China Southern Airlines Company Limited Class H (1055) AI Stock Analysis

• Market Cap: HK$106.85B
• Dividend Yield: N/A
• Average Volume (3M): 17.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: 1.42%
• EPS Growth: N/A
• Country: HK
• Employees: 102,597
• Sector: Industrials
• Sector Strength: 80
• Industry: Airlines, Airports & Air Services
• EPS (TTM): -0.04
• Shares Outstanding: 4,643,997,000
• 10 Day Avg. Volume: 17,217,480
• 30 Day Avg. Volume: 17,095,945
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$3.97
• Price Target Upside: 4.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 47 Neutral
• Price Target: HK$3.50 ▼(-7.65% Downside)

China Southern Airlines' overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues, persistent losses, and high leverage. The technical analysis provides a slightly positive outlook with some bullish momentum, but the valuation remains unattractive due to negative profitability and lack of dividends. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Demand

Strong Labour Day travel data indicates improving demand and a brighter near-term outlook.

Operating Margins

Lower jet fuel prices and weaker USD to provide a meaningful boost to operating margins.

Negative Factors

Macroeconomic Headwinds

Macroeconomic headwinds and diversion to high-speed rail could curtail passenger traffic recovery and keep a lid on yields.

Pricing Pressures

FY24 missed expectations due to pricing pressures, with domestic/international passenger yields down 11%/21%.

Trade Tensions

Macroeconomic uncertainty and emerging cargo headwinds amid elevated trade tensions undermine recovery story.

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 Segments. It offers passenger, cargo, mail delivery, and other extended transportation services. The company also provides aircraft repair and maintenance, air catering, cargo handling, logistics, freight, airport ground, and general aviation services; and import and export agency, flight simulation, leasing, and pilot training services, as well as hotel management and tour services. It operates a fleet of 879 commercial aircraft and 28 civil helicopters. The company was incorporated in 1995 and is headquartered in Guangzhou, the People's Republic of China.

How the Company Makes Money

China Southern Airlines generates revenue primarily through ticket sales for passenger flights, which is its core business. The airline offers various classes of service to cater to different market segments, including economy, business, and first class. Additionally, the company earns revenue from cargo transportation services, leveraging its extensive network to transport goods domestically and internationally. Ancillary services such as baggage fees, onboard sales, and loyalty programs contribute to its income. The airline also has partnerships with other carriers, alliances, and codeshare agreements that enhance its route offerings and customer base, further boosting revenue. Other income streams include aircraft maintenance services, air catering, and logistics operations, which provide support and additional financial inflows.

China Southern Airlines Company Limited Class H Financial Statement Overview

Summary

China Southern Airlines is facing financial challenges with declining revenues, persistent net losses, and high leverage. The negative profitability margins and cash flow constraints indicate operational and financial difficulties. The airline industry’s capital-intensive nature, combined with the current financial trajectory, suggests a need for strategic restructuring to improve financial health.

Income Statement

The income statement shows a challenging financial situation with declining revenue and persistent losses. The Gross Profit Margin for TTM (Trailing-Twelve-Months) is 7.78%, indicating a minimal profit after covering the cost of goods sold. The Net Profit Margin is negative, at -1.85% for TTM, reflecting ongoing unprofitability. Revenue has decreased slightly from the previous year, indicating negative growth. The EBIT and EBITDA margins are also negative, pointing to operational inefficiencies and high fixed costs.

Balance Sheet

The balance sheet reveals a stable yet leveraged financial position. The Debt-to-Equity Ratio is high at 5.08, signaling significant leverage which could pose financial risks. The Return on Equity is negative due to net losses, but the Equity Ratio is 10.29%, suggesting a moderate level of equity compared to total assets. Despite the high leverage, the company maintains adequate asset levels.

Cash Flow

Cash flow analysis highlights financial strain with negative free cash flow. Operating Cash Flow to Net Income Ratio indicates some ability to generate cash but remains strained by net losses. The Free Cash Flow Growth Rate is negative, suggesting a decrease in available cash for reinvestment. The Free Cash Flow to Net Income Ratio is also negative, highlighting challenges in cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	175.72B	174.22B	159.93B	87.06B	101.64B	92.56B
Gross Profit	16.02B	14.65B	12.35B	-17.18B	22.77B	22.90B
EBITDA	6.08B	32.35B	27.69B	-5.36B	13.90B	14.05B
Net Income	-2.00B	-1.70B	-4.21B	-33.72B	-11.02B	-11.83B
Balance Sheet
Total Assets	336.54B	329.74B	309.23B	312.25B	323.21B	326.38B
Cash, Cash Equivalents and Short-Term Investments	17.48B	18.69B	13.08B	19.89B	21.46B	25.42B
Total Debt	159.09B	171.46B	171.12B	214.54B	199.02B	199.45B
Total Liabilities	284.77B	277.14B	257.23B	256.89B	238.70B	241.25B
Stockholders Equity	33.20B	34.73B	36.78B	41.27B	67.85B	69.58B
Cash Flow
Free Cash Flow	5.68B	15.31B	28.77B	-14.15B	-9.45B	-8.36B
Operating Cash Flow	14.34B	31.45B	40.13B	-2.45B	7.69B	2.70B
Investing Cash Flow	-11.04B	-16.45B	-17.51B	-5.85B	-15.82B	-8.05B
Financing Cash Flow	-15.90B	-11.55B	-33.01B	299.00M	4.19B	22.30B

China Southern Airlines Company Limited Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.79
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.79 is below the 20-day moving average (MA) of 3.86, below the 50-day MA of 3.82, and above the 200-day MA of 3.73, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 15.46 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.74B	15.62	8.14%	2.00%	2.79%	-14.82%
1055	47 Neutral	HK$106.85B	―	-6.44%	―	1.42%	―
AIRC	―	£12.31B	165.91	1.75%	―	―	―
CPCAF	―	$8.84B	6.89	17.73%	6.51%	―	―
0670	50 Neutral	HK$91.48B	―	-9.88%	―	14.25%	―

China Southern Airlines Company Limited Class H Corporate Events

China Southern Airlines Reports Growth in Passenger and Cargo Operations for June 2025

In June 2025, China Southern Airlines reported a 4.57% year-on-year increase in passenger capacity, with notable growth in international routes at 14.60%. Passenger traffic rose by 6.69%, and the passenger load factor improved to 85.18%. Cargo operations also saw a 7.04% increase in capacity, although the load factor slightly decreased. The airline introduced new routes and expanded its fleet with four new aircraft, maintaining a total of 943 commercial aircraft.

The most recent analyst rating on (HK:1055) stock is a Buy with a HK$4.60 price target. To see the full list of analyst forecasts on China Southern Airlines Company Limited Class H stock, see the HK:1055 Stock Forecast page.

China Southern Airlines Projects Significant Loss for H1 2025

China Southern Airlines has announced an estimated net loss of RMB1.338 billion to RMB1.756 billion for the first half of 2025, attributing the loss to factors such as changes in passenger structure, competition from high-speed railways, and global economic uncertainties. Despite these challenges, the company noted an improvement in net profit after excluding non-recurring items, indicating some operational resilience amidst the pressures.

The most recent analyst rating on (HK:1055) stock is a Buy with a HK$4.60 price target. To see the full list of analyst forecasts on China Southern Airlines Company Limited Class H stock, see the HK:1055 Stock Forecast page.

China Southern Airlines Reports Growth in Passenger and Cargo Operations for May 2025

In May 2025, China Southern Airlines reported an increase in passenger capacity and traffic, with notable growth in international routes. The passenger load factor also improved, indicating better utilization of available seats. Cargo operations saw a rise in capacity and traffic, with a slight improvement in the load factor. The company introduced four new aircraft to its fleet, enhancing its operational capabilities.

The most recent analyst rating on (HK:1055) stock is a Buy with a HK$4.60 price target. To see the full list of analyst forecasts on China Southern Airlines Company Limited Class H stock, see the HK:1055 Stock Forecast page.

China Southern Airlines Postpones EGM and Cancels Book Closure

China Southern Airlines has announced the postponement of its Extraordinary General Meeting (EGM) originally scheduled for June 27, 2025. Consequently, the previously planned book closure period from June 18 to June 27, 2025, has been canceled. The company will issue further announcements once new dates for the EGM and book closure period are determined. This decision may impact shareholders and stakeholders who were preparing for the meeting and related financial arrangements.

The most recent analyst rating on (HK:1055) stock is a Buy with a HK$4.60 price target. To see the full list of analyst forecasts on China Southern Airlines Company Limited Class H stock, see the HK:1055 Stock Forecast page.

China Southern Airlines Announces EGM and Register Closure

China Southern Airlines has announced the closure of its register of members in preparation for its first extraordinary general meeting (EGM) of 2025, scheduled for June 27. The closure period, from June 18 to June 27, is set to determine the eligibility of H share holders to attend and vote at the EGM, impacting shareholders’ ability to transfer shares during this time.

The most recent analyst rating on (HK:1055) stock is a Sell with a HK$2.40 price target. To see the full list of analyst forecasts on China Southern Airlines Company Limited Class H stock, see the HK:1055 Stock Forecast page.

China Southern Airlines Announces Key Changes at 2024 AGM

China Southern Airlines held its 2024 Annual General Meeting (AGM) where all proposed resolutions were passed. The meeting saw the resignation of a supervisor, the appointment of a new director and supervisor, and changes in the composition of several committees, including the Audit and Risk Management Committee, Nomination Committee, and Aviation Safety Committee. These changes are expected to impact the company’s governance and operational strategies positively.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$4.20 price target. To see the full list of analyst forecasts on China Southern Airlines Company Limited Class H stock, see the HK:1055 Stock Forecast page.

China Southern Airlines Announces Board Composition and Roles

China Southern Airlines Company Limited has announced the composition of its board of directors and their respective roles within the company. The board includes executive directors, independent non-executive directors, and members of various committees such as Audit and Risk Management, Remuneration and Assessment, Nomination, Strategic and Investment, and Aviation Safety. This announcement reflects the company’s commitment to maintaining a structured and transparent governance framework, which is crucial for its operational efficiency and strategic decision-making processes.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$4.20 price target. To see the full list of analyst forecasts on China Southern Airlines Company Limited Class H stock, see the HK:1055 Stock Forecast page.

China Southern Airlines Reports April 2025 Operational Data

In April 2025, China Southern Airlines reported an increase in passenger capacity by 8.83% year-on-year, with significant growth in international routes. Passenger traffic also rose by 12.14%, and the passenger load factor improved to 85.58%. However, cargo operations saw a decrease in load factor despite a 14.46% increase in capacity. The company expanded its fleet by introducing eight new aircraft while retiring three, maintaining a total of 937 aircraft.

The most recent analyst rating on (HK:1055) stock is a Buy with a HK$4.60 price target. To see the full list of analyst forecasts on China Southern Airlines Company Limited Class H stock, see the HK:1055 Stock Forecast page.