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

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HK:1055

China Southern Airlines Company Limited Class H

(1055)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
HK$5.00
▼(-4.94% Downside)
The overall stock score is primarily impacted by financial performance challenges, including declining revenues and high leverage. While technical analysis shows positive momentum, the stock appears overbought. Valuation concerns due to negative profitability further weigh down the score.
Positive Factors
Extensive Network
A vast network enhances market reach and customer access, supporting long-term revenue growth through increased passenger and cargo volumes.
SkyTeam Alliance Membership
Membership in a global alliance strengthens competitive positioning, offering expanded route options and improved service, attracting more passengers.
Diverse Revenue Streams
Diverse revenue sources provide resilience against market fluctuations, ensuring steady cash flow and supporting long-term financial stability.
Negative Factors
High Leverage
High leverage increases financial risk, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term sustainability.
Negative Profitability Margins
Negative margins indicate operational inefficiencies and financial strain, challenging the company's ability to generate sustainable profits over time.
Cash Flow Constraints
Negative free cash flow limits reinvestment potential and operational flexibility, hindering growth and long-term financial health.

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.
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 Price5.26
Price Trends
50DMA
4.23
Positive
100DMA
4.02
Positive
200DMA
3.83
Positive
Market Momentum
MACD
0.26
Negative
RSI
77.50
Negative
STOCH
84.88
Negative
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 5.26 is above the 20-day moving average (MA) of 4.71, above the 50-day MA of 4.23, and above the 200-day MA of 3.83, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 77.50 is Negative, neither overbought nor oversold. The STOCH value of 84.88 is Negative, 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
67
Neutral
$79.06B7.6717.73%5.70%8.54%16.57%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
56
Neutral
£140.70B140.100.20%4.08%
56
Neutral
HK$113.52B-29.65-7.13%4.61%38.36%
52
Neutral
HK$123.24B-35.98-6.44%1.42%3.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1055
China Southern Airlines Company Limited Class H
5.26
1.87
55.16%
HK:0753
Air China
6.56
2.12
47.75%
HK:0293
Cathay Pacific Airways
12.10
4.57
60.75%
HK:0670
China Eastern Airlines Corporation Limited Class H
4.58
2.29
100.00%

China Southern Airlines Company Limited Class H Corporate Events

China Southern Airlines Reports Strong Q3 2025 Financial Performance
Oct 27, 2025

China Southern Airlines reported its unaudited financial results for the third quarter of 2025, showing a positive performance with an increase in operating revenue and net profit. The company achieved a 3.01% rise in operating revenue to RMB 51,374 million and a significant 20.26% increase in net profit attributable to shareholders, reaching RMB 3,840 million. These results reflect a strong operational performance and improved financial health, suggesting a favorable impact on the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$4.50 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 Financial Services Agreement
Oct 27, 2025

China Southern Airlines Company Limited Class H has entered into a new Financial Services Framework Agreement to continue its financial services with a connected Finance Company for three years starting January 1, 2026. This agreement involves the provision of deposit and loan services, with the deposit services requiring shareholder approval due to its significant financial implications, while the loan services are exempt from such requirements.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$4.50 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 Finance and Lease Agreement with CSA Leasing
Oct 27, 2025

China Southern Airlines has entered into a new Finance and Lease Service Framework Agreement with CSA Leasing for the period 2026-2028, renewing their previous agreement. This agreement involves the continuation of finance and operating lease services for aircraft and related equipment, as well as the sale and purchase of aviation materials between the two entities. The transactions are classified as continuing connected transactions and major transactions under Hong Kong’s Listing Rules, requiring disclosure, annual review, and independent shareholder approval. This strategic move aims to optimize the company’s operational capabilities and align with shareholder interests.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$4.50 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 Authorizes Guarantees for Xiamen Airlines Subsidiaries
Oct 27, 2025

China Southern Airlines Company Limited has authorized Xiamen Airlines to provide guarantees to its subsidiaries, including Hebei Airlines and various Xiamen Airlines leasing entities. The guarantees, totaling up to RMB 5,759 million, are within the expected amounts and do not require counter-guarantees. This move is part of the company’s strategic financial management, potentially enhancing operational flexibility and supporting subsidiary growth.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$4.50 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 Executive Director Candidate Resignation
Oct 27, 2025

China Southern Airlines announced the resignation of Mr. Gao Fei as a candidate for Executive Director due to a change in work arrangement, effective October 27, 2025. The board expressed gratitude for Mr. Gao’s contributions, and the resolution for his appointment will not be presented at the general meeting. This change in leadership is not expected to impact the company’s operations or stakeholder interests significantly.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$4.50 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 Senior Management Changes
Oct 27, 2025

China Southern Airlines Company Limited announced significant changes in its senior management team following a board meeting on October 27, 2025. Mr. Chen Zhe and Mr. Zhang Yong have been appointed as Executive Vice Presidents, while Mr. Yu Ming Liang has been named the Chief Pilot. Concurrently, Mr. Gao Fei has resigned from his position as Executive Vice President and candidate for Executive Director due to a change in work arrangements. The board expressed gratitude for Mr. Gao’s contributions during his tenure.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$4.50 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 Schedules Board Meeting to Review Q3 Financial Results
Oct 15, 2025

China Southern Airlines Company Limited has announced a board meeting scheduled for October 27, 2025, to review and approve the company’s third-quarter financial results for the period ending September 30, 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the remainder of the year.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$4.00 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 Reports Growth in Passenger and Cargo Operations for September 2025
Oct 15, 2025

In September 2025, China Southern Airlines reported a year-on-year increase in passenger capacity and traffic, with domestic and international routes showing significant growth. The passenger load factor also improved, indicating better utilization of available seats. Cargo operations saw a modest increase in capacity and traffic, with a slight improvement in load factor. The company introduced seven new aircraft to its fleet and disposed of three, maintaining a total of 956 commercial aircraft. No new major routes were launched during this period.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$4.00 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 Reports Growth in Passenger and Cargo Operations for August 2025
Sep 15, 2025

In August 2025, China Southern Airlines reported a 6.37% year-on-year increase in passenger capacity, with notable growth in international routes. Despite a slight decrease in the overall passenger load factor, cargo operations showed improvement with a 5.48% rise in traffic and a higher load factor. The company introduced seven new aircraft to its fleet, enhancing its operational capabilities.

The most recent analyst rating on (HK:1055) stock is a Hold with a HK$3.60 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 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.

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 04, 2025