Air China (0753) AI Stock Analysis

• Market Cap: £134.65B
• Dividend Yield: N/A
• Average Volume (3M): 24.27M
• Price to Earnings (P/E): 132.5
• Beta (1Y): 0.96
• Revenue Growth: 4.08%
• EPS Growth: N/A
• Country: HK
• Employees: 104,909
• Sector: Services
• Sector Strength: N/A
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.02
• Shares Outstanding: 4,562,683,600
• 10 Day Avg. Volume: 27,608,526
• 30 Day Avg. Volume: 24,272,123
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £6.10
• Price Target Upside: 9.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: HK$5.00 ▼(-9.91% Downside)

Air China's overall stock score is primarily impacted by its financial performance, which is hindered by persistent net losses and high leverage. Technical analysis provides a neutral outlook, while valuation metrics are unfavorable due to a negative P/E ratio and lack of dividend yield. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Negative Factors

Air China Business Overview & Revenue Model

Company Description

Air China Limited, together with its subsidiaries, provides air passenger, air cargo, and airline-related services in Mainland China, Hong Kong, Macau, Taiwan, Europe, North America, Japan, Korea, the Asia Pacific, and internationally. The company operates through Airline Operations and Other Operations segments. It provides aircraft engineering and airport ground handling services. The company is also involved in the import and export trading activities; and provision of cabin, airline catering, air ticketing, human resources, aircraft overhaul and maintenance, and financial services. As of December 31, 2021, it owned and operated 746 passenger aircraft, including business jets. The company was founded in 1988 and is based in Beijing, the People's Republic of China. Air China Limited is a subsidiary of China National Aviation Holding Corporation Limited.

How the Company Makes Money

Air China generates revenue primarily through its passenger and cargo transportation services. The company's key revenue streams include ticket sales for domestic and international flights, fees for excess baggage, and in-flight sales such as food and duty-free products. Cargo services also contribute significantly to its earnings, with revenues derived from the transportation of goods and freight services. Additionally, Air China benefits from strategic partnerships and alliances, such as its membership in the Star Alliance network, which expands its code-sharing and customer reach. Ancillary services, including aircraft maintenance and ground services, also provide supplementary income streams, adding to the overall financial performance of the company.

Air China Financial Statement Overview

Summary

Air China's financial performance exhibits mixed signals. While revenue growth is evident, profitability remains elusive with ongoing net losses. The high leverage on the balance sheet poses financial risk, though some improvement in equity ratio is noted. Cash flow challenges persist, especially with negative free cash flow, underscoring the need for strategic financial management to enhance liquidity and reduce debt levels. Overall, the financials suggest caution due to operational inefficiencies and financial risks.

Income Statement

Air China has experienced fluctuating revenue with a notable increase in recent years, yet it remains plagued by persistent net losses and negative EBIT margins, indicating operational challenges. The gross profit margin has slightly improved, but the company's inability to achieve net profitability continues to weigh down its financial performance.

Balance Sheet

The balance sheet of Air China shows high leverage with a significant debt-to-equity ratio, reflecting financial risk. However, the company's equity ratio has improved over time, suggesting a strengthening of the equity base relative to its assets. The ongoing liabilities and debt levels remain a concern for long-term stability.

Cash Flow

Air China's cash flow statement highlights inconsistent cash generation, with significant variations in free cash flow growth rates. Operating cash flow has been positive recently, but free cash flow remains negative due to high capital expenditures, indicating potential liquidity constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	167.94B	166.70B	141.10B	52.90B	74.53B	69.50B
Gross Profit	8.87B	8.51B	7.09B	-29.91B	-11.31B	-6.13B
EBITDA	4.92B	33.90B	32.40B	-18.16B	4.61B	7.05B
Net Income	739.51M	-237.31M	-1.05B	-45.18B	-18.83B	-15.82B
Balance Sheet
Total Assets	347.56B	345.77B	335.30B	295.01B	298.42B	284.07B
Cash, Cash Equivalents and Short-Term Investments	28.08B	22.51B	15.63B	11.44B	16.71B	6.58B
Total Debt	171.91B	162.86B	175.39B	214.18B	182.87B	159.63B
Total Liabilities	309.31B	304.82B	300.01B	273.45B	232.55B	200.26B
Stockholders Equity	42.64B	45.15B	37.23B	23.61B	61.40B	77.58B
Cash Flow
Free Cash Flow	792.75M	14.44B	12.65B	-24.40B	6.81B	-10.63B
Operating Cash Flow	17.83B	34.55B	35.42B	-16.76B	12.89B	1.41B
Investing Cash Flow	-17.02B	-17.86B	-15.25B	-6.87B	-4.45B	-15.87B
Financing Cash Flow	-12.22B	-10.56B	-15.85B	18.10B	1.71B	11.46B

Air China Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0753, the sentiment is Positive. The current price of 5.55 is above the 20-day moving average (MA) of 5.30, above the 50-day MA of 5.37, and above the 200-day MA of 5.19, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.61 is Neutral, neither overbought nor oversold. The STOCH value of 63.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0753.

Air China Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0293	66 Neutral	HK$70.57B	6.88	18.83%	6.53%	8.54%	16.57%
1055	54 Neutral	HK$106.83B	-29.32	-4.88%	―	1.42%	―
0670	50 Neutral	HK$91.89B	-21.95	-10.43%	―	4.61%	38.36%
0753	45 Neutral	£134.65B	132.46	1.75%	―	4.08%	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Air China Corporate Events

Air China Announces Book Closure for Upcoming EGM

Air China Limited has announced the closure of its H shares register from September 25 to September 30, 2025, in preparation for an extraordinary general meeting (EGM) scheduled for September 30, 2025. This announcement is significant for shareholders, as it outlines the necessary steps for them to participate and vote in the EGM, potentially impacting the company’s governance and future strategic decisions.

The most recent analyst rating on (HK:0753) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on Air China stock, see the HK:0753 Stock Forecast page.

Air China Proposes Equity Financing for Shenzhen Airlines

Air China Limited announced a proposed equity financing plan for its non-wholly owned subsidiary, Shenzhen Airlines, amounting to RMB16 billion. This financing aims to strengthen Shenzhen Airlines’ capital base, improve its debt structure, and enhance its market competitiveness. Air China will maintain its 51% stake in Shenzhen Airlines, ensuring no change in its consolidated financial statements. The financing will support Shenzhen Airlines in fleet renewal and expansion, leveraging regional policy advantages to bolster its position as an international aviation hub.

The most recent analyst rating on (HK:0753) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on Air China stock, see the HK:0753 Stock Forecast page.

Air China Announces RMB91 Million Impairment Provision for H1 2025

Air China Limited announced a provision for impairment totaling RMB91 million for the first half of 2025, following an assessment of expected credit losses and impairment tests on assets. This move, in line with accounting standards, reflects a fair view of the company’s financial position, with a notable increase in loss before taxation by RMB87 million, indicating a strategic adjustment to accurately represent asset conditions.

The most recent analyst rating on (HK:0753) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on Air China stock, see the HK:0753 Stock Forecast page.

Air China Reports First Half 2025 Financial Results Amidst Ongoing Challenges

Air China reported its unaudited interim results for the first half of 2025, revealing a slight increase in revenue to RMB 80.76 billion compared to the previous year. Despite the revenue growth, the company experienced a loss of RMB 2.71 billion, attributed to high operating expenses, including jet fuel and employee compensation costs. The results indicate ongoing financial challenges for Air China, impacting its profitability and potentially affecting stakeholders.

The most recent analyst rating on (HK:0753) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on Air China stock, see the HK:0753 Stock Forecast page.

Air China Reports Growth in Passenger and Cargo Operations for July 2025

Air China Limited reported a year-on-year increase in passenger traffic and capacity for July 2025, with notable growth in international routes while domestic and regional routes saw slight declines. The company also expanded its cargo operations, introducing new aircraft to its fleet, which now totals 935, and saw improvements in cargo load factors, indicating a strategic focus on enhancing both passenger and cargo services.

The most recent analyst rating on (HK:0753) stock is a Buy with a HK$5.90 price target. To see the full list of analyst forecasts on Air China stock, see the HK:0753 Stock Forecast page.

Air China Announces Board Meeting to Review Interim Results

Air China Limited has announced that its board of directors will meet on August 28, 2025, to review and approve the interim financial results for the first half of the year ending June 30, 2025. This meeting is crucial as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0753) stock is a Buy with a HK$5.90 price target. To see the full list of analyst forecasts on Air China stock, see the HK:0753 Stock Forecast page.

Air China Announces Changes in Company Secretary and Agent Roles

Air China Limited has announced that Mr. Xiao Feng, the current joint company secretary, has been admitted as a fellow of two prestigious governance institutes, meeting the professional qualifications required under the Hong Kong Listing Rules. Consequently, Mr. Huen Ho Yin has resigned as joint company secretary, effective August 1, 2025, with Mr. Xiao continuing as the sole company secretary. Additionally, Mr. Leung Yik Fung will replace Mr. Huen as the agent for accepting service of process and notices in Hong Kong, also effective August 1, 2025. These changes reflect the company’s commitment to maintaining high governance standards and ensuring compliance with regulatory requirements.

The most recent analyst rating on (HK:0753) stock is a Hold with a HK$5.10 price target. To see the full list of analyst forecasts on Air China stock, see the HK:0753 Stock Forecast page.