Core Viewpoint - Cathay Securities maintains a "Buy" rating for China Ship Leasing (03877), forecasting a slight decline in pre-tax profit for the first half of 2025, with net profit estimates adjusted down to 2.2/2.4/2.5 billion HKD for 2025-2027 due to tax impacts [1][2] Group 1: Financial Performance - The company recorded a net profit of 1.15 billion HKD in the first half of 2025, a year-on-year decrease of 14%, primarily due to the impact of Hong Kong's international corporate tax reform [2] - Excluding the tax impact, pre-tax profit only slightly decreased by 5% [2] - The fleet consists of 143 vessels (including orders), with 121 operational vessels, and long-term leasing vessels estimated at 86, indicating stable profitability [2] Group 2: Market Outlook - The upcoming peak season for refined oil transportation is expected to drive performance improvement in the second half of the year, with the MR fleet likely to enhance earnings [3] - Short-term leasing business is highlighted as a source of profit elasticity, benefiting from the global shift of refineries and increased demand for refined oil transportation [3] Group 3: Dividend Policy - The company plans to increase its dividend payout ratio to 40% in 2024, with the mid-year dividend for 2025 raised to 0.05 HKD per share, reflecting a commitment to shareholder returns [4] - Current PE valuation stands at 5.5 times, with a dividend yield of 7.3%, which could rise to 9% if the payout ratio increases to 50% [4]