China Southern Airlines Company Limited Class H (HK:1055)
:1055
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China Southern Airlines Company Limited Class H
(1055)
Select Model
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Rating:47Neutral
Price Target:
HK$4.00
▼(-1.23% Downside)
Action:ReiteratedDate:04/02/26
Overall score is held back primarily by very high leverage and thin profitability despite improving revenue and strong recent cash flow. Technicals are also weak with a clear downtrend and negative momentum, while valuation inputs are insufficient (P/E shown as 0.0 and no dividend yield) to provide a supportive offset.
Positive Factors
Strong operating cash generation
Consistent positive operating cash flow and recent strong free cash flow provide durable internal funding for operations and asset maintenance, reducing reliance on external financing. This supports capacity to service debt, fund gradual fleet investment, and sustain operations through cycles.
Negative Factors
Very high leverage
Debt levels materially exceed equity, constraining financial flexibility for years. High leverage raises interest costs and refinancing risk, limits the ability to invest or absorb shocks, and makes earnings and cash flow more exposed to demand or cost volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash generation
Consistent positive operating cash flow and recent strong free cash flow provide durable internal funding for operations and asset maintenance, reducing reliance on external financing. This supports capacity to service debt, fund gradual fleet investment, and sustain operations through cycles.
Read all positive factors
China Southern Airlines Company Limited Class H (1055) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$105.69B
Dividend YieldN/A
Average Volume (3M)19.42M
Price to Earnings (P/E)113.9
Beta (1Y)0.88
Revenue Growth1.42%
EPS Growth3.33%
CountryHK
Employees102,597
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-0.13
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$5.10Price Target Upside25.93% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.19
Revenue Forecast (FY)HK$192.48B
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 and related services. Its main revenue stream is passenger revenue, generated from ticket sales across domestic and international routes, including economy and premium cab...
China Southern Airlines Company Limited Class H Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
34
Negative
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 182.26B | 174.22B | 159.93B | 87.06B | 101.64B |
| Gross Profit | 18.48B | 14.65B | 12.35B | -17.18B | 22.77B |
| EBITDA | 41.46B | 32.35B | 27.69B | -5.36B | 13.90B |
| Net Income | 857.00M | -1.70B | -4.21B | -33.72B | -11.02B |
Balance Sheet | |||||
| Total Assets | 349.81B | 329.74B | 309.23B | 312.25B | 323.21B |
| Cash, Cash Equivalents and Short-Term Investments | 19.83B | 18.69B | 13.08B | 19.89B | 21.46B |
| Total Debt | 167.17B | 171.46B | 171.12B | 214.54B | 199.02B |
| Total Liabilities | 294.80B | 277.14B | 257.23B | 256.89B | 238.70B |
| Stockholders Equity | 35.58B | 34.73B | 36.78B | 41.27B | 67.85B |
Cash Flow | |||||
| Free Cash Flow | 20.44B | 15.31B | 28.77B | -14.15B | -9.45B |
| Operating Cash Flow | 38.21B | 31.45B | 40.13B | -2.45B | 7.69B |
| Investing Cash Flow | -19.21B | -16.45B | -17.51B | -5.85B | -15.82B |
| Financing Cash Flow | -22.57B | -11.55B | -33.01B | 299.00M | 4.19B |
China Southern Airlines Company Limited Class H Technical Analysis
Negative
4.05
Price Trends
5.35
Negative
5.42
Negative
4.69
Negative
Market Momentum
-0.39
Negative
34.10
Neutral
45.17
Neutral
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 4.05 is below the 20-day moving average (MA) of 4.39, below the 50-day MA of 5.35, and below the 200-day MA of 4.69, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 34.10 is Neutral, neither overbought nor oversold. The STOCH value of 45.17 is Neutral, 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$69.39B | 7.51 | 19.38% | 5.38% | 8.54% | 16.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
47 Neutral | HK$105.69B | 113.91 | -6.44% | ― | 1.42% | 3.33% | |
44 Neutral | HK$101.44B | -43.52 | -7.13% | ― | 4.61% | 38.36% | |
43 Neutral | HK$121.23B | -60.78 | -4.06% | ― | 4.08% | ― |
* Industrials Sector Average
HK:1055
China Southern Airlines Company Limited Class H
4.05
1.07
35.91%
HK:0753
Air China
4.80
0.59
14.01%
HK:0293
Cathay Pacific Airways
11.41
3.27
40.22%
HK:0670
China Eastern Airlines Corporation Limited Class H
3.72
1.55
71.43%
China Southern Airlines Company Limited Class H Corporate Events
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...
China Southern Airlines Calls 2026 EGM to Approve Auditors and New Executive Director
Feb 5, 2026
China Southern Airlines has called its first extraordinary general meeting of 2026 for 2 March in Guangzhou, where shareholders will vote on the appointment of ShineWing Certified Public Accountants and Shinewing (HK) CPA Limited as its domestic, ...
China Southern Airlines Forecasts 2025 Profit After Years of Losses
Jan 30, 2026
China Southern Airlines has issued preliminary estimates indicating it expects to swing from a substantial loss in 2024 to a net profit attributable to shareholders of approximately RMB0.8 billion to RMB1.0 billion for the 2025 financial year, wit...
China Southern Airlines Announces Resignation of Executive Vice President
Jan 29, 2026
China Southern Airlines has announced the resignation of Executive Vice President Qu Guangji, effective 29 January 2016, citing work-related changes as the reason for his departure. The board stated that Qu has no disagreement with the company or ...
China Southern Airlines Proposes Appointment of Cai Zhizhou as Executive Director
Jan 29, 2026
China Southern Airlines has announced that its board has resolved to propose the appointment of Cai Zhizhou as an executive director for the 10th session of the board, with his appointment subject to approval by shareholders at an upcoming general...
China Southern Airlines Plans Auditor Change After Decade With KPMG
Jan 29, 2026
China Southern Airlines has announced a planned change of auditors following a public tender process conducted under rules governing state-owned and listed companies’ appointment of accounting firms. After KPMG Huazhen LLP and KPMG serving a...
China Southern Airlines Sets March Date and Record Period for 2026 Extraordinary General Meeting
Jan 28, 2026
China Southern Airlines has announced that it will convene its first extraordinary general meeting of 2026 on 2 March in Hong Kong, with a circular detailing the resolutions and formal notice to be dispatched to shareholders in due course. To dete...
China Southern Airlines Sets Out Board and Committee Structure
Jan 23, 2026
China Southern Airlines Company Limited has announced the current composition of its board of directors, led by Chairman Ma Xulun and Vice Chairman and President Han Wensheng, and including independent non-executive directors Pansy Catalina Chiu K...
China Southern Airlines Names Zhang Tao as Employee Director on 10th Board
Jan 23, 2026
China Southern Airlines has appointed Zhang Tao as the employee director on its 10th board, following his election by the company’s employees’ representative meeting, with his term running until the end of the current board session. Zh...
China Southern Airlines Posts Double-Digit Traffic Growth and Expands Fleet in December 2025
Jan 15, 2026
China Southern Airlines reported solid growth in both passenger and cargo operations for December 2025, with overall passenger capacity (ASK) rising 11.89% year-on-year and traffic (RPK) up 11.20%, driven especially by a 25.76% jump in internation...
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.