Core Viewpoint - The company reported a 6% year-on-year increase in revenue to $1.24 billion for 1H25, while net profit decreased by 26% to $342 million, primarily due to a one-time impact from the return of two Russian aircraft in 1H24. Excluding this impact, core net profit increased by 20%, aligning with expectations [1]. Group 1: Financial Performance - The company achieved a capital expenditure of $1.9 billion in 1H25, marking a 138% year-on-year increase, with a total of 24 aircraft delivered, an increase of 6 aircraft year-on-year and 4 aircraft quarter-on-quarter [1]. - The operating lease fleet's net book value increased by 1% year-to-date to $18.2 billion, with a total fleet size of $22.2 billion, reflecting a 2% increase from the beginning of the year [2]. - The net leasing yield for operating leases rose by 0.5% year-on-year to 7.5%, driven by the introduction of high-rent value new aircraft [2]. Group 2: Growth Prospects - The company signed its largest aircraft order in history during 1H25, increasing the order book by 132 aircraft year-on-year to 351 aircraft, with a total capital expenditure of approximately $20 billion [2]. - The company maintains a 100% utilization rate for its fleet, with an average aircraft age of 5 years and an average remaining lease term of 7.9 years, ensuring a robust and predictable rental income structure [2]. - The current market value of the operating lease fleet is at a 15% premium to its book value, amounting to approximately $2.8 billion, which supports the company's asset stability and potential performance [2]. Group 3: Financing and Cost Structure - The company's funding cost remained stable at 4.6% year-on-year, with total debt increasing by 2%, benefiting from internal cash flow and low-interest debt refinancing [3]. - A potential easing of overseas monetary policy could lead to a reduction in financing costs, with a projected increase in net profit of approximately $2.5 million for every 10 basis points decrease in financing costs [3]. Group 4: Valuation and Outlook - The company maintains its earnings forecast, currently trading at 1.0x and 0.9x P/B for 25e and 26e, respectively, with a target price of HKD 81.40, indicating a 13% upside potential [3].