Zhi Tong Cai Jing·2026-01-19 03:37Group 1: Company Overview - The company is a leading global aircraft operating lessor, listed on the Hong Kong Stock Exchange since 2016, and ranks fifth in aircraft asset value as of Q2 2025 according to Cirium [1] Group 2: Market Demand and Supply - The demand for air travel is recovering, with global RPK and ASK expected to reach 112% and 109% of 2019 levels by October 2025, driving new aircraft purchases and leasing demand [2] - Aircraft delivery rates are slow, with major manufacturers like Boeing and Airbus having significant backlogs, resulting in a supply-demand imbalance that is expected to increase aircraft valuations and rental prices [2] Group 3: Financial Performance - The operating lease yield is projected to increase from 9.2% in 2022 to 10.3% in H1 2025, benefiting from rising rental prices and strong operational capabilities [3] - The company's fleet is expected to expand to 462 owned aircraft by the end of 2025, with a slight recovery in aircraft asset net value in H1 2025 [3] Group 4: Financing and Cost Structure - The company benefits from strong support from its major shareholder, Bank of China, which enhances its credit rating, rated A- by Fitch in H1 2025 [4] - The average funding cost is low at 4.6% in H1 2025, with a significant portion of debt being floating rate, allowing for potential further reductions in financing costs due to anticipated interest rate cuts by the Federal Reserve [4]