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1055

China Southern AirlinesSEHK:1055 Stock Report

Market Cap

HK$120.4b

7D

-1.0%

1Y

6.2%

Updated

22 Oct, 2021

Data

Company Financials +
1055 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health1/6
Dividends0/6

1055 Overview

China Southern Airlines Company Limited provides airline transportation services in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally.

China Southern Airlines Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Southern Airlines
Historical stock prices
Current Share PriceHK$4.78
52 Week HighHK$3.89
52 Week LowHK$6.30
Beta1.53
1 Month Change12.21%
3 Month Change7.42%
1 Year Change6.22%
3 Year Change15.74%
5 Year Change12.74%
Change since IPO47.08%

Recent News & Updates

Sep 25
A Look At The Fair Value Of China Southern Airlines Company Limited (HKG:1055)

A Look At The Fair Value Of China Southern Airlines Company Limited (HKG:1055)

In this article we are going to estimate the intrinsic value of China Southern Airlines Company Limited ( HKG:1055 ) by...

Aug 30
Is It Time To Consider Buying China Southern Airlines Company Limited (HKG:1055)?

Is It Time To Consider Buying China Southern Airlines Company Limited (HKG:1055)?

Today we're going to take a look at the well-established China Southern Airlines Company Limited ( HKG:1055 ). The...

Aug 03
Is China Southern Airlines (HKG:1055) Using Debt Sensibly?

Is China Southern Airlines (HKG:1055) Using Debt Sensibly?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jun 12
Calculating The Intrinsic Value Of China Southern Airlines Company Limited (HKG:1055)

Calculating The Intrinsic Value Of China Southern Airlines Company Limited (HKG:1055)

How far off is China Southern Airlines Company Limited ( HKG:1055 ) from its intrinsic value? Using the most recent...

Shareholder Returns

1055HK AirlinesHK Market
7D-1.0%-2.9%2.1%
1Y6.2%19.2%5.9%

Return vs Industry: 1055 underperformed the Hong Kong Airlines industry which returned 19.3% over the past year.

Return vs Market: 1055 matched the Hong Kong Market which returned 5.7% over the past year.

Price Volatility

Is 1055's price volatile compared to industry and market?
1055 volatility
1055 Beta1.53
Industry Beta1.05
Market Beta1

Stable Share Price: 1055 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1055's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199598,347Wen Sheng Hanhttps://www.csair.com

China Southern Airlines Company Limited provides airline transportation services in the People’s Republic of China, Hong Kong, Macau, Taiwan, and internationally. It operates through two segments, Airline Transportation Operations and Other Segments. The company offers passenger, cargo, mail delivery, and other extended transportation services.

China Southern Airlines Fundamentals Summary

How do China Southern Airlines's earnings and revenue compare to its market cap?
1055 fundamental statistics
Market CapCN¥99.02b
Earnings (TTM)-CN¥7.36b
Revenue (TTM)CN¥105.17b

0.7x

P/S Ratio

-9.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1055 income statement (TTM)
RevenueCN¥105.17b
Cost of RevenueCN¥103.68b
Gross ProfitCN¥1.49b
ExpensesCN¥8.85b
Earnings-CN¥7.36b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 29, 2021

Earnings per share (EPS)-0.42
Gross Margin1.42%
Net Profit Margin-6.99%
Debt/Equity Ratio87.7%

How did 1055 perform over the long term?

See historical performance and comparison

Valuation

Is China Southern Airlines undervalued compared to its fair value and its price relative to the market?

16.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1055 (HK$4.78) is trading below our estimate of fair value (HK$5.74)

Significantly Below Fair Value: 1055 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1055 is unprofitable, so we can't compare its PE Ratio to the Asian Airlines industry average.

PE vs Market: 1055 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1055's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1055 is good value based on its PB Ratio (0.9x) compared to the XA Airlines industry average (1.7x).


Future Growth

How is China Southern Airlines forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

111.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1055 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 1055 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1055's is expected to become profitable in the next 3 years.

Revenue vs Market: 1055's revenue (20.5% per year) is forecast to grow faster than the Hong Kong market (12.5% per year).

High Growth Revenue: 1055's revenue (20.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1055's Return on Equity is forecast to be low in 3 years time (6.9%).


Past Performance

How has China Southern Airlines performed over the past 5 years?

-59.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1055 is currently unprofitable.

Growing Profit Margin: 1055 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1055 is unprofitable, and losses have increased over the past 5 years at a rate of 59.8% per year.

Accelerating Growth: Unable to compare 1055's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1055 is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (-92.2%).


Return on Equity

High ROE: 1055 has a negative Return on Equity (-6.85%), as it is currently unprofitable.


Financial Health

How is China Southern Airlines's financial position?


Financial Position Analysis

Short Term Liabilities: 1055's short term assets (CN¥40.0B) do not cover its short term liabilities (CN¥103.2B).

Long Term Liabilities: 1055's short term assets (CN¥40.0B) do not cover its long term liabilities (CN¥131.6B).


Debt to Equity History and Analysis

Debt Level: 1055's debt to equity ratio (87.7%) is considered high.

Reducing Debt: 1055's debt to equity ratio has increased from 84.6% to 87.7% over the past 5 years.

Debt Coverage: 1055's debt is well covered by operating cash flow (26.5%).

Interest Coverage: Insufficient data to determine if 1055's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is China Southern Airlines's current dividend yield, its reliability and sustainability?

0.83%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1055's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1055's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1055's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1055's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1055 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1055's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.2yrs

Average management tenure


CEO

Wen Sheng Han (54 yo)

0.33

Tenure

Mr. Wen Sheng Han has been the President and Vice Chairman of China Southern Airlines Company Limited since June 22, 2021. He has been Executive Director of China Southern Airlines Company Limited since Ma...


Leadership Team

Experienced Management: 1055's management team is seasoned and experienced (7.2 years average tenure).


Board Members

Experienced Board: 1055's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.5%.


Top Shareholders

Company Information

China Southern Airlines Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: China Southern Airlines Company Limited
  • Ticker: 1055
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: HK$120.412b
  • Shares outstanding: 17.56b
  • Website: https://www.csair.com

Number of Employees


Location

  • China Southern Airlines Company Limited
  • China Southern Air Building
  • 68 Qixin Road
  • Guangzhou
  • Guangdong Province
  • 510403
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:30
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.