is prioritizing production quality and engineering amidst challenges [2] - Boeing has resumed test flights, with four aircraft currently undergoing testing, totaling over 1,400 flights and 4,000 hours [2] - Cathay Pacific aims to incorporate the new Boeing 777-9 aircraft into its fleet by 2027 and remains open to acquiring more in the future [2]