tiprankstipranks
Trending News
More News >
China Southern Airlines Company Limited Class H (HK:1055)
:1055

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

Compare
9 Followers

Top Page

HK:1055

China Southern Airlines Company Limited Class H

(1055)

Select Model
Select Model
Select Model
Neutral 55 (OpenAI - 5.2)
Rating:55Neutral
Price Target:
HK$6.50
â–²(32.11% Upside)
Action:ReiteratedDate:11/14/25
The overall stock score is primarily impacted by the company's financial struggles, with negative profitability and high leverage being significant concerns. Despite strong technical indicators suggesting bullish momentum, the overbought conditions and poor valuation metrics limit the stock's attractiveness. The absence of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Scale & route network
A large domestic and international route network is a durable competitive asset: it enables diversified revenue across markets, better hub connectivity and scale economies in operations, maintenance and sales distribution, which supports recovery and long-term revenue resilience.
Operational capacity (workforce)
A workforce of over 100k signals substantial operational capacity and institutional know-how across flight operations, ground services and maintenance. This scale supports complex scheduling, high-frequency routes, and service reliability, aiding long-term competitiveness and execution of network strategy.
Recent revenue growth
Reported positive revenue growth suggests demand recovery or improved yields versus prior periods. Sustained top-line expansion over months supports capacity utilization, incremental margin improvement potential and better cash generation prospects if managed alongside costs and capacity deployment.
Negative Factors
High leverage
A debt-to-equity ratio above 5 indicates substantial leverage that reduces financial flexibility. High interest and principal obligations heighten vulnerability to demand shocks, limit ability to fund fleet renewal organically, and may force cash-conserving measures or external recapitalization.
Negative profitability margins
A persistent negative net margin and negative ROE reflect structural profitability challenges from high fixed costs and weak yields. Continued losses erode equity, restrict internal reinvestment and complicate long-term strategic investments like network expansion or fleet modernization.
Negative free cash flow
Negative free cash flow signals the company cannot fully fund operations and capex from internally generated cash. Over time this necessitates external financing or asset sales, increases refinancing risk, and constrains investments in fleet, technology and service improvements.

China Southern Airlines Company Limited Class H (1055) vs. iShares MSCI Hong Kong ETF (EWH)

China Southern Airlines Company Limited Class H Business Overview & Revenue Model

Company DescriptionChina 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 MoneyChina Southern Airlines generates revenue primarily through the sale of passenger tickets for both domestic and international flights, which constitutes the bulk of its income. The company also earns significant revenue from air cargo services, transporting goods across its extensive network. Additional revenue streams include ancillary services such as baggage fees, in-flight sales, and premium services for business travelers. Strategic partnerships with other airlines and membership in the SkyTeam alliance enhance its market presence and customer access, contributing to increased passenger volumes and freight operations. Additionally, the company may engage in code-sharing agreements and interline partnerships, allowing it to offer more routes and increase operational efficiency, further boosting its revenue potential.

China Southern Airlines Company Limited Class H Financial Statement Overview

Summary
China Southern Airlines faces 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
45
Neutral
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
50
Neutral
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue175.72B174.22B159.93B87.06B101.64B92.56B
Gross Profit16.02B14.65B12.35B-17.18B22.77B22.90B
EBITDA6.08B32.35B27.69B-5.36B13.90B14.05B
Net Income-2.00B-1.70B-4.21B-33.72B-11.02B-11.83B
Balance Sheet
Total Assets336.54B329.74B309.23B312.25B323.21B326.38B
Cash, Cash Equivalents and Short-Term Investments17.48B18.69B13.08B19.89B21.46B25.42B
Total Debt159.09B171.46B171.12B214.54B199.02B199.45B
Total Liabilities284.77B277.14B257.23B256.89B238.70B241.25B
Stockholders Equity33.20B34.73B36.78B41.27B67.85B69.58B
Cash Flow
Free Cash Flow5.68B15.31B28.77B-14.15B-9.45B-8.36B
Operating Cash Flow14.34B31.45B40.13B-2.45B7.69B2.70B
Investing Cash Flow-11.04B-16.45B-17.51B-5.85B-15.82B-8.05B
Financing Cash Flow-15.90B-11.55B-33.01B299.00M4.19B22.30B

China Southern Airlines Company Limited Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.92
Price Trends
50DMA
5.85
Negative
100DMA
5.46
Negative
200DMA
4.66
Positive
Market Momentum
MACD
-0.29
Positive
RSI
29.25
Positive
STOCH
18.95
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 4.92 is below the 20-day moving average (MA) of 5.81, below the 50-day MA of 5.85, and above the 200-day MA of 4.66, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 29.25 is Positive, neither overbought nor oversold. The STOCH value of 18.95 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$84.86B4.8817.73%5.38%8.54%16.57%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
56
Neutral
£134.51B89.680.20%―4.08%―
55
Neutral
HK$122.12B-21.78-6.44%―1.42%3.33%
54
Neutral
HK$116.14B-41.11-7.13%―4.61%38.36%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1055
China Southern Airlines Company Limited Class H
4.92
1.06
27.46%
HK:0753
Air China
5.72
0.42
7.92%
HK:0293
Cathay Pacific Airways
12.62
2.24
21.60%
HK:0670
China Eastern Airlines Corporation Limited Class H
4.43
1.73
64.07%

China Southern Airlines Company Limited Class H Corporate Events

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, with net profit after excluding non-recurring items forecast at about RMB0.13 billion to RMB0.19 billion. The turnaround, from a 2024 net loss of RMB1.696 billion and an even larger adjusted loss, is attributed to proactive measures including tighter capacity allocation, optimized passenger and cargo network layout, and strengthened cost control, which have improved operating performance despite persistent industry headwinds such as supply chain tightness and rising input costs; the company cautions that the figures are preliminary and unaudited, and urges investors to consider associated risks.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$6.00 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 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 its directors and that there are no other matters related to his resignation requiring shareholder attention, while formally expressing its appreciation for his contributions during his tenure, indicating a planned and orderly senior management transition rather than a sign of internal conflict.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$6.00 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 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 meeting. Cai, an experienced aviation and state-owned enterprise executive with a background spanning senior roles within China Southern and Guangdong Airport Authority, currently serves as deputy secretary of the Party Committee of the company and of China Southern Air Holding, and if approved will serve until the end of the current board term without receiving an additional director’s fee; the move underscores a continuity of Party-aligned leadership within the group and may influence governance and strategic direction as the company navigates China’s evolving aviation landscape.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$6.00 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 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 as auditors for ten consecutive years, the board, acting on the recommendation of its Audit and Risk Management Committee, has resolved to propose ShineWing Certified Public Accountants as the company’s 2026 domestic and internal control auditor and Shinewing (HK) CPA Limited as its 2026 international auditor, subject to shareholder approval and completion of acceptance procedures. KPMG will retire upon completing the audit of the company’s 2025 annual results and the publication of the 2025 annual report, with both the company and KPMG confirming there are no disagreements over work arrangements, fees or audit opinions, signalling a routine rotation that underscores regulatory compliance and continuity in financial oversight for investors and other stakeholders.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$6.00 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 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 determine which H share investors are eligible to attend and vote at the meeting, the company will close its H share register from 11 February to 2 March 2026, requiring all share transfer documents and relevant certificates to be lodged with its Hong Kong share registrar by 4:30 p.m. on 10 February 2026; this timetable is important for shareholders seeking to exercise governance rights and may influence short‑term trading or transfer decisions around the record date.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$6.00 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 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 King Ho, Guo Wei, Zhang Junsheng and Zhu Haiping, as well as employee director Zhang Tao. The airline also detailed the membership structure of its five board committees — Audit and Risk Management, Remuneration and Assessment, Nomination, Strategic and Investment, and Aviation Safety — clarifying which directors chair and serve on each, a move that enhances transparency in corporate governance and signals continued focus on strategic oversight and aviation safety management for stakeholders.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$6.50 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 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. Zhang, a seasoned aviation executive with legal and management training from Peking University and Quebec University, brings extensive leadership experience from roles within Guizhou Airport Group, Guizhou Airlines, and multiple divisions of China Southern and its parent, including serving as chairman of the labour union and head of the organisation and personnel division; under his new service contract, he will not receive a separate director’s fee, and the company states there are no additional disclosures or relationships relevant to his appointment under Hong Kong listing rules.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$6.50 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 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 international capacity and double‑digit gains across key segments. The passenger load factor edged down 0.53 percentage points to 84.05% as capacity outpaced demand on international routes, while cargo capacity increased 19.28% and cargo and mail traffic grew 10.86%, leading to a 3.95‑point decline in cargo load factor to 51.95%. During the month, the group further strengthened its network by launching new Guangzhou–Jiaxing, Guangzhou–Darwin and Guangzhou–Madrid routes, and expanded and upgraded its fleet by introducing eight new aircraft, including fuel‑efficient A320NEO and A321NEO models and a domestically produced C919, while retiring two older planes, underscoring continued investment in international expansion and operational modernization.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$5.50 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 Capacity and Fleet Expansion
Dec 15, 2025

China Southern Airlines reported an increase in passenger capacity and traffic for November 2025, with domestic, regional, and international routes all showing growth compared to the previous year. The company also expanded its fleet with new aircraft and launched several new routes, indicating a strategic push to enhance its market presence and operational capabilities.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$5.50 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 Strengthens Governance with New Audit and Risk Management Committee
Dec 12, 2025

China Southern Airlines has established an Audit and Risk Management Committee to enhance its corporate governance structure. This committee is tasked with overseeing the company’s audit processes, internal controls, and risk management systems, aiming to ensure sustainable and healthy development. The committee’s formation reflects the company’s commitment to strengthening decision-making and supervision by the board, which could positively impact its operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$5.50 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 Renews Asset Lease Agreements with CSAH
Dec 12, 2025

China Southern Airlines has entered into a New Asset Lease Framework Agreement with CSAH to consolidate and renew its existing property, land, and equipment asset leases. This agreement, effective from January 1, 2026, to December 31, 2028, aims to streamline operations and ensure compliance with the Listing Rules, impacting various locations in China and overseas.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$5.50 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 Approves Key Resolutions in 2025 EGM
Dec 12, 2025

China Southern Airlines Company Limited held its first extraordinary general meeting of 2025, where all proposed resolutions were passed. Notably, the company decided to abolish its supervisory committee and approved resolutions related to guarantees by Xiamen Airlines and a financial services framework agreement with China Southern Airlines Group Finance Company Limited. The meeting saw significant shareholder participation, with 74.71% of voting shares represented. This development reflects the company’s strategic adjustments and could impact its governance structure and financial operations, potentially influencing stakeholder confidence and market positioning.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$5.50 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 Enhances Governance with New Nomination Committee
Dec 12, 2025

China Southern Airlines has established a Nomination Committee to improve its corporate governance by standardizing the nomination and appointment process for directors and senior management. This move is expected to enhance the board’s composition and ensure the company’s operations align with legal and regulatory standards, ultimately safeguarding the interests of the company and its shareholders.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$5.50 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 Enhances Governance with New Committee
Dec 12, 2025

China Southern Airlines Company Limited has established a Remuneration and Assessment Committee to enhance its corporate governance structure. This committee is tasked with developing assessment standards and remuneration policies for the company’s directors and senior management, ensuring alignment with operational needs and regulatory requirements. The initiative aims to safeguard the interests of the company and its shareholders, reinforcing accountability and integrity within the organization.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$5.50 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 to Approve Key Resolutions
Nov 24, 2025

China Southern Airlines has announced an extraordinary general meeting (EGM) scheduled for December 12, 2025, to discuss and approve several resolutions. These include providing guarantees by Xiamen Airlines for 2026, renewing financial and leasing service agreements, and amending the company’s Articles of Association, including the abolishment of the Supervisory Committee. These changes aim to streamline operations and enhance corporate governance, potentially impacting stakeholders by improving efficiency and aligning with strategic goals.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$5.50 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 Prepares for 2025 Extraordinary General Meeting
Nov 20, 2025

China Southern Airlines Company Limited has announced the closure of its register of members in preparation for its first extraordinary general meeting (EGM) of 2025, scheduled for December 12. This move is aimed at determining the eligibility of H share holders to attend and vote at the EGM, with the register being closed from December 4 to December 12, 2025. This announcement is significant as it outlines the procedural steps for shareholder participation, potentially impacting shareholder engagement and decision-making processes within the company.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$5.50 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 October 2025
Nov 14, 2025

In October 2025, China Southern Airlines reported a 7.53% increase in passenger capacity year-on-year, with notable growth in international routes. The company also saw a rise in cargo operations, with an increase in cargo capacity and traffic. Despite not launching new major routes, the airline expanded its fleet by introducing four new aircraft, enhancing its operational capabilities.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$5.50 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.

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.Date of analysis: Nov 14, 2025