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China Southern Airlines Company Limited Class H
(1055)
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Rating:41Neutral
Price Target:
HK$3.00
▼(-9.09% Downside)
Action:Reiterated
Date:09/06/26
The score is primarily held back by below-average financial resilience driven by very high leverage and weak free cash flow despite strong revenue recovery. Technicals add additional downside pressure given a clear downtrend versus key moving averages and negative MACD. Valuation provides limited support because losses make the negative P/E less informative and no dividend yield is available.
Positive Factors
Strong revenue recovery
The substantial revenue recovery indicates that passenger, cargo, and related aviation demand has rebuilt meaningfully. A broader top-line base can improve aircraft utilization and operating leverage, while sustained sales growth provides a foundation for restoring profitability over the next several quarters.
Negative Factors
Very high leverage
The sharp deterioration in debt-to-equity leaves the company with limited balance-sheet flexibility and greater sensitivity to weaker demand or higher operating costs. A large debt load can also constrain investment, increase financing pressure, and slow the process of rebuilding durable shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue recovery
The substantial revenue recovery indicates that passenger, cargo, and related aviation demand has rebuilt meaningfully. A broader top-line base can improve aircraft utilization and operating leverage, while sustained sales growth provides a foundation for restoring profitability over the next several quarters.
Read all positive factors
China Southern Airlines Company Limited Class H (1055) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$93.33B
Dividend Yield1.05%
Average Volume (3M)11.16M
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth12.27%
EPS Growth33.88%
CountryHK
Employees108,380
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-0.04
Shares Outstanding4,643,997,000
10 Day Avg. Volume12,777,069
30 Day Avg. Volume11,155,002
Financial Highlights & Ratios
PEG Ratio-0.56
Price to Book (P/B)2.20
Price to Sales (P/S)0.43
P/FCF Ratio3.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$4.12Price Target Upside24.77% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.22
Revenue Forecast (FY)HK$199.54B
China Southern Airlines Company Limited Class H Business Overview & Revenue Model
Company Description
China Southern Airlines Company Limited is a leading provider of air transport services, operating across the People's Republic of China, including its special administrative regions of Hong Kong and Macau, Taiwan, and numerous international desti...
How the Company Makes Money
China Southern Airlines makes money primarily by selling air transportation and related aviation services. (1) Passenger transportation revenue: The largest source of revenue typically comes from carrying passengers on scheduled flights. Income is...
China Southern Airlines Company Limited Class H Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
28
Negative
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 237.60B | 182.26B | 174.22B | 159.93B | 87.06B | 101.64B |
| Gross Profit | 19.35B | 18.48B | 14.65B | 12.35B | -17.18B | 22.77B |
| EBITDA | 24.64B | 41.46B | 32.35B | 27.69B | -5.36B | 13.90B |
| Net Income | 204.17M | 857.00M | -1.70B | -4.21B | -33.72B | -11.02B |
Balance Sheet | ||||||
| Total Assets | 363.86B | 349.81B | 329.74B | 309.23B | 312.25B | 323.21B |
| Cash, Cash Equivalents and Short-Term Investments | 10.34B | 19.83B | 18.69B | 13.08B | 19.89B | 21.46B |
| Total Debt | 254.72B | 167.17B | 171.46B | 171.12B | 214.54B | 199.02B |
| Total Liabilities | 312.39B | 294.80B | 277.14B | 257.23B | 256.89B | 238.70B |
| Stockholders Equity | 30.32B | 35.58B | 34.73B | 36.78B | 41.27B | 67.85B |
Cash Flow | ||||||
| Free Cash Flow | 1.83B | 20.44B | 15.31B | 28.77B | -14.15B | -9.45B |
| Operating Cash Flow | 39.21B | 38.21B | 31.45B | 40.13B | -2.45B | 7.69B |
| Investing Cash Flow | -36.90B | -19.21B | -16.45B | -17.51B | -5.85B | -15.82B |
| Financing Cash Flow | -7.70B | -22.57B | -11.55B | -33.01B | 299.00M | 4.19B |
China Southern Airlines Company Limited Class H Technical Analysis
Negative
3.30
Price Trends
3.32
Negative
3.59
Negative
4.46
Negative
Market Momentum
-0.09
Positive
36.93
Neutral
30.86
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 3.3 is above the 20-day moving average (MA) of 3.15, below the 50-day MA of 3.32, and below the 200-day MA of 4.46, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 36.93 is Neutral, neither overbought nor oversold. The STOCH value of 30.86 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$88.18B | 6.97 | 22.72% | 6.18% | 19.66% | 35.67% | |
68 Neutral | HK$177.91B | 14.57 | 10.86% | 3.58% | 10.46% | -0.16% | |
67 Neutral | HK$48.50B | 12.31 | 9.26% | 7.14% | -3.80% | 0.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
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% |
* Industrials Sector Average
HK:1055
China Southern Airlines Company Limited Class H
3.03
-0.76
-20.05%
HK:0753
Air China
3.75
-1.42
-27.42%
HK:0293
Cathay Pacific Airways
14.28
4.43
44.97%
HK:0598
Sinotrans
4.67
0.16
3.62%
HK:0670
China Eastern Airlines Corporation Limited Class H
2.71
-0.27
-8.92%
HK:6936
S.F. Holding Co., Ltd. Class H
29.58
-7.69
-20.63%
China Southern Airlines Company Limited Class H Corporate Events
China Southern Airlines Publishes Unaudited 2026 Interim Results for H-Shareholders
Aug 28, 2026
China Southern Airlines has released its unaudited interim results for the six months ended 30 June 2026, making the full interim report available on the HKEXnews website and the company’s own site. The printed 2026 interim report will be se...
China Southern Airlines Sets Board Meeting to Review Interim Results and Potential Dividend
Aug 14, 2026
China Southern Airlines Company Limited has scheduled a board meeting for Friday, 28 August 2026 to review and approve its interim results for the six months ended 30 June 2016. The board will also consider the possible declaration of an interim d...
China Southern Airlines Posts July Traffic Gains and Expands Next‑Gen Fleet
Aug 14, 2026
China Southern Airlines reported solid traffic growth for July 2026, with passenger capacity up 4.23% year on year and revenue passenger kilometres rising 5.25%. Domestic and international routes drove the expansion, lifting the overall passenger ...
China Southern Airlines Wins SSE Nod for Targeted A-Share Issue, Awaits CSRC Approval
Aug 13, 2026
China Southern Airlines has received a review opinion from the Shanghai Stock Exchange confirming that its application to issue up to 5.44 billion new A shares to no more than 35 specific investors meets issuance, listing and disclosure requiremen...
China Southern’s June Data Show Domestic Softness, International Growth and Fleet Upgrade
Jul 15, 2026
China Southern Airlines reported softer overall traffic in June 2026, with passenger capacity down 1.18% year-on-year and revenue passenger kilometers falling 2.48%, driven by declines on domestic and regional routes. International operations were...
China Southern Airlines Flags Sharp First-Half 2026 Loss on Fuel Cost Surge
Jul 14, 2026
China Southern Airlines has warned that it expects to post a net loss attributable to shareholders of about RMB 3.473 billion to RMB 3.973 billion for the first half of 2026, with an even larger loss after excluding non-recurring items. This marks...
China Southern Airlines Gains SSE Acceptance for Major A-Share Issuance
Jul 6, 2026
China Southern Airlines Company Limited has announced that the Shanghai Stock Exchange has formally accepted its application to issue up to 5,436,289,835 new A shares to no more than 35 specific investors. The exchange confirmed that the prospectu...
China Southern’s CSA Cargo Orders Seven Boeing 777 Freighters With Options for More
Jun 26, 2026
China Southern Airlines’ 55%-owned subsidiary CSA Cargo has agreed to buy five new Boeing 777-8F freighters and two 777F aircraft from Boeing, while securing options to acquire three additional 777-8Fs. The deal, classed as a discloseable tr...
China Southern Sees Domestic Softness but International and Cargo Segments Firm in May
Jun 15, 2026
China Southern Airlines reported that its overall passenger capacity and traffic declined in May 2026 versus a year earlier, driven by sharp drops on domestic and regional routes, while international capacity and demand continued to grow. The pass...
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.