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Air China
(0753)
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Rating:46Neutral
Price Target:
HK$3.50
â–¼(-13.37% Downside)
Action:Reiterated
Date:09/07/26
The score is primarily constrained by balance-sheet risk (high leverage) and uneven core profitability despite revenue recovery and positive cash generation. Technicals add further pressure as the stock trades below key moving averages with negative momentum, while valuation metrics are weakened by a negative P/E and no provided dividend yield.
Positive Factors
Revenue Recovery
Strong revenue recovery indicates that passenger and cargo demand has rebuilt meaningfully after the downturn. Continued top-line expansion can improve aircraft utilization, spread fixed operating costs across more capacity, and support earnings normalization if profitability converts with scale.
Negative Factors
High Leverage
Very high leverage leaves Air China with limited balance-sheet protection if industry conditions weaken. A small equity cushion increases financial risk, while substantial debt can constrain investment flexibility and make recovery more dependent on sustained operating improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
Strong revenue recovery indicates that passenger and cargo demand has rebuilt meaningfully after the downturn. Continued top-line expansion can improve aircraft utilization, spread fixed operating costs across more capacity, and support earnings normalization if profitability converts with scale.
Read all positive factors
Air China (0753) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$140.17B
Dividend Yield1.03%
Average Volume (3M)18.55M
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth10.90%
EPS Growth-354.38%
CountryHK
Employees107,795
SectorGeneral
Sector StrengthN/A
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-0.03
Shares Outstanding4,562,683,600
10 Day Avg. Volume20,375,979
30 Day Avg. Volume18,546,585
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)2.49
Price to Sales (P/S)0.63
P/FCF Ratio4.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.72Price Target Upside41.50% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-0.21
Revenue Forecast (FY)HK$192.41B
Air China Business Overview & Revenue Model
Company Description
Air China Limited is a prominent aviation enterprise delivering a comprehensive suite of services, encompassing air passenger transport, air cargo logistics, and diverse airline support functions. Its extensive operational network covers not only ...
How the Company Makes Money
Air China primarily earns revenue by selling air transportation services. Its main revenue stream is passenger revenue, generated from fares paid for seat capacity across its route network (including pricing by cabin class and fare rules) and from...
Air China Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
33
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 271.31B | 167.05B | 166.70B | 141.10B | 52.90B | 74.53B |
| Gross Profit | -1.48B | 1.70B | 8.51B | 7.09B | -29.91B | -11.31B |
| EBITDA | 35.17B | 24.98B | 33.90B | 32.40B | -18.16B | 4.61B |
| Net Income | 3.14B | -1.74B | -237.31M | -1.05B | -45.18B | -18.83B |
Balance Sheet | ||||||
| Total Assets | 352.15B | 343.16B | 345.77B | 335.30B | 295.01B | 298.42B |
| Cash, Cash Equivalents and Short-Term Investments | 15.79B | 16.02B | 22.51B | 15.63B | 11.44B | 16.71B |
| Total Debt | 215.36B | 232.43B | 226.70B | 175.39B | 214.18B | 182.87B |
| Total Liabilities | 295.38B | 303.95B | 304.82B | 300.01B | 273.45B | 232.55B |
| Stockholders Equity | 59.82B | 42.53B | 45.15B | 37.23B | 23.61B | 61.40B |
Cash Flow | ||||||
| Free Cash Flow | 16.01B | 24.48B | 14.44B | 12.65B | -24.40B | 6.81B |
| Operating Cash Flow | 40.88B | 42.05B | 34.55B | 35.42B | -16.76B | 12.89B |
| Investing Cash Flow | -20.00B | -15.08B | -17.86B | -15.25B | -6.87B | -4.45B |
| Financing Cash Flow | -31.91B | -33.65B | -10.56B | -15.85B | 18.10B | 1.71B |
Air China Technical Analysis
Negative
4.04
Price Trends
4.09
Negative
4.42
Negative
5.41
Negative
Market Momentum
-0.10
Positive
40.03
Neutral
40.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0753, the sentiment is Negative. The current price of 4.04 is above the 20-day moving average (MA) of 3.92, below the 50-day MA of 4.09, and below the 200-day MA of 5.41, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 40.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0753.
Air China Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$88.18B | 6.97 | 22.72% | 6.18% | 19.66% | 35.67% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
46 Neutral | HK$140.17B | -44.76 | -4.67% | 1.03% | 10.90% | -354.38% | |
45 Neutral | HK$82.86B | -33.08 | -6.17% | 1.87% | 13.21% | -12.05% | |
41 Neutral | HK$93.33B | -60.68 | -3.74% | 1.05% | 12.27% | 33.88% |
* General Sector Average
HK:0753
Air China
3.82
-1.38
-26.49%
HK:0293
Cathay Pacific Airways
14.57
4.66
47.08%
HK:1055
China Southern Airlines Company Limited Class H
3.08
-0.71
-18.73%
HK:0670
China Eastern Airlines Corporation Limited Class H
2.74
-0.26
-8.67%
Air China Corporate Events
Air China Revenue Rises but Loss Widens on Surging Costs in First Half 2026
Aug 30, 2026
Air China reported unaudited interim results for the six months ended 30 June 2026, showing revenue rising to RMB 89.27 billion from RMB 80.76 billion a year earlier. Other income and gains also increased, lifting total operating income to RMB 92....
Air China Posts July Traffic Gains With Strong International Passenger Growth
Aug 14, 2026
Air China reported solid operational growth for July 2026, with combined passenger capacity up 4.8% year on year and passenger traffic rising 11.2%. Domestic routes saw capacity increase 3.9% and traffic 9.6%, while international routes posted str...
Air China Sets Board Meeting to Approve 2026 Interim Results
Aug 14, 2026
Air China Limited, a leading Chinese airline listed in Hong Kong, offers passenger and cargo air transport services across domestic and international routes. Operating as a joint stock company with limited liability, it plays a significant role in...
Air China and Shenzhen Airlines Announce Major Airbus Fleet Expansion
Jul 17, 2026
Air China has agreed to purchase 15 Airbus A350-900 wide-body aircraft and its subsidiary Shenzhen Airlines will acquire 40 Airbus A320NEO series jets from Airbus, under agreements signed on 17 July 2026. The deal, classified as a major transactio...
Air China Updates Articles After Major A-Share Issuance Boosts Capital
Jul 17, 2026
Air China has completed the issuance of 3,044,140,030 new A shares to China National Aviation Holding Corporation Limited and China National Aviation Capital Holding Co., Ltd., increasing its total share capital from 17,448,421,000 to 20,492,561,0...
Air China Flags Wider First-Half 2026 Loss as High Fuel Costs Bite
Jul 14, 2026
Air China has warned investors that it expects to post a net loss attributable to equity holders of about RMB2.1 billion to RMB2.6 billion for the first half of 2026, with an even larger loss after excluding non-recurring items. This compares with...
Air China Posts Lower June Capacity but Higher Load Factors as It Tweaks Network and Fleet
Jul 14, 2026
Air China reported a mixed operational performance for June 2026, with overall passenger capacity down 6.1% and passenger traffic down 2.9% year on year, driven mainly by declines in domestic and regional routes. International routes were a bright...
Air China Names Veteran Finance Executive Fu Fangxing as Chief Accountant
Jun 29, 2026
Air China has strengthened its financial leadership by appointing veteran aviation finance executive Fu Fangxing as Chief Accountant, effective 29 June 2026, following approval by its Nomination and Audit and Risk Management Committees. Fu, a 52-y...
Air China Signs Second Capital Increase Deal for Shenzhen Airlines
Jun 12, 2026
Air China has executed a Second Capital Increase Agreement to inject additional capital into Shenzhen Airlines, alongside Shenzhen International Logistics and Kunhang Investment, under the same terms previously disclosed. The move reinforces Air C...
Air China Raises Nearly RMB20 Billion Through Targeted A-Share Issuance
Jun 9, 2026
Air China has completed a private placement of 3,044,140,030 A shares at RMB6.57 each, raising total proceeds of about RMB20 billion and net proceeds of roughly RMB19.99 billion after expenses. The cash-only issuance strengthens the airline’...
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.