SEHK:1055

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China Southern Airlines

Executive Summary

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


Snowflake Analysis

High growth potential and fair value.


Similar Companies

Share Price & News

How has China Southern Airlines's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1055 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.4%

1055

2.6%

HK Airlines

1.2%

HK Market


1 Year Return

-5.7%

1055

-24.1%

HK Airlines

2.3%

HK Market

Return vs Industry: 1055 exceeded the Hong Kong Airlines industry which returned -24.1% over the past year.

Return vs Market: 1055 underperformed the Hong Kong Market which returned 2.7% over the past year.


Shareholder returns

1055IndustryMarket
7 Day8.4%2.6%1.2%
30 Day11.4%3.2%6.1%
90 Day26.4%9.3%3.1%
1 Year-5.7%-5.7%-19.4%-24.1%6.6%2.3%
3 Year-20.3%-22.3%-27.9%-34.4%-4.7%-15.1%
5 Year-27.3%-31.7%-35.4%-43.4%19.1%-1.1%

Price Volatility Vs. Market

How volatile is China Southern Airlines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1055 (HK$4.5) is trading below our estimate of fair value (HK$25.46)

Significantly Below Fair Value: 1055 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1055 is unprofitable, so we can't compare its PE Ratio to the XA 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 (0.8x) compared to the XA Airlines industry average (1x).


Next Steps

Future Growth

How is China Southern Airlines forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

112.3%

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 (1.6%).

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 (26% per year) is forecast to grow faster than the Hong Kong market (13.3% per year).

High Growth Revenue: 1055's revenue (26% 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 (5.8%).


Next Steps

Past Performance

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

-31.6%

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 31.6% 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 (-57.1%).


Return on Equity

High ROE: 1055 has a negative Return on Equity (-9.74%), as it is currently unprofitable.


Next Steps

Financial Health

How is China Southern Airlines's financial position?


Financial Position Analysis

Short Term Liabilities: 1055's short term assets (CN¥31.5B) do not cover its short term liabilities (CN¥96.8B).

Long Term Liabilities: 1055's short term assets (CN¥31.5B) do not cover its long term liabilities (CN¥139.5B).


Debt to Equity History and Analysis

Debt Level: 1055's debt to equity ratio (85.2%) is considered high.

Reducing Debt: 1055's debt to equity ratio has reduced from 107.5% to 85.2% over the past 5 years.

Debt Coverage: 1055's debt is well covered by operating cash flow (28.5%).

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


Balance Sheet


Next Steps

Dividend

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

0.70%

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?

6.5yrs

Average management tenure


CEO

Xulun Ma (56 yo)

1.58yrs

Tenure

Mr. Xulun Ma has been President and Executive Director of China Southern Airlines Company Limited sine March 18, 2019. Mr. Ma has been Vice Chairman of China Southern Airlines Company Limited since May 8, ...


Leadership Team

NamePositionTenureCompensationOwnership
Chang Shun Wang
Chairman4.42yrsno datano data
Xulun Ma
Vice Chairman & President1.58yrsno datano data
Wen Sheng Han
Executive Director1.42yrsno datano data
Wei Hua Chen
Chief Legal Adviser16.33yrsCN¥935.40kno data
Liang Su
Chief Economist12.83yrsCN¥370.70kno data
Ji Dong Ren
Executive Vice President11.42yrsCN¥1.03mno data
Zheng Rong Zhang
Executive Vice Presidentno datano datano data
Zhi Xue Wang
Executive Vice President8.17yrsCN¥1.76mno data
Shao Bin Li
Chief Training Officer1.33yrsCN¥935.00kno data
Tong Bin Li
Executive VP & Chief Engineer6.5yrsCN¥1.09mno data
Hua Nan Feng
Chief Operating Officer of Flight Safety6.17yrsCN¥1.72mno data
Ming Hao Luo
Chief Pilot2.58yrsno datano data

6.5yrs

Average Tenure

58yo

Average Age

Experienced Management: 1055's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chang Shun Wang
Chairman4.42yrsno datano data
Xulun Ma
Vice Chairman & President1.58yrsno datano data
Wen Sheng Han
Executive Director1.42yrsno datano data
Shuge Jiao
Independent Non-Executive Director5.33yrsCN¥150.00kno data
Hui Zhong Gu
Independent Non-Executive Director2.83yrsCN¥60.00kno data
Jin Song Tan
Independent Non-Executive Director6.83yrsCN¥150.00kno data
Jia Shi Li
Chairman of Supervisory committee1.42yrsCN¥768.00kno data
Fan Zheng
Independent Non-Executive Director2.83yrsCN¥60.00kno data
Juan Mao
Supervisor2.83yrsno datano data
Xiao Chun Lin
Shareholder Representative Supervisor1.42yrsno datano data

2.8yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 1055's board of directors are not considered experienced ( 2.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25%.


Top Shareholders

Company Information

China Southern Airlines Company Limited's company bio, 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$94.828b
  • Shares outstanding: 15.33b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZNHNYSE (New York Stock Exchange)SPON ADR CL HUSUSDJul 1997
ZNHDB (Deutsche Boerse AG)SPON ADR CL HDEEURJul 1997
CHKI.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJul 1997
1055SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJul 1997
ZNHHDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJul 1997
1055SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJul 1997
1055SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJul 1997
600029SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJul 2003
600029XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJul 2003

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 12:41
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.