Zhi Tong Cai Jing·2025-08-07 03:52Core 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]