Core Viewpoint - BOC Aviation is expected to enter a growth cycle with increasing volume and prices due to improved delivery and interest rate cuts by the US Federal Reserve, which supports steady valuation upside [1]. Company Performance - In 4Q25, BOC Aviation delivered 16 aircraft, marking a 3% increase year-over-year (YoY) and a 5% increase quarter-over-quarter (QoQ). The company committed to purchasing 14 aircraft [2]. - For the full year 2025, BOC Aviation delivered 51 aircraft, a 13% increase YoY, and committed to purchasing 160 aircraft. By the end of 2025, the owned fleet totaled 451 aircraft, a 16% increase YoY, with an order book of 337 aircraft, up 105 YoY [2]. Industry Supply Dynamics - Airbus and Boeing delivered a total of 1,194 aircraft in the first 11 months of 2025, compared to 1,114 for the entire year of 2024. AirInsight Group estimates that combined deliveries may reach 1,752 aircraft in 2026 [3]. - The tight supply-demand market is expected to support high-priced contract execution, while the ample order backlog provides a solid foundation for medium- to long-term business growth [3]. Asset Management - BOC Aviation sold seven self-owned aircraft in 4Q25, a decrease of 1 YoY and 3 QoQ. In 2025, the total sales of self-owned aircraft reached 35, reflecting a 6% increase YoY [4]. - The existing fleet has an average age of 5.0 years and an average remaining lease term of 7.8 years. As of the end of 1H25, the market value of the self-owned fleet had a 15% premium over its book value, indicating potential for asset premium realization [4]. Financial Outlook - The US Federal Reserve's interest rate cuts may lead to a marginal decline in financing costs, with floating-rate liabilities comprising 29% of BOC Aviation's existing liabilities as of 1H25, indicating strong sensitivity to interest rate changes [5]. - The company issued corporate bonds with coupon rates of 4.25% and 4.375% for 5.5-year and 7-year terms, respectively, which are lower than the 4.75% rate for a newly issued 3-year bond in January 2025 [5]. - Earnings forecasts for 2025 and 2026 are largely maintained, with a new forecast for 2027 set at US$931 million. The stock is trading at 1.0x 2026e and 0.9x 2027e P/B, with a target price raised by 8% to HK$87.9, implying 1.1x 2026e and 1.0x 2027e P/B with an 8.8% upside [6].

Core Insights - Air Lease Corporation (AL) provided an update on its aircraft investments, sales, and financing activities for Q3 2025, highlighting a strong fleet growth and sales activity driving top-line growth [1][3] Fleet and Aircraft Investments - As of September 30, 2025, Air Lease's fleet comprised 503 owned aircraft and 50 managed aircraft, with commitments to purchase 228 additional aircraft from Boeing and Airbus scheduled for delivery through 2031 [1][6] - In Q3 2025, AL delivered 13 new aircraft, including two Airbus A220s, two Airbus A321neos, six Boeing 737-8s, and three Boeing 737-9s, and sold five aircraft to third-party buyers [2][6] - Total aircraft investments in Q3 2025 reached $685 million, primarily occurring in the first half of the quarter [2][6] Financial Performance - AL gained $60 million from settlements with insurers regarding claims related to its former Russian fleet [2][6] - The company is expected to report its Q3 2025 earnings on November 3, 2025, after market close [3] Stock Performance - Air Lease currently holds a Zacks Rank 3 (Hold) and has seen its stock price increase by 32.2% year-to-date, outperforming the Zacks Transportation - Equipment and Leasing industry's growth of 13.5% [4]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities with high potential for market outperformance [2][3] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios like P/E and Price/Sales [3] - Growth Score assesses stocks based on future earnings and sales potential [4] - Momentum Score evaluates stocks based on recent price trends and earnings estimate changes [5] - VGM Score combines all three styles to provide a comprehensive rating for stocks [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down their choices [8] Stock Example: Air Lease Corporation - Air Lease Corporation, established in 2010, is a prominent aircraft leasing company that purchases and leases commercial aircraft globally [11] - Currently rated 3 (Hold) with a VGM Score of B, Air Lease has a Momentum Style Score of B and has seen a 2.1% increase in shares over the past four weeks [11][12] - The earnings estimate for fiscal 2025 has been revised upwards, with the Zacks Consensus Estimate increasing by $0.29 to $6.03 per share, and the company has an average earnings surprise of +11.8% [12]

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].

Company Overview - Air Lease Corporation (ALC) operates as a \$50+ billion aircraft leasing platform [9, 11] - The company's fleet has a young average age of 46 years [10] - ALC boasts a high aircraft utilization rate of 1000% in 3Q 2024 [10] Financial Highlights - ALC has \$32 billion in total assets [10] - The company has \$30 billion in committed rentals [10] - ALC maintains a strong liquidity position of \$75 billion [10] - The adjusted pre-tax return on common equity is 101% [10] Order Book and Deliveries - ALC has commitments to purchase 287 aircraft from Boeing and Airbus for delivery through 2029, with an estimated aggregate commitment of \$182 billion [11, 63, 68] - The company has placed 95% of its committed orderbook on long-term leases for aircraft delivering through the end of 2026 [11, 63, 68] - ALC expects to deliver 130 aircraft through 2026, of which 100% are placed [11, 63, 68]