Core Viewpoint - BOC Aviation (BOCA) demonstrated steady business growth in 2Q25, signing 18 lease commitments and delivering 13 aircraft, indicating resilience in the global airline industry despite uncertainties related to US tariffs [1][2]. Business Performance - BOCA reported 18 lease commitments in 2Q25, an increase from 16 in 1Q25 but a decrease from 24 in 2Q24 [2]. - The company delivered 13 aircraft in 2Q25, compared to 11 in 1Q25 and 13 in 2Q24 [2]. - The customer base consisted of 92 airlines across 45 countries and regions in 2Q25, down from 93 airlines in 48 countries in 1Q25 [2]. Fleet and Utilization - Owned aircraft utilization reached 100% at the end of June 2025, consistent with 100% at the end of March 2025 and an increase from 99% at the end of December 2024 [3]. - The average fleet age was reported at 5.0 years in 2Q25, slightly improved from 5.1 years in 1Q25, with an average remaining lease term of 7.9 years [3]. Industry Outlook - The global airline industry is expected to continue improving in 2H25, which is anticipated to positively impact BOCA's operations [1]. - BOCA is projected to report positive earnings growth in 2025, supported by steady growth in the global airline industry [1][4]. Valuation - BOCA is positioned as a geared beneficiary of the steady growth in the global airline industry, with a solid business model and an expected dividend yield of approximately 3.7% in 2025 [4]. - The target price for BOCA is maintained at HK$83.84, based on a 1.1x 2025E P/B ratio [4].