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China Eastern Airlines Corporation Limited Class H (HK:0670)
:0670
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China Eastern Airlines Corporation Limited Class H (0670) AI Stock Analysis

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HK:0670

China Eastern Airlines Corporation Limited Class H

(0670)

Rating:48Neutral
Price Target:
HK$3.00
▲(3.45% Upside)
The overall stock score is primarily impacted by the company's financial performance, which is challenged by high leverage and negative profit margins. Technical analysis suggests a bearish trend with potential for a short-term rebound. Valuation is weak due to negative earnings and lack of dividends, further weighing down the score.
Positive Factors
International flights
China Eastern Airlines is in a solid position to benefit from the resumption of international flights due to its strong presence in the Shanghai hub.
Operating margins
Operating margins bolstered by declining jet fuel prices and softer USD; lift earnings estimates by 26%-42%.
Travel demand
Encouraging Labour Day travel trends point to strengthening demand and a more optimistic near-term outlook.
Negative Factors
Macroeconomic headwinds
Macroeconomic headwinds and diversion to high-speed rail could curtail the recovery in passenger traffic and keep a lid on yields.
Pandemic impact
Share dilution during the pandemic for CEA suggests a longer path to returning to 2019 earnings per share levels.
Pricing challenges
Ongoing pricing challenges and macroeconomic uncertainties limit further upside for the stock.

China Eastern Airlines Corporation Limited Class H (0670) vs. iShares MSCI Hong Kong ETF (EWH)

China Eastern Airlines Corporation Limited Class H Business Overview & Revenue Model

Company DescriptionChina Eastern Airlines Corporation Limited, together with its subsidiaries, operates in the civil aviation industry in the People's Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company offers passenger, cargo, mail delivery, ground, tour operations, air catering, and other miscellaneous services. It is also involved in flight training; airline maintenance; the provision of import and export, investment, leasing, and consultation services; the research and development of technology and products in the field of aviation; and e-commerce platform and ticket agent services. As of December 31, 2021, the company operated a fleet of 758 aircraft, including 752 passenger aircraft and 6 business aircraft. China Eastern Airlines Corporation Limited was founded in 1988 and is headquartered in Shanghai, the People's Republic of China.
How the Company Makes MoneyChina Eastern Airlines generates revenue primarily through its passenger and cargo air transport services. The majority of its income is derived from ticket sales for domestic and international flights, providing travel services to both individuals and businesses. Additionally, the company earns from air cargo services, transporting goods across its extensive route network. Ancillary services such as baggage fees, in-flight sales, and loyalty programs also contribute to the company's earnings. Strategic partnerships and code-sharing agreements with other airlines, facilitated by its membership in the SkyTeam alliance, enhance route options and customer reach, further driving revenue. The airline also benefits from relationships with travel agencies and corporate travel contracts, adding to its revenue streams.

China Eastern Airlines Corporation Limited Class H Financial Statement Overview

Summary
China Eastern Airlines faces significant financial challenges with high debt levels and ongoing losses negatively affecting profitability and equity. While there are marginal improvements in revenue and cash flow, the company remains highly leveraged with negative profit margins.
Income Statement
35
Negative
The revenue of China Eastern Airlines has shown some recovery with a slight increase in TTM compared to the previous year, but the growth rate remains modest. Gross profit margin has improved over the years but is still low, indicating high costs. Net profit and EBIT margins are negative, reflecting ongoing losses. The company faces challenges in achieving profitability, impacting its income statement score negatively.
Balance Sheet
45
Neutral
The balance sheet shows a high level of debt with a debt-to-equity ratio suggesting significant leverage. Despite a substantial amount of total assets, stockholders' equity is low, contributing to a low equity ratio. The return on equity is negative due to continued losses, indicating poor returns for shareholders. Overall, the financial stability is concerning due to high leverage and low equity.
Cash Flow
50
Neutral
The cash flow statement indicates an improvement in free cash flow in the TTM period, but it remains a concern due to historical negative trends. Operating cash flow has been positive, showing some operational efficiency, but the free cash flow to net income ratio is not favorable due to persistent net losses. The company needs better cash management to sustain operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue132.12B113.74B46.11B66.89B58.47B
Gross Profit5.62B1.28B-28.49B-14.94B-14.05B
EBITDA24.27B18.75B-16.19B7.51B10.41B
Net Income-4.23B-8.17B-37.39B-13.28B-12.56B
Balance Sheet
Total Assets276.60B282.49B285.74B288.79B284.65B
Cash, Cash Equivalents and Short-Term Investments4.23B12.12B17.63B13.03B7.75B
Total Debt145.18B162.39B219.93B194.79B184.15B
Total Liabilities235.19B241.27B255.64B231.64B225.50B
Stockholders Equity40.53B40.71B29.08B53.62B56.25B
Cash Flow
Free Cash Flow20.98B7.91B-16.49B-5.12B-6.04B
Operating Cash Flow37.31B26.57B-6.47B5.69B1.21B
Investing Cash Flow-11.18B-16.07B-7.29B2.15B-6.28B
Financing Cash Flow-33.93B-16.79B18.35B-2.53B11.43B

China Eastern Airlines Corporation Limited Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.90
Price Trends
50DMA
2.98
Negative
100DMA
2.77
Positive
200DMA
2.62
Positive
Market Momentum
MACD
-0.03
Positive
RSI
48.52
Neutral
STOCH
43.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0670, the sentiment is Positive. The current price of 2.9 is below the 20-day moving average (MA) of 2.90, below the 50-day MA of 2.98, and above the 200-day MA of 2.62, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 48.52 is Neutral, neither overbought nor oversold. The STOCH value of 43.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0670.

China Eastern Airlines Corporation Limited Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
AU$1.62B9.942.84%3.53%9.79%5.94%
48
Neutral
HK$86.28B-9.88%14.25%
£12.03B-1.68%
$6.50B7.0415.25%4.89%
$8.55B7.6617.73%5.85%
$3.98B11.515.29%34.71%
43
Neutral
HK$101.25B-4.92%7.08%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0670
China Eastern Airlines Corporation Limited Class H
2.90
0.86
42.16%
GB:AIRC
Air China
91.25
0.00
0.00%
BCVVF
BOC Aviation
9.36
1.02
12.23%
CPCAF
Cathay Pacific Airways
1.51
0.59
64.13%
NWSZF
NWS Holdings
0.83
0.02
2.47%
HK:1055
China Southern Airlines Company Limited Class H
3.66
0.80
27.97%

China Eastern Airlines Corporation Limited Class H Corporate Events

China Eastern Airlines Announces Key Resolutions for 2025 EGM
Jul 31, 2025

China Eastern Airlines has announced its 2025 second extraordinary general meeting to discuss and approve several key resolutions. These resolutions include amendments to the company’s Articles of Association and rules for general and board meetings, the cancellation of the Supervisory Committee, and adjustments to daily connected transactions related to aircraft and engines. The meeting will also address resolutions concerning financial services, commercial factoring, and other operational services for 2026-2028, reflecting the company’s strategic focus on streamlining operations and enhancing service offerings.

The most recent analyst rating on (HK:0670) stock is a Hold with a HK$2.30 price target. To see the full list of analyst forecasts on China Eastern Airlines Corporation Limited Class H stock, see the HK:0670 Stock Forecast page.

China Eastern Airlines Expands Operations and Fleet in June 2025
Jul 15, 2025

In June 2025, China Eastern Airlines reported a significant increase in its operational metrics, with passenger transportation capacity rising by 6.54% and passenger traffic volume by 9.99% year-on-year. The airline also saw a 12.74% increase in freight traffic volume. The company expanded its domestic and international routes, including new routes to Milan, Geneva, and Istanbul, and increased frequencies on existing routes. Additionally, the fleet was bolstered with the introduction of four new aircraft, bringing the total to 816, which includes a mix of wide-body, narrow-body, and regional passenger aircraft. These developments indicate a strategic focus on growth and enhanced service offerings, potentially strengthening the company’s market position and operational capabilities.

The most recent analyst rating on (HK:0670) stock is a Hold with a HK$2.30 price target. To see the full list of analyst forecasts on China Eastern Airlines Corporation Limited Class H stock, see the HK:0670 Stock Forecast page.

China Eastern Airlines Projects Reduced Losses for First Half of 2025
Jul 14, 2025

China Eastern Airlines has announced an estimated net loss of RMB1.2 billion to RMB1.6 billion for the first half of 2025, marking a significant reduction from the RMB2.841 billion loss in the same period last year. Despite improvements in operating profits due to strategic expansions and service enhancements, the company continues to face challenges from intense domestic competition and a volatile international market, which are expected to result in continued losses.

The most recent analyst rating on (HK:0670) stock is a Hold with a HK$2.30 price target. To see the full list of analyst forecasts on China Eastern Airlines Corporation Limited Class H stock, see the HK:0670 Stock Forecast page.

China Eastern Airlines Revises Lease Agreement and Renews Key Service Contracts
Jul 4, 2025

China Eastern Airlines has announced a revision of its existing aircraft and engines lease agreement, alongside the renewal of several key service agreements, including financial services, catering, and logistics, with proposed annual caps set through 2028. These strategic moves are aimed at strengthening the company’s operational framework and ensuring compliance with Hong Kong and Shanghai listing rules, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (HK:0670) stock is a Hold with a HK$2.30 price target. To see the full list of analyst forecasts on China Eastern Airlines Corporation Limited Class H stock, see the HK:0670 Stock Forecast page.

China Eastern Airlines Proposes Amendments to Enhance Operational Standards
Jul 1, 2025

China Eastern Airlines Corporation Limited has announced proposed amendments to its Articles of Association, the Rules for Procedures for General Meetings, and the Rules for Meetings of the Board of Directors. These changes aim to enhance the company’s standard operations in line with the latest regulatory requirements and are subject to approval at the upcoming shareholders’ general meeting. The amendments reflect the company’s commitment to maintaining compliance with the Company Law of the People’s Republic of China and other relevant regulations, potentially impacting its governance and operational efficiency.

The most recent analyst rating on (HK:0670) stock is a Hold with a HK$2.30 price target. To see the full list of analyst forecasts on China Eastern Airlines Corporation Limited Class H stock, see the HK:0670 Stock Forecast page.

China Eastern Airlines Appoints New Vice President
Jun 23, 2025

China Eastern Airlines has announced the appointment of Li Zhiyong as the new Vice President, effective from the 5th board meeting in 2025. Mr. Li brings extensive experience in the civil aviation industry, having held various senior positions within the company and its holding entity. This strategic appointment is expected to strengthen the company’s leadership team, potentially impacting its operational efficiency and market positioning.

The most recent analyst rating on (HK:0670) stock is a Hold with a HK$2.30 price target. To see the full list of analyst forecasts on China Eastern Airlines Corporation Limited Class H stock, see the HK:0670 Stock Forecast page.

China Eastern Airlines Sells Stake in New Shanghai International
Jun 18, 2025

China Eastern Airlines Corporation Limited has announced the disposal of its 20% equity interest in New Shanghai International to CEA Asset for RMB286,437,800. This move is part of the company’s strategy to focus on its principal businesses and enhance operational efficiency. The transaction is classified as a connected transaction under the Hong Kong Listing Rules due to CEA Asset being a wholly-owned subsidiary of the company’s controlling shareholder, CEA Holding. The transaction is subject to reporting and announcement requirements but is exempt from independent shareholder approval.

The most recent analyst rating on (HK:0670) stock is a Hold with a HK$2.30 price target. To see the full list of analyst forecasts on China Eastern Airlines Corporation Limited Class H stock, see the HK:0670 Stock Forecast page.

China Eastern Airlines Reports Growth in Passenger Traffic and Fleet Expansion
Jun 16, 2025

In May 2025, China Eastern Airlines reported a significant increase in its passenger transportation capacity and traffic volume, with a notable rise in passenger load factor. The company expanded its domestic and international routes and introduced four new aircraft while retiring four others, maintaining a total fleet of 814 aircraft. These operational enhancements are likely to strengthen its market position and improve service offerings.

The most recent analyst rating on (HK:0670) stock is a Hold with a HK$2.30 price target. To see the full list of analyst forecasts on China Eastern Airlines Corporation Limited Class H stock, see the HK:0670 Stock Forecast page.

China Eastern Airlines Appoints New Employee Representative Director
May 30, 2025

China Eastern Airlines has announced the election of Mr. Jie Xiaoqing as the employee representative director for the tenth session of its board of directors, effective from May 30, 2025. Mr. Jie brings extensive experience in the aviation industry, having held various leadership roles within the company and its subsidiaries. His appointment is expected to strengthen the board’s representation of employee interests and contribute to strategic decision-making, potentially impacting the company’s operational and organizational dynamics.

The most recent analyst rating on (HK:0670) stock is a Hold with a HK$2.30 price target. To see the full list of analyst forecasts on China Eastern Airlines Corporation Limited Class H stock, see the HK:0670 Stock Forecast page.

China Eastern Airlines Announces Board Composition and Committee Roles
May 30, 2025

China Eastern Airlines Corporation Limited has announced the composition of its board of directors and the roles and functions of its board committees. The announcement details the leadership structure, highlighting the chairpersons and members of the Audit and Risk Management, Nomination and Remuneration, Planning, Development and Digitalization, and Aviation Safety and Environment Committees. This organizational update is crucial for stakeholders as it outlines the governance framework and strategic oversight within the company, potentially impacting its operational efficiency and industry positioning.

The most recent analyst rating on (HK:0670) stock is a Hold with a HK$2.30 price target. To see the full list of analyst forecasts on China Eastern Airlines Corporation Limited Class H stock, see the HK:0670 Stock Forecast page.

China Eastern Airlines Successfully Concludes 2024 AGM with Key Resolutions Passed
May 28, 2025

China Eastern Airlines Corporation Limited held its 2024 Annual General Meeting (AGM) on May 28, 2025, in Shanghai, where all proposed resolutions were successfully passed. The meeting saw participation from shareholders representing approximately 69.74% of the company’s share capital, with voting conducted both on-site and online. Key resolutions included approval of the 2024 financial reports, profit distribution proposal, and the appointment of auditors for 2025. Additionally, a special resolution was passed granting the board of directors a mandate to issue bonds, enhancing the company’s financial flexibility.

The most recent analyst rating on (HK:0670) stock is a Hold with a HK$2.30 price target. To see the full list of analyst forecasts on China Eastern Airlines Corporation Limited Class H stock, see the HK:0670 Stock Forecast page.

China Eastern Airlines Expands Operations and Optimizes Fleet in April 2025
May 15, 2025

In April 2025, China Eastern Airlines reported a significant increase in its passenger transportation capacity and traffic volume, with a notable rise in passenger load factor. The airline also expanded its domestic and international routes, introducing new routes and resuming previously suspended ones. Additionally, the company made adjustments to its fleet by introducing one new A320 series aircraft and retiring three older aircraft. These developments reflect the company’s strategic efforts to enhance its operational efficiency and market presence, potentially benefiting stakeholders through improved service offerings and increased market reach.

The most recent analyst rating on (HK:0670) stock is a Buy with a HK$2.70 price target. To see the full list of analyst forecasts on China Eastern Airlines Corporation Limited Class H stock, see the HK:0670 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2025