Core Viewpoint - The report from Shenwan Hongyuan maintains a "buy" rating for China Ship Leasing (03877), highlighting the company's strong fleet structure, cost control, and high dividend yield as competitive advantages [1] Group 1: Financial Performance - The effective income tax rate for the company is projected to increase to 15% from 2025 to 2027, leading to revised net profit estimates of HKD 2 billion, 2.2 billion, and 2.4 billion for those years, down from previous estimates of HKD 2.3 billion, 2.6 billion, and 2.8 billion [1] - As of June 30, 2025, the company's comprehensive financing cost is controlled at 3.1%, a reduction of 40 basis points from the beginning of the year [2] - The company's debt-to-asset ratio stands at 65.2%, a decrease of 2.3% from the end of the previous year [2] Group 2: Fleet and Operations - By mid-2025, the company completed new contracts for 6 new vessels with a total contract value of USD 308 million, all of which are mid-to-high-end ship types [1] - The fleet consists of 143 vessels, with 121 in operation and 22 under construction, and an average age of approximately 4.13 years, indicating a competitive and young fleet [1] - The average remaining lease term for contracts exceeding one year is 7.64 years, enhancing the stability of the company's performance [1] Group 3: Dividend Policy - The company declared an interim dividend of HKD 0.05 per share for 2025, an increase from HKD 0.03 per share in the previous year [2] - The dividend payout ratio for the end of 2024 is expected to be 30%, and if maintained, the total dividend yield for 2025 could reach approximately 7.7% [2]