Company Overview - China Aircraft Leasing (01848) maintains its 25-year profit forecast and introduces a profit estimate of HKD 475 million for 2026, currently trading at 0.79x/0.75x 25e/26e P/B [1] - The company reported a 7% year-on-year increase in profit for the first half of 2025, reaching HKD 140 million, driven by cost improvements and significant contributions from aircraft disposals [1] Revenue Insights - Leasing revenue for the first half of 2025 decreased by 14.1% year-on-year to HKD 1.91 billion, accounting for 79% of total revenue, primarily due to a reduction in fleet size from aircraft disposals [1] - The company plans to deliver 15 new aircraft in the second half of the year while selling 6-10 aircraft, which is expected to support rental income performance [1] - Net income from aircraft transactions surged by 1060.2% year-on-year to HKD 290 million, corresponding to the sale of 19 aircraft, indicating a strong market for aircraft assets [1] Cost Management - The company reduced its interest-bearing debt by 11.0% year-on-year, resulting in a 17.6% decrease in interest expenses to HKD 1.1 billion, with the leverage ratio declining from 9.1x at the end of 2024 to 8.4x [2] - Future strategies will focus on diversifying financing and reducing leverage to optimize debt and capital structure, thereby lowering financing costs [2] Order Book and Client Base - As of the end of the first half of 2025, the company had a fleet of 181 aircraft, with 151 owned and 30 managed, maintaining a leading position in high liquidity narrow-body aircraft [3] - The order book stands at 114 aircraft, providing a solid foundation for future growth amid tightening supply chains [3] - The company is expanding its global customer base while solidifying its leading position in the Chinese market, with 33% of aircraft leased to overseas airlines [3]