China Southern Airlines Company Limited Class H (HK:1055)
:1055
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China Southern Airlines Company Limited Class H
(1055)
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Rating:42Neutral
Price Target:
HK$4.50
▲(8.17% Upside)
Action:Reiterated
Date:05/03/26
The score is held down primarily by elevated balance-sheet leverage and fragile profitability (TTM net loss), despite improving revenue and generally positive operating cash flow. Technical indicators also point to a weak downtrend and bearish momentum. Valuation provides little cushion given the very high P/E and no dividend support.
Positive Factors
Revenue recovery
Sustained revenue rebound since 2023 indicates recovering travel demand and improved network utilization across domestic and international routes. Durable top-line growth provides a foundation for operating leverage, capacity optimization and gradual margin recovery over the next 2–6 months.
Negative Factors
High leverage
Very high debt-to-equity (~6x) materially limits financial flexibility, raises interest burden and heightens refinancing risk. In a cyclical industry like airlines this leverage constrains ability to absorb shocks, invest in growth or pursue strategic moves without improving earnings or restructuring.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery
Sustained revenue rebound since 2023 indicates recovering travel demand and improved network utilization across domestic and international routes. Durable top-line growth provides a foundation for operating leverage, capacity optimization and gradual margin recovery over the next 2–6 months.
Read all positive factors
China Southern Airlines Company Limited Class H (1055) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$99.51B
Dividend YieldN/A
Average Volume (3M)19.42M
Price to Earnings (P/E)10.7
Beta (1Y)0.90
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$4.15Price Target Upside-0.24% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)-0.02
Revenue Forecast (FY)HK$199.25B
China Southern Airlines Company Limited Class H Business Overview & Revenue Model
Company Description
China Southern Airlines Company Limited offers airline transportation services in the People's Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company operates in two segments, Airline Transportation Operations and Other Segm...
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
4.26
Negative
5.09
Negative
4.74
Negative
Market Momentum
-0.10
Positive
36.86
Neutral
7.29
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 4.12, below the 50-day MA of 4.26, and below the 200-day MA of 4.74, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 36.86 is Neutral, neither overbought nor oversold. The STOCH value of 7.29 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$72.91B | 2.86 | 19.38% | 5.38% | 11.88% | 10.90% | |
75 Outperform | HK$47.30B | 11.05 | 9.96% | 6.39% | -8.51% | 9.94% | |
67 Neutral | HK$196.76B | 15.39 | 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$120.21B | 10.05 | 4.53% | ― | 2.95% | -247.29% | |
44 Neutral | HK$98.18B | 10.96 | 2.52% | ― | 5.99% | 44.57% | |
42 Neutral | HK$99.51B | 10.72 | 8.64% | ― | 4.68% | ― |
* Industrials Sector Average
HK:1055
China Southern Airlines Company Limited Class H
3.76
0.06
1.62%
HK:0753
Air China
4.57
-0.89
-16.30%
HK:0293
Cathay Pacific Airways
11.99
2.26
23.16%
HK:0598
Sinotrans
4.97
1.48
42.53%
HK:0670
China Eastern Airlines Corporation Limited Class H
3.53
0.85
31.72%
HK:6936
S.F. Holding Co., Ltd. Class H
32.42
-6.07
-15.77%
China Southern Airlines Company Limited Class H Corporate Events
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...
China Southern Airlines Returns to Profit on Rising 2025 Revenue
Mar 30, 2026
China Southern Airlines reported an increase in total operating revenue to RMB 182.26 billion in 2025 from RMB 174.22 billion in 2024, driven mainly by higher traffic revenue. Operating profit rose to RMB 9.58 billion, supported by other net incom...
China Southern Posts Strong February Traffic and Expands Fleet, Routes
Mar 16, 2026
China Southern Airlines reported solid growth in February 2026 traffic, with group passenger capacity up 14.39% year on year and passenger traffic rising 13.82%, led by particularly strong gains on international and regional routes. Despite a slig...
China Southern Airlines Sets March 2026 Board Meeting to Approve 2025 Results
Mar 13, 2026
China Southern Airlines has scheduled a board meeting for 30 March 2026 to review and approve its annual results for the year ended 31 December 2025. The board will also consider the payment of a final dividend, if any, a decision that could influ...
China Southern Airlines Shareholders Approve 2026 Auditor and Elect New Executive Director
Mar 2, 2026
China Southern Airlines reported the poll results of its first extraordinary general meeting of 2026, held in Guangzhou, where 354 shareholders and proxies representing about 68.39% of voting shares were present. All resolutions proposed were pass...
China Southern Airlines Details Board and Committee Structure
Mar 2, 2026
China Southern Airlines has announced the current composition of its board of directors, led by executive directors Ma Xulun as chairman and Han Wensheng as vice chairman and president, alongside executive director Cai Zhizhou, four independent no...
China Southern Sees Softer Domestic Passenger Demand but Stronger Cargo in January 2026
Feb 13, 2026
China Southern Airlines reported mixed operating metrics for January 2026, with overall passenger capacity down 1.10% year on year as domestic capacity declined 5.42%, while regional and international capacity rose modestly and by double digits, r...
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.