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

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

Compare
7 Followers

Top Page

HK:1055

China Southern Airlines Company Limited Class H

(1055)

Select Model
Select Model
Select Model
Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
HK$4.00
▲(2.04% Upside)
The overall stock score is primarily influenced by financial performance challenges, including declining revenues and high leverage. While technical analysis shows positive momentum, the negative valuation metrics due to ongoing unprofitability weigh heavily on the stock's attractiveness.
Positive Factors
Market Position
As a leading airline in Asia, China Southern Airlines benefits from a strong market position, providing a competitive edge in passenger and cargo transportation.
Revenue Diversification
The company's diversified revenue streams, including cargo and ancillary services, help mitigate risks associated with fluctuations in passenger demand.
Route Network
A broad route network enhances the company's ability to capture international and domestic market share, supporting long-term growth.
Negative Factors
High Leverage
Significant leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.
Negative Cash Flow
Negative cash flow indicates challenges in sustaining operations and funding future investments, affecting long-term financial health.
Declining Revenue
Declining revenue suggests difficulties in maintaining market share and pricing power, which could hinder future profitability and growth.

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 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
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
Positive
Last Price3.92
Price Trends
50DMA
3.84
Positive
100DMA
3.81
Positive
200DMA
3.76
Positive
Market Momentum
MACD
0.04
Negative
RSI
51.13
Neutral
STOCH
38.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1055, the sentiment is Positive. The current price of 3.92 is above the 20-day moving average (MA) of 3.88, above the 50-day MA of 3.84, and above the 200-day MA of 3.76, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 51.13 is Neutral, neither overbought nor oversold. The STOCH value of 38.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
66
Neutral
HK$70.57B6.8818.83%6.53%8.54%16.57%
54
Neutral
HK$106.83B-6.44%1.42%
50
Neutral
HK$91.89B-21.95-10.43%4.61%38.36%
45
Neutral
HK$134.65B132.46-0.53%4.08%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1055
China Southern Airlines Company Limited Class H
3.92
0.21
5.66%
HK:0753
Air China
5.55
1.21
27.88%
HK:0293
Cathay Pacific Airways
10.57
2.76
35.39%
HK:0670
China Eastern Airlines Corporation Limited Class H
3.08
0.69
28.87%

China Southern Airlines Company Limited Class H Corporate Events

China Southern Airlines Proposes Governance Restructuring
Aug 28, 2025

China Southern Airlines Company Limited has announced proposed amendments to its Articles of Association and procedural rules, alongside the abolishment of its Supervisory Committee. These changes, approved by the board, will transfer the statutory functions and powers of the Supervisory Committee to the Audit and Risk Management Committee, reflecting compliance with the Company Law and regulatory guidelines. The resolutions will be presented at an extraordinary general meeting for shareholder consideration, potentially impacting the company’s governance structure and operational oversight.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$3.50 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 Proposes New Executive Director Appointment
Aug 28, 2025

China Southern Airlines Company Limited has announced the proposed appointment of Mr. Gao Fei as an Executive Director for the 10th session of its Board of Directors. This appointment, recommended by the Nomination Committee, is pending approval at the company’s general meeting. Mr. Gao has a strong background in aviation management and has held various leadership roles within the company, which positions him as a valuable asset for the company’s strategic direction. The announcement underscores the company’s commitment to strengthening its leadership team to enhance its operational and strategic capabilities.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$3.50 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 Releases 2025 Interim Results
Aug 28, 2025

China Southern Airlines Company Limited has announced its unaudited interim results for the first half of 2025. The results, which comply with the Hong Kong Stock Exchange’s listing rules, are available online and will be distributed in print to registered H share holders. This announcement reflects the company’s ongoing transparency and commitment to its stakeholders.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$3.50 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 July 2025
Aug 15, 2025

In July 2025, China Southern Airlines reported a significant increase in passenger capacity and traffic, with notable growth in international routes. The passenger load factor improved slightly, while cargo operations saw a modest increase in capacity and traffic. The company expanded its fleet by introducing eight new aircraft and launched a new major route, demonstrating its commitment to growth and operational enhancement.

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 Schedules Board Meeting for Interim Results Review
Aug 15, 2025

China Southern Airlines has announced that its board of directors will convene on August 28, 2025, to review and approve the interim financial results for the first half of the year ending June 30, 2025. The meeting will also consider the potential distribution of an interim dividend, reflecting the company’s ongoing efforts to maintain shareholder value and financial transparency.

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 June 2025
Jul 15, 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
Jul 14, 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
Jun 16, 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.

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: Sep 18, 2025