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China Southern Airlines Company Limited Class H
(1055)
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Rating:44Neutral
Price Target:
HK$3.50
▼(-15.87% Downside)
Action:Reiterated
Date:06/16/26
The score is held down primarily by fragile profitability (TTM net loss) and high leverage, partially offset by improved revenue recovery and positive operating cash flow. Technicals remain broadly weak (below key longer-term moving averages with negative MACD), and valuation appears demanding (P/E ~32) without a dividend yield to provide support.
Positive Factors
Revenue recovery and growth trend
Sustained revenue expansion since 2023 and continued growth into 2024–2025 indicates durable demand recovery and improved network utilization. Over 2–6 months this supports route reinstatement, better load factors and a steadier top line that underpins longer-term margin restoration potential.
Negative Factors
Elevated leverage
Very high debt-to-equity (~6x) materially limits financial flexibility and increases refinancing and interest-rate vulnerability. Over months this raises default risk in downside scenarios, constrains strategic investments, and reduces the company's ability to absorb revenue shocks or fund fleet renewal from internal sources.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery and growth trend
Sustained revenue expansion since 2023 and continued growth into 2024–2025 indicates durable demand recovery and improved network utilization. Over 2–6 months this supports route reinstatement, better load factors and a steadier top line that underpins longer-term margin restoration potential.
Read all positive factors
China Southern Airlines Company Limited Class H (1055) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$96.96B
Dividend YieldN/A
Average Volume (3M)19.42M
Price to Earnings (P/E)32.1
Beta (1Y)0.88
Revenue Growth4.68%
EPS GrowthN/A
CountryHK
Employees102,597
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-0.04
Shares Outstanding4,643,997,000
10 Day Avg. Volume24,091,406
30 Day Avg. Volume19,416,847
Financial Highlights & Ratios
PEG Ratio-0.76
Price to Book (P/B)2.74
Price to Sales (P/S)0.54
P/FCF Ratio4.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$4.39Price Target Upside5.59% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.03
Revenue Forecast (FY)HK$199.69B
China Southern Airlines Company Limited Class H Business Overview & Revenue Model
Company Description
China Southern Airlines Company Limited is a leading provider of air transport services, operating across the People's Republic of China, including its special administrative regions of Hong Kong and Macau, Taiwan, and numerous international desti...
How the Company Makes Money
China Southern Airlines primarily makes money by selling air transportation services. Its core revenue stream is passenger revenue from ticket sales across domestic and international routes, with pricing influenced by demand, cabin class, fare rul...
China Southern Airlines Company Limited Class H Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
28
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 135.26B | 182.26B | 174.22B | 159.93B | 87.06B | 101.64B |
| Gross Profit | 11.46B | 18.48B | 14.65B | 12.35B | -17.18B | 22.77B |
| EBITDA | 6.45B | 41.46B | 32.35B | 27.69B | -5.36B | 13.90B |
| Net Income | -755.00M | 857.00M | -1.70B | -4.21B | -33.72B | -11.02B |
Balance Sheet | ||||||
| Total Assets | 356.51B | 349.81B | 329.74B | 309.23B | 312.25B | 323.21B |
| Cash, Cash Equivalents and Short-Term Investments | 19.78B | 19.83B | 18.69B | 13.08B | 19.89B | 21.46B |
| Total Debt | 166.08B | 167.17B | 171.46B | 171.12B | 214.54B | 199.02B |
| Total Liabilities | 299.35B | 294.80B | 277.14B | 257.23B | 256.89B | 238.70B |
| Stockholders Equity | 37.06B | 35.58B | 34.73B | 36.78B | 41.27B | 67.85B |
Cash Flow | ||||||
| Free Cash Flow | 2.82B | 20.44B | 15.31B | 28.77B | -14.15B | -9.45B |
| Operating Cash Flow | 20.58B | 38.21B | 31.45B | 40.13B | -2.45B | 7.69B |
| Investing Cash Flow | -22.41B | -19.21B | -16.45B | -17.51B | -5.85B | -15.82B |
| Financing Cash Flow | -3.68B | -22.57B | -11.55B | -33.01B | 299.00M | 4.19B |
China Southern Airlines Company Limited Class H Technical Analysis
Negative
4.16
Price Trends
3.84
Negative
4.44
Negative
4.72
Negative
Market Momentum
-0.12
Positive
38.39
Neutral
10.25
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1055, the sentiment is Negative. The current price of 4.16 is above the 20-day moving average (MA) of 3.57, above the 50-day MA of 3.84, and below the 200-day MA of 4.72, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 38.39 is Neutral, neither overbought nor oversold. The STOCH value of 10.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1055.
China Southern Airlines Company Limited Class H Risk Analysis
China Southern Airlines Company Limited Class H disclosed 31 risk factors in its most recent earnings report. China Southern Airlines Company Limited Class H reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
China Southern Airlines Company Limited Class H Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$79.36B | 7.83 | 19.38% | 5.38% | 11.88% | 10.90% | |
75 Outperform | HK$39.88B | 9.21 | 9.96% | 6.39% | -8.51% | 9.94% | |
67 Neutral | HK$179.37B | 14.16 | 11.60% | 2.77% | 10.09% | 7.87% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
48 Neutral | HK$150.12B | 54.96 | 4.53% | ― | 2.95% | -634.39% | |
44 Neutral | HK$96.96B | 32.13 | 8.64% | ― | 4.68% | ― | |
44 Neutral | HK$90.65B | 87.33 | 2.52% | ― | 5.99% | 44.57% |
* Industrials Sector Average
HK:1055
China Southern Airlines Company Limited Class H
3.39
-0.43
-11.26%
HK:0753
Air China
4.26
-1.45
-25.39%
HK:0293
Cathay Pacific Airways
13.05
2.83
27.72%
HK:0598
Sinotrans
4.01
0.17
4.37%
HK:0670
China Eastern Airlines Corporation Limited Class H
3.20
0.15
4.92%
HK:6936
S.F. Holding Co., Ltd. Class H
31.10
-10.95
-26.05%
China Southern Airlines Company Limited Class H Corporate Events
China Southern’s CSA Cargo Orders Seven Boeing 777 Freighters With Options for More
Jun 26, 2026
China Southern Airlines’ 55%-owned subsidiary CSA Cargo has agreed to buy five new Boeing 777-8F freighters and two 777F aircraft from Boeing, while securing options to acquire three additional 777-8Fs. The deal, classed as a discloseable tr...
China Southern Sees Domestic Softness but International and Cargo Segments Firm in May
Jun 15, 2026
China Southern Airlines reported that its overall passenger capacity and traffic declined in May 2026 versus a year earlier, driven by sharp drops on domestic and regional routes, while international capacity and demand continued to grow. The pass...
China Southern Airlines Clears All Resolutions at 2025 AGM With Strong Shareholder Turnout
May 29, 2026
China Southern Airlines held its 2025 annual general meeting on 29 May 2026 in Guangzhou, with 1,823 shareholders and proxies present, representing about 76.67% of the company’s voting share capital. Attendance was dominated by A-share inves...
China Southern Airlines Wins Controlling Shareholder Backing for RMB 15 Billion A-Share Placement
May 26, 2026
China Southern Airlines has received in-principle approval from its controlling shareholder, China Southern Air Holding, for a proposed private placement of up to 5,436,289,835 A shares, aiming to raise no more than RMB 15 billion. The planned iss...
China Southern Airlines Adds A-Share Issuance Resolutions to AGM Agenda
May 13, 2026
China Southern Airlines has issued a supplemental notice for its upcoming annual general meeting in Guangzhou, confirming that the meeting will proceed as scheduled while adding several new resolutions. The additions stem from a motion by controll...
China Southern Airlines Calls 2026 AGM, Flags Losses and Seeks Share Issue Mandate
May 7, 2026
China Southern Airlines has convened its annual general meeting for 29 May 2026 in Guangzhou, where shareholders will review the board report, 2025 annual report, audited financial statements and profit distribution proposal. The board has stated ...
China Southern Airlines Sets AGM Date and Closes H Share Register
May 6, 2026
China Southern Airlines Company Limited has scheduled its annual general meeting for Friday, 29 May 2026, with a circular detailing the resolutions and the formal notice of meeting to be sent to shareholders in due course. The announcement signals...
China Southern Airlines Plans Up to RMB 15 Billion Connected A-Share Issuance
Apr 29, 2026
China Southern Airlines plans a private placement of up to 5,436,289,835 new A shares to no more than 35 specified investors, including its controlling shareholder China Southern Air Holding (CSAH), to raise proceeds of up to RMB 15 billion. The f...
China Southern and Xiamen Airlines Order 137 Airbus A320NEO Jets in Major Fleet Expansion
Apr 29, 2026
China Southern Airlines and its 55%-owned subsidiary Xiamen Airlines have agreed to purchase a total of 137 Airbus A320NEO family aircraft from Airbus S.A.S., with 102 aircraft ordered by the parent and 35 by the subsidiary. The transaction qualif...
China Southern Airlines Returns to Profit on Revenue Growth in Q1 2026
Apr 29, 2026
China Southern Airlines posted a solid rebound in the first quarter of 2026, with operating revenue rising 10.08% year on year to RMB 47.78 billion as travel demand continued to recover. The airline swung to a net profit attributable to shareholde...
China Southern Airlines Appoints New Vice President After Unanimous Board Vote
Apr 29, 2026
China Southern Airlines has announced a senior management change following the fifteenth meeting of the tenth session of its board of directors held on 29 April 2026. The board unanimously approved the appointment of Mr. Liang Shuang as Vice Presi...
China Southern Airlines Sets April 29 Board Meeting to Approve Q1 2026 Results
Apr 16, 2026
China Southern Airlines Company Limited has scheduled a board meeting for Wednesday, 29 April 2026 to review and approve its first quarter results for the three months ended 31 March 2026. The timing of the meeting signals the airline is moving ah...
China Southern Airlines Lifts March Traffic as International Routes and Fleet Expansion Drive Growth
Apr 14, 2026
China Southern Airlines reported robust traffic growth for March 2026, with overall passenger capacity up 12.36% year on year and revenue passenger kilometers rising 13.76%. International and regional routes outpaced domestic growth, pushing the g...
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.