Air China Ltd (HK:0753)
:0753
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Air China
(0753)
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Rating:48Neutral
Price Target:
HK$5.50
â–²(9.56% Upside)
Action:Reiterated
Date:05/03/26
The score is held back mainly by weak technicals (price below key moving averages and negative MACD) and constrained financial resilience from very high leverage, despite a TTM return to profitability and generally positive cash generation. Valuation is also less supportive due to a negative P/E and no provided dividend yield.
Positive Factors
Market position and network scale
As China's flagship carrier with an extensive domestic and international route network and cargo capacity, the company benefits from scale, national brand recognition and hub advantages. This structural market position supports demand resilience, partnership leverage and long-term route economics.
Negative Factors
Very high leverage
Extremely elevated debt-to-equity materially reduces financial flexibility and raises refinancing and covenant risk in a cyclical industry. High leverage amplifies downside from demand shocks or fuel/FX swings and constrains capital allocation for growth or fleet renewal.
Read all positive and negative factors
Positive Factors
Negative Factors
Market position and network scale
As China's flagship carrier with an extensive domestic and international route network and cargo capacity, the company benefits from scale, national brand recognition and hub advantages. This structural market position supports demand resilience, partnership leverage and long-term route economics.
Read all positive factors
Air China (0753) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$118.81B
Dividend YieldN/A
Average Volume (3M)23.95M
Price to Earnings (P/E)10.0
Beta (1Y)0.94
Revenue Growth2.95%
EPS Growth-247.29%
CountryHK
Employees104,909
SectorGeneral
Sector StrengthN/A
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.12
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$5.40Price Target Upside7.57% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-0.05
Revenue Forecast (FY)HK$188.32B
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 capacity and related services. Its core revenue stream is passenger transportation: it earns ticket revenue from travelers flying on its domestic and international routes, including cab...
Air China Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
31
Negative
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 174.48B | 167.05B | 166.70B | 141.10B | 52.90B | 74.53B |
| Gross Profit | 8.41B | 1.70B | 8.51B | 7.09B | -29.91B | -11.31B |
| EBITDA | 18.97B | 24.98B | 33.90B | 32.40B | -18.16B | 4.61B |
| Net Income | 1.97B | -1.74B | -237.31M | -1.05B | -45.18B | -18.83B |
Balance Sheet | ||||||
| Total Assets | 344.27B | 343.16B | 345.77B | 335.30B | 295.01B | 298.42B |
| Cash, Cash Equivalents and Short-Term Investments | 16.12B | 16.02B | 22.51B | 15.63B | 11.44B | 16.71B |
| Total Debt | 168.28B | 232.43B | 226.70B | 175.39B | 214.18B | 182.87B |
| Total Liabilities | 303.54B | 303.95B | 304.82B | 300.01B | 273.45B | 232.55B |
| Stockholders Equity | 43.99B | 42.53B | 45.15B | 37.23B | 23.61B | 61.40B |
Cash Flow | ||||||
| Free Cash Flow | 8.67B | 24.48B | 14.44B | 12.65B | -24.40B | 6.81B |
| Operating Cash Flow | 26.61B | 42.05B | 34.55B | 35.42B | -16.76B | 12.89B |
| Investing Cash Flow | -13.42B | -15.08B | -17.86B | -15.25B | -6.87B | -4.45B |
| Financing Cash Flow | -20.15B | -33.65B | -10.56B | -15.85B | 18.10B | 1.71B |
Air China Technical Analysis
Negative
5.02
Price Trends
5.06
Negative
6.07
Negative
5.93
Negative
Market Momentum
-0.09
Positive
38.79
Neutral
10.50
Positive
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 5.02 is above the 20-day moving average (MA) of 4.96, below the 50-day MA of 5.06, and below the 200-day MA of 5.93, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 38.79 is Neutral, neither overbought nor oversold. The STOCH value of 10.50 is Positive, 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$73.10B | 2.86 | 19.38% | 5.38% | 11.88% | 10.90% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | HK$118.81B | 10.05 | 4.53% | ― | 2.95% | -247.29% | |
44 Neutral | HK$97.23B | 10.96 | 2.52% | ― | 5.99% | 44.57% | |
42 Neutral | HK$98.61B | 10.72 | 8.64% | ― | 4.68% | ― |
* General Sector Average
HK:0753
Air China
4.65
-0.81
-14.84%
HK:0293
Cathay Pacific Airways
12.07
2.34
23.99%
HK:1055
China Southern Airlines Company Limited Class H
3.80
0.10
2.70%
HK:0670
China Eastern Airlines Corporation Limited Class H
3.56
0.88
32.84%
Air China Corporate Events
Air China Calls 2026 AGM and Seeks Broad Debt Issuance Mandate Amid Losses
May 6, 2026
Air China has convened its 2026 annual shareholders’ meeting for 28 May in Beijing, where investors will review the board’s 2025 work report, approve audited financial statements under PRC and IFRS standards, and vote on the 2025 profi...
Air China Sets New Intra-Group Financial Services Agreements With CNAF
Apr 29, 2026
Air China has approved new financial services agreements with its 51%-owned subsidiary China National Aviation Finance (CNAF) and related parties to replace existing arrangements that expire at the end of 2026. Under the new deals, CNAF will conti...
Air China Swings Back to Profit on Strong First-Quarter 2026 Performance
Apr 29, 2026
Air China reported a sharp turnaround in its first-quarter 2026 results, with revenue rising 11.28% year on year to RMB 44.54 billion and net profit attributable to shareholders swinging to RMB 1.71 billion from a loss a year earlier. Profitabilit...
Air China Announces Departure of Chief Accountant in Planned Management Change
Apr 29, 2026
Air China announced that Chief Accountant Sun Yuquan has stepped down from his role, effective 29 April 2026, as part of an internal work adjustment. The company said Sun has completed all required handover procedures, has no outstanding commitmen...
Air China Posts Strong March Passenger Growth as Network and Fleet Expand
Apr 15, 2026
Air China reported strong operating metrics for March 2026, with combined passenger capacity measured by available seat kilometers up 10.7% year on year and passenger traffic up 19.9%, lifting the overall passenger load factor to 86.3%. Growth was...
Air China Sets Board Meeting to Approve First-Quarter 2026 Results
Apr 15, 2026
Air China has announced that its board of directors will meet in Beijing on 29 April 2026 to review and approve the company’s first-quarter results for the period ended 31 March 2026. The scheduled board meeting signals the forthcoming relea...
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 ...
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.