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Air China
(0753)
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Rating:48Neutral
Price Target:
HK$5.00
â–¼(-0.40% Downside)
Action:Reiterated
Date:06/16/26
The score is held back primarily by high leverage and very thin operating profitability despite a TTM return to profit, which reduces financial resilience for a cyclical airline. Technicals are mixed with only short-term strength, while valuation is unfavorable due to a high P/E and no dividend yield provided.
Positive Factors
Cash generation
Consistent positive operating and free cash flow provides durable liquidity to fund operations, working capital and aircraft needs without relying solely on capital markets. Over 2–6 months this cash generation supports operational resilience and near-term debt servicing despite thin margins.
Negative Factors
Very high leverage
Extremely elevated leverage materially constrains financial flexibility, raising refinancing, interest-rate and covenant risk. In a cyclical airline industry this magnifies downside in downturns and limits the company's ability to invest or absorb shocks without costly refinancings or asset sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating and free cash flow provides durable liquidity to fund operations, working capital and aircraft needs without relying solely on capital markets. Over 2–6 months this cash generation supports operational resilience and near-term debt servicing despite thin margins.
Read all positive factors
Air China (0753) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$137.59B
Dividend YieldN/A
Average Volume (3M)23.95M
Price to Earnings (P/E)56.9
Beta (1Y)0.94
Revenue Growth2.95%
EPS Growth-634.39%
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-0.09
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$4.87Price Target Upside-3.05% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)-0.09
Revenue Forecast (FY)HK$191.95B
Air China Business Overview & Revenue Model
Company Description
Air China Limited is a prominent aviation enterprise delivering a comprehensive suite of services, encompassing air passenger transport, air cargo logistics, and diverse airline support functions. Its extensive operational network covers not only ...
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
4.77
Negative
5.41
Negative
5.82
Negative
Market Momentum
-0.09
Negative
47.57
Neutral
38.88
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 5.02 is above the 20-day moving average (MA) of 4.52, above the 50-day MA of 4.77, and below the 200-day MA of 5.82, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 38.88 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$76.50B | 7.58 | 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$137.59B | 56.93 | 4.53% | ― | 2.95% | -634.39% | |
44 Neutral | HK$100.70B | 33.05 | 8.64% | ― | 4.68% | ― | |
44 Neutral | HK$96.66B | 91.63 | 2.52% | ― | 5.99% | 44.57% |
* General Sector Average
HK:0753
Air China
4.51
-1.45
-24.33%
HK:0293
Cathay Pacific Airways
12.58
2.64
26.56%
HK:1055
China Southern Airlines Company Limited Class H
3.58
-0.44
-10.95%
HK:0670
China Eastern Airlines Corporation Limited Class H
3.47
0.31
9.81%
Air China Corporate Events
Air China Signs Second Capital Increase Deal for Shenzhen Airlines
Jun 12, 2026
Air China has executed a Second Capital Increase Agreement to inject additional capital into Shenzhen Airlines, alongside Shenzhen International Logistics and Kunhang Investment, under the same terms previously disclosed. The move reinforces Air C...
Air China Raises Nearly RMB20 Billion Through Targeted A-Share Issuance
Jun 9, 2026
Air China has completed a private placement of 3,044,140,030 A shares at RMB6.57 each, raising total proceeds of about RMB20 billion and net proceeds of roughly RMB19.99 billion after expenses. The cash-only issuance strengthens the airline’...
Air China Backs Shenzhen Airlines With Second Capital Injection While Retaining Control
Jun 5, 2026
Air China has approved a second capital increase for its subsidiary Shenzhen Airlines, in partnership with minority shareholder Kunhang Investment, as part of a broader RMB16 billion equity financing plan for the carrier. The transaction will see ...
Air China Shareholders Back All AGM Resolutions Amid Ongoing Losses
May 28, 2026
Air China shareholders approved all ordinary resolutions at the 2025 annual meeting in Beijing, including the 2025 board work report, audited financial statements under PRC and IFRS standards, the profit distribution plan and the reappointment of ...
Air China Reshapes Board Committees, Elevates Focus on Aviation Safety
May 28, 2026
Air China Limited has updated the composition of its board of directors, confirming Chairman Liu Tiexiang and executive director Qu Guangji alongside non-executive, employee representative and independent non-executive directors. The announcement ...
Air China Moves Forward With RMB20 Billion Targeted A-Share Issuance
May 27, 2026
Air China has advanced a major equity financing initiative through a private issuance of A shares to specific investors, filing the issuance summary and related documents with the Shanghai Stock Exchange. The move underscores the airline’s e...
Air China Posts April Passenger Growth, Adds Routes and Aircraft
May 15, 2026
Air China reported higher passenger capacity and traffic for April 2026, with overall capacity up 0.5% and traffic rising 5.8% year on year, driven by particularly strong growth on international routes and improved load factors across domestic, in...
Air China Adds Board Election Proposal to 2026 AGM Agenda
May 12, 2026
Air China has issued a supplemental notice to its upcoming annual shareholders’ meeting, confirming that the AGM will proceed as scheduled on 28 May 2026 in Beijing. The company’s controlling shareholder, China National Aviation Holdin...
Air China Moves to Add Cathay Pacific Chief Ronald Lam to Board
May 12, 2026
Air China’s board has proposed appointing Ronald Lam Siu Por as a non-executive director, subject to shareholder approval at the company’s annual general meeting on 28 May 2026. Lam, currently CEO of Cathay Pacific and chair of Hong Ko...
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...
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.