Core Viewpoint - China Aircraft Leasing Group Holdings Limited (中银航空租赁) reported its operational performance for the third quarter ending September 30, 2025, highlighting a robust portfolio and significant transactions during the period [1] Group 1: Operational Performance - The company has a total portfolio of 812 owned, managed, and ordered aircraft and engines [1] - The average age of the 442 owned aircraft is 5.0 years, with an average remaining lease term of 7.8 years [1] - The managed fleet now includes 17 aircraft, following the cessation of service for 15 aircraft [1] - The order book consists of 343 aircraft, and the customer base spans 88 airlines across 46 countries and regions [1] - The utilization rate of owned aircraft remains at 100% [1] Group 2: Transactions and Financials - In the third quarter of 2025, the company executed 34 transactions, which included commitments to purchase 3 aircraft, delivery of 11 aircraft, and sale of 10 owned aircraft [1] - The company signed 10 lease commitments and issued a $500 million bond with a 5.5-year term at an annual coupon rate of 4.25%, which is 58 basis points above the 5-year U.S. Treasury yield, marking a record low for the company's bond spread [1]

Core Viewpoint - Bank of China Aviation Leasing (02588) announced a mid-term dividend of HKD 1.1483 per share for the six months ending June 30, 2025, to be distributed on October 13, 2025 [1] Summary by Category - **Company Announcement** - The company will distribute a mid-term dividend of HKD 1.1483 per share [1] - The dividend pertains to the period ending June 30, 2025 [1] - The payment date for the dividend is set for October 13, 2025 [1]

Group 1 - Sichuan Development (Holding) Company established a joint venture, Guoxiang International Aircraft Leasing Co., Ltd., with Standard Chartered Bank in Ireland, aiming to invest $500 million in the international aviation leasing industry [3] - The joint venture focuses on leveraging the strengths of its shareholders to accelerate entry into the high-end aviation finance sector, with a goal to lead and gather global aviation and financial resources [3] - Sichuan Road and Bridge Group won the first public-private partnership (PPP) highway project in Bangladesh, marking a significant milestone in the country's infrastructure development [5] Group 2 - The second phase of the Diamniadio International Industrial Park in Senegal, constructed by Sichuan Road and Bridge, is a key project under the Belt and Road Initiative and Senegal's national development strategy [8] - Sichuan Investment International is developing the Maxiangdi Hydropower Station project in Nepal, with a total installed capacity of approximately 601 MW and an investment of about $1.2 billion [10] - The project is the largest power investment by Chinese enterprises in Nepal and is prioritized in the China-Nepal hydropower planning white paper [10] Group 3 - The East Hospital project in Nairobi, Kenya, is being constructed by Huaxi Group and features a 14-story building with a total area of 7,800 square meters [12] - Huaxi Group is also involved in the construction of public buildings in Kuwait, which will include schools and convenience stores, covering an area of 126,000 square meters [14] - Sichuan Coal Industry Group is undertaking a decoration and installation project in Ethiopia's Bale Mountains National Park, which has been recognized as a UNESCO World Heritage site [17] Group 4 - Sichuan Geological and Mineral Group is supervising the exploration and development of a 2 million tons per year potassium chloride project in Laos, ensuring compliance with regulations and quality control [19] - The mineral exploration team from Sichuan Natural Resources Investment Group is actively engaged in metal mineral exploration in Zimbabwe and Mozambique, contributing to resource security for China [21] - The efforts of Sichuan state-owned enterprises abroad are recognized as vital for promoting Chinese culture and strengthening international friendships [21]

Group 1 - Air Lease is being acquired by a consortium of investment firms including Sumitomo Group, Apollo Global Management, and Brookfield Asset Management for $7.4 billion [1] - The acquisition price per share is set at $65, with a total equity value of approximately $7.4 billion, and an enterprise value of about $28.2 billion including debt [1] - Post-acquisition, Air Lease will be renamed Sumisho Air Lease and will merge with SMBC Aviation Capital, aiming to scale up to compete closely with industry leader AerCap [1]

Market Movements - As of September 3, U.S. stock index futures showed mixed results with Dow futures down 0.05%, S&P 500 futures up 0.39%, and Nasdaq futures up 0.62% [1] - European indices also saw positive movements, with Germany's DAX up 0.64%, UK's FTSE 100 up 0.52%, France's CAC 40 up 0.90%, and the Euro Stoxx 50 up 0.82% [2][3] - WTI crude oil prices fell by 1.91% to $64.34 per barrel, while Brent crude oil dropped by 1.69% to $67.97 per barrel [4] Market News - Federated Hermes expressed optimism about U.S. equities, citing strong corporate earnings and economic outlook, suggesting that recent market pullbacks present buying opportunities [5] - Deutsche Bank's CEO indicated that the global bond sell-off is not just a temporary fluctuation, predicting that yields will remain high due to political uncertainties and rising debt levels [5] Volatility and Gold Market - The VIX index surged over 11%, indicating increased market volatility as traders prepare for significant fluctuations following the Labor Day holiday and upcoming non-farm payroll data [6] - UBS analysts suggested that gold prices could reach $4,000 per ounce, driven by geopolitical uncertainties and potential interest rate declines, with current prices hovering above $3,500 [6] Company-Specific News - Google (GOOGL.US) received a favorable ruling in its online search monopoly case, allowing it to retain its Chrome browser and Android system without divestiture, while being required to share some search index data with competitors [7] - Apple (AAPL.US) is expected to launch foldable iPhones and iPads starting in 2026, with projected shipments significantly increased to 8-10 million units in 2026 and 20-25 million units in 2027 [8][9] - Nvidia (NVDA.US) denied rumors of a shortage of its H100 and H200 AI chips, asserting that supply is sufficient to meet demand [9] - Macy's (M.US) reported Q2 sales of $4.81 billion, exceeding expectations, and raised its full-year guidance for sales and earnings [9] - Kraft Heinz (KHC.US) faced backlash from major shareholder Warren Buffett over its business split plan, leading to Moody's placing the company on review for a potential downgrade [10] - Air Lease (AL.US) agreed to be acquired for $7.4 billion, indicating a trend of consolidation in the aircraft leasing industry [10]

Core Viewpoint - 中银航空租赁的1H25业绩符合预期，显示出强劲的业绩释放能力和市场需求的增长 [1][3] Financial Performance - 1H25 total revenue reached 1.24 billion USD, a year-on-year increase of 6% [1] - Taxed net profit was 342 million USD, a 20% increase compared to core net profit in 1H24 [1] - The interim dividend was set at 0.1476 USD, corresponding to a dividend payout ratio of 30% [1] Asset Side - The order book expanded significantly, with expected deliveries in 2025 projected to increase by 26% year-on-year [2] - As of the end of 1H25, the fleet size was 834 aircraft, with a 100% utilization rate for owned aircraft [2] - The average age of the fleet was 5.0 years, significantly younger than the global average of 15 years [2] - The company sold 18 owned aircraft and signed 43 new leasing commitments in 1H25 [2] - New aircraft deliveries in 1H25 totaled 24, accounting for 63% of the total expected deliveries for 2024 [2] Revenue Side - Demand in the Asia-Pacific region is leading, with a strong performance in both volume and pricing [3] - The market value of the fleet increased by 15% compared to book value, driving up leasing yields [3] - Net leasing yield rose to 7.5% in 1H25, compared to 7.0% in 1H24 [3] - The Asia-Pacific region accounted for 37.2% of the company's aircraft assets and 42.7% of rental income [3] Expenditure Side - The annualized funding cost remained stable at 4.6%, with the company maintaining the lowest spread in the industry [4] - Financial expenses accounted for 44% of total operating expenses, making them a key factor in profitability [4] Investment Analysis - Profit forecasts have been raised, with net profit estimates for 2025-2027 adjusted to 702, 739, and 763 million USD respectively [4] - The company maintains a buy rating based on improved net leasing yields [4]

Core Viewpoint - 中银航空租赁（BOCA）reported a net profit of $342 million for 1H25, a 20% year-on-year increase, aligning with Bloomberg's consensus estimate of $337 million [1] - The aviation leasing industry is experiencing a gradual recovery, with aircraft manufacturers increasing production capacity, leading to a 12% year-on-year rise in total aircraft deliveries [1] Supply and Demand - Total aircraft deliveries in 1H25 increased by 12%, with Boeing's deliveries rebounding by 53%, compensating for a 7% decline in Airbus deliveries due to engine shortages [2] - The global new aircraft delivery value is expected to reach $100 billion in 2025, the highest since 2019, and is projected to exceed $141 billion by 2027 [2] - IATA forecasts a 5.8% growth in global Revenue Passenger Kilometers (RPK) in 2025, supporting airline profitability, which is expected to reach $36 billion, up from $32 billion in 2024 [2] Capital Expenditure and Asset Growth - In the context of supply recovery, the company is actively expanding its fleet and optimizing its asset structure, with 24 aircraft deliveries in 1H25 compared to 18 in 1H24, and capital expenditure reaching $1.9 billion, a 150% year-on-year increase [2] - The company announced its largest aircraft order in March, increasing its total order backlog by over 50% to 351 aircraft, with committed capital expenditure of $20 billion [2] - As of the end of 1H25, the company owned 441 aircraft with an average age of 5 years and maintained a 100% utilization rate, indicating a healthy fleet [2] Profitability Improvement - The rental yield for operating leases increased by 50 basis points to 10.3% in 1H25, while the cost of debt remained stable at 4.6% [3] - The net lease yield (NLY) rose by 50 basis points to 7.5%, primarily due to the sale of older, low-yield aircraft and the introduction of higher-yield new models [3] - The company anticipates that the recovery in upstream capacity will facilitate smoother capital expenditure deployment, with rising rental rates expected to enhance asset yield [3] Earnings Forecast and Valuation - The company adjusted its net profit forecasts for 2025, 2026, and 2027 to $710 million, $800 million, and $830 million, respectively, reflecting increases of 0.7%, 1.1%, and 3.2% [3] - The target price has been raised to HKD 85 from HKD 82, based on a price-to-book ratio of 1.13x for 2025E [3] - The company's stock is currently trading at 0.96x 2025E PB and offers a 3.9% dividend yield, indicating potential investment value [3]

Core Viewpoint - BOC Aviation (BOCA) reported strong financial results for 1H25, with total revenue and other income increasing by 5.8% YoY to US$1,242 million, despite a significant drop in net profit due to the absence of non-recurring income from the previous year [1][2]. Financial Performance - Net profit decreased by 25.8% YoY to US$341.5 million in 1H25, primarily due to the lack of non-recurring income, which included US$175 million of write-backs related to aircraft in Russia in 1H24 [2]. - Excluding the impact of the Russia event, core net profit after tax increased by 20% YoY in 1H25 [2]. - Finance expenses rose by 2.3% YoY, with the cost of debt stabilizing at 4.6% in 1H25, unchanged from 1H24 [2]. - An interim dividend of US$0.1476 per share was declared in 1H25 [2]. Market and Operational Insights - The market values of aircraft exceeded net book value by 15% at the end of June 2025, which is favorable for BOCA's operating leased fleet [3]. - Lease rental yield increased to 10.3% in 1H25 from 9.8% in 1H24, while net lease yield rose to 7.5% from 7.0% in the same period [3]. - Core lease rental income increased by 24% YoY to US$276 million in 1H25 [3]. - Interest income from finance leases surged by 35.6% YoY to US$130.2 million, accounting for 10.5% of total revenues and other income [4]. - Net gain on the sale of aircraft increased by 8% YoY to US$60.3 million in 1H25 [4]. Fleet Utilization and Valuation - Owned aircraft utilization reached 100% at the end of June 2025, consistent with previous quarters [5]. - The average fleet age was reported at 5.0 years, with an average remaining lease term of 7.9 years [5]. - BOCA is positioned as a geared beneficiary of steady growth in the global airline industry, with a projected dividend yield of approximately 3.9% in 2025 [6]. - The target price for BOCA was increased from HK$83.84 to HK$83.9, based on a 1.1x 2025E P/B ratio [6].

Core Viewpoint - Bank of China International reports that China Aircraft Leasing (02588) experienced a 5.8% year-on-year increase in total revenue and other income in the first half of the year, with a 20% growth in after-tax core net profit [1] Financial Performance - The leasing rental yield reached 10.3%, an increase from 9.8% in the same period last year [1] - The net leasing yield rose to 7.5%, up from 7% in the first half of the previous year [1] Business Model and Valuation - The business model of China Aircraft Leasing remains robust, and the dividend yield is considered attractive [1] - As of the end of June, the market value of its aircraft exceeded the book value by 15% [1] - The target price has been raised to HKD 83.9, maintaining a "Buy" rating [1]

Investment Ratings - Kuaishou Technology: HOLD, Target Price (TP) raised to HK$76.00 [5][7] - Bilibili Inc: BUY, TP set at US$28.00 / HK$219.00 [9][10] - ZTO Express: BUY, TP set at US$21.00 [13][14] - AAC Technologies: BUY, TP raised to HK$62.90 [16][17] - China Communications Services: BUY, TP raised to HK$5.15 [19][20] - BOC Aviation: BUY, TP raised to HK$83.90 [22][23] - MINISO Group: BUY, TP set at US$24.80 / HK$48.40 [24][25] Core Insights - Kuaishou Technology reported a 13% YoY topline growth and a historical high adjusted net profit of RMB5.6 billion, exceeding consensus estimates [5][6] - Bilibili Inc achieved a 20% YoY topline growth in 2Q25, with adjusted operating profit surpassing consensus by 16% [9][12] - ZTO Express experienced an 11% YoY growth in core express delivery revenue, although it missed consensus by 1% [13][15] - AAC Technologies reported an 18% YoY revenue increase, with a significant 62% surge in net income, despite some misses on expectations [16][18] - China Communications Services saw a 3.4% YoY revenue increase, with non-telco and international sales growing by 12.6% YoY [19][21] - BOC Aviation's total revenue increased by 5.8% YoY, with a 20% YoY rise in core net profit [22][23] - MINISO Group's revenue grew by 23% YoY, reflecting positive developments in various markets [24][26] Summary by Company Kuaishou Technology - 2Q25 topline growth of 13% YoY and adjusted net profit of RMB5.6 billion, beating consensus by 2% and 11% respectively [5][6] - AI strategies are enhancing monetization and efficiency, despite potential challenges in 2H25 [6][7] Bilibili Inc - 2Q25 revenue growth of 20% YoY met consensus, with adjusted operating profit exceeding expectations [9][12] - Anticipated sustainable profitability growth driven by diversified revenue streams [9][10] ZTO Express - Core express delivery revenue grew 11% YoY, but missed consensus by 1% [13][15] - Adjusted FY2025 parcel volume guidance reflects industry challenges [14] AAC Technologies - Revenue increased 18% YoY to RMB13 billion, with net income surging 62% [16][18] - Management's optimistic outlook for 2H25 suggests potential margin recovery [17] China Communications Services - 1H25 net profit increased by 0.2% YoY, with total revenue up 3.4% YoY [19][21] - Growth in non-telco and international sales indicates strong demand for digital infrastructure [20] BOC Aviation - Total revenue and other income rose 5.8% YoY, with core net profit increasing by 20% [22][23] - Attractive dividend yield and solid business model support investment thesis [22] MINISO Group - 2Q25 revenue growth of 23% YoY, exceeding guidance [24][26] - Positive developments in IP strategy and customer engagement [25]