Air China Ltd (HK:0753)
:0753
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Air China
(0753)
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Rating:43Neutral
Price Target:
HK$5.00
▲(4.17% Upside)
Action:ReiteratedDate:04/02/26
The score is primarily held down by weak financial quality (continued net losses and high leverage despite improved cash flow) and bearish technicals (price below key moving averages with negative MACD). Valuation is also a drag due to the negative P/E and lack of dividend support.
Positive Factors
Improved cash generation
Sustained positive operating and free cash flow across 2023–2025 provides a durable cushion to fund operations, requisite aircraft/maintenance capex and working capital. Persistent FCF reduces immediate refinancing pressure, enabling strategic reinvestment and support for service of liabilities if trends continue.
Negative Factors
Persistent losses & thin margins
Chronic net losses and near‑zero gross margin constrain the company’s ability to generate retained earnings and rebuild equity. Over time this impairs capacity to self‑fund growth, weakens incentive alignment for investors, and leaves the business vulnerable to margin pressure from fuel, labor or traffic shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Sustained positive operating and free cash flow across 2023–2025 provides a durable cushion to fund operations, requisite aircraft/maintenance capex and working capital. Persistent FCF reduces immediate refinancing pressure, enabling strategic reinvestment and support for service of liabilities if trends continue.
Read all positive factors
Air China (0753) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$121.23B
Dividend YieldN/A
Average Volume (3M)23.95M
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth4.08%
EPS GrowthN/A
CountryHK
Employees104,909
SectorGeneral
Sector StrengthN/A
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-0.22
Shares Outstanding4,562,683,600
10 Day Avg. Volume25,645,394
30 Day Avg. Volume23,954,475
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)2.49
Price to Sales (P/S)0.63
P/FCF Ratio4.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$7.07Price Target Upside47.37% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.13
Revenue Forecast (FY)HK$185.74B
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...
How the Company Makes Money
Air China primarily makes money by selling air transportation services and related offerings. Passenger revenue is generated from ticket sales across domestic and international routes, including economy, premium economy (where offered), and busine...
Air China Financial Statement Overview
Summary
Income Statement
36
Negative
Balance Sheet
28
Negative
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 167.05B | 166.70B | 141.10B | 52.90B | 74.53B |
| Gross Profit | 1.70B | 8.51B | 7.09B | -29.91B | -11.31B |
| EBITDA | 24.98B | 33.90B | 32.40B | -18.16B | 4.61B |
| Net Income | -1.74B | -237.31M | -1.05B | -45.18B | -18.83B |
Balance Sheet | |||||
| Total Assets | 343.16B | 345.77B | 335.30B | 295.01B | 298.42B |
| Cash, Cash Equivalents and Short-Term Investments | 16.02B | 22.51B | 15.63B | 11.44B | 16.71B |
| Total Debt | 232.43B | 226.70B | 175.39B | 214.18B | 182.87B |
| Total Liabilities | 303.95B | 304.82B | 300.01B | 273.45B | 232.55B |
| Stockholders Equity | 42.53B | 45.15B | 37.23B | 23.61B | 61.40B |
Cash Flow | |||||
| Free Cash Flow | 24.48B | 14.44B | 12.65B | -24.40B | 6.81B |
| Operating Cash Flow | 42.05B | 34.55B | 35.42B | -16.76B | 12.89B |
| Investing Cash Flow | -15.08B | -17.86B | -15.25B | -6.87B | -4.45B |
| Financing Cash Flow | -33.65B | -10.56B | -15.85B | 18.10B | 1.71B |
Air China Technical Analysis
Negative
4.80
Price Trends
6.30
Negative
6.49
Negative
6.02
Negative
Market Momentum
-0.46
Negative
34.89
Neutral
47.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0753, the sentiment is Negative. The current price of 4.8 is below the 20-day moving average (MA) of 5.15, below the 50-day MA of 6.30, and below the 200-day MA of 6.02, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 34.89 is Neutral, neither overbought nor oversold. The STOCH value of 47.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0753.
Air China Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$69.39B | 7.51 | 19.38% | 5.38% | 8.54% | 16.57% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | HK$105.69B | 113.91 | -6.44% | ― | 1.42% | 3.33% | |
44 Neutral | HK$101.44B | -43.52 | -7.13% | ― | 4.61% | 38.36% | |
43 Neutral | HK$121.23B | -60.78 | -4.06% | ― | 4.08% | ― |
* General Sector Average
HK:0753
Air China
4.80
0.59
14.01%
HK:0293
Cathay Pacific Airways
11.41
3.27
40.22%
HK:1055
China Southern Airlines Company Limited Class H
4.05
1.07
35.91%
HK:0670
China Eastern Airlines Corporation Limited Class H
3.72
1.55
71.43%
Air China Corporate Events
Air China Updates Board Line-Up and Committee Roles
Mar 30, 2026
Air China Limited has announced the latest composition of its board of directors, detailing the roles of executive, non-executive, employee representative and independent non-executive directors. The board, chaired by executive director Liu Tiexia...
Air China Posts 2025 Loss, Halts Dividend Amid Cost Pressures
Mar 26, 2026
Air China reported 2025 revenue of RMB171.5 billion, up modestly from a year earlier, but swung to a net loss attributable to equity shareholders of RMB1.79 billion as rising employee, maintenance and depreciation costs, goodwill impairment and hi...
Air China Books RMB575 Million in 2025 Asset Impairments to Align Balance Sheet With Recoverable Values
Mar 26, 2026
Air China has approved a resolution to book asset impairments totaling RMB575 million for 2025, following a review by its Audit and Risk Management Committee and board. The move is intended to present a more accurate picture of its financial posit...
Air China Shareholders Back New Director and Major A320NEO Fleet Expansion
Mar 25, 2026
Air China’s shareholders approved all resolutions at an extraordinary general meeting held in Beijing on 25 March 2026, with more than 12.5 billion shares represented and no share classes required to abstain under Hong Kong Listing Rules. Th...
Air China Sets Out Board Line-Up and Committee Roles
Mar 25, 2026
Air China has announced the current composition of its board, led by executive director and chairman Liu Tiexiang and supported by a mix of non-executive, independent non-executive, and an employee representative director. The structure underscore...
Air China Sets March 2026 Board Meeting to Approve 2025 Results and Consider Dividend
Mar 16, 2026
Air China has scheduled a board meeting for 26 March 2026 to review and approve the annual results for the financial year ended 31 December 2025. The board will also consider whether to recommend a final dividend, signaling potential decisions on ...
Air China Posts Strong February Traffic Growth and Higher Load Factors
Mar 16, 2026
Air China reported robust traffic growth for February 2026, with group passenger capacity up 13.8% year on year and passenger traffic rising 19.1%, driven by particularly strong gains on international and regional routes. The overall passenger loa...
Air China Wins CSRC Nod for Targeted A-Share Issuance
Mar 9, 2026
Air China has received regulatory approval from the China Securities Regulatory Commission to register an issuance of A shares to specific investors, clearing a key procedural hurdle for its planned equity raising. The approval, which is valid for...
Air China Calls March 2026 EGM to Approve New Director and Major Fleet Expansion
Mar 9, 2026
Air China has called an extraordinary shareholders’ meeting in Beijing on 25 March 2026 to vote on the election of Qu Guangji as an executive director, signaling a planned adjustment to its senior leadership team. Shareholders will also cons...
Air China Sets Out Board Composition and Committee Roles
Mar 5, 2026
Air China Limited has announced the current composition of its board of directors, led by executive director and chairman Liu Tiexiang, alongside non-executive, employee representative, and independent non-executive directors. The company also det...
Air China Names New President as Long-Serving Executive Retires
Mar 5, 2026
Air China announced that President, Vice Chairman and executive director Wang Mingyuan has retired, stepping down from all his board and aviation safety committee roles with immediate effect, with the board noting there are no outstanding disputes...
Air China Posts Higher January Load Factors as It Tweaks Fleet and Route Network
Feb 13, 2026
Air China reported that in January 2026 its overall passenger traffic rose year on year despite a slight 0.9% decline in capacity, with revenue passenger kilometers up 3.0% and the passenger load factor improving to 82.2%. Domestic, international ...
Air China Wins Shanghai Exchange Nod for Targeted A-Share Issue, Awaits CSRC Approval
Feb 9, 2026
Air China said the Shanghai Stock Exchange has completed its review of the airline’s proposed private placement of A shares to specific investors, concluding that the application meets issuance, listing and disclosure requirements. The plann...
Air China Warns of Continued 2025 Loss Despite Operational Improvements
Jan 30, 2026
Air China has issued a profit warning for the 2025 financial year, indicating it expects to post a net loss attributable to equity holders of about RMB1.3 billion to RMB1.9 billion, and a deeper loss of RMB1.9 billion to RMB2.7 billion after exclu...
Air China Posts Strong December Traffic Gains and Expands Fleet With New C919 Jets
Jan 15, 2026
Air China reported stronger operating metrics for December 2025, with group-wide passenger capacity up 4.0% year on year and passenger traffic rising 10.0%, driven by robust growth on domestic and international routes, which helped lift the overal...
Shanghai Stock Exchange Accepts Air China’s A-Share Issuance Application
Jan 8, 2026
Air China Limited has announced that the Shanghai Stock Exchange has formally accepted its application to issue A shares to specific investors on the Main Board. The exchange has confirmed that the company’s prospectus and related applicatio...
Air China Trims Cathay Pacific Stake in HK$1.32 Billion Share Placing
Jan 6, 2026
Air China has agreed to sell 108.08 million shares in Cathay Pacific Airways, or about 1.61% of the Hong Kong carrier’s issued share capital, via a placing handled by Morgan Stanley at HK$12.22 per share. The disposal, conducted through its ...
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.
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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.