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753

Air ChinaSEHK:753 Stock Report

Market Cap

HK$119.9b

7D

-7.9%

1Y

-26.8%

Updated

02 Dec, 2021

Data

Company Financials +
753 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health0/6
Dividends0/6

753 Stock Overview

Air China Limited, together with its subsidiaries, provides air passenger, air cargo, and airline-related services in Mainland China, Hong Kong, Macau, Taiwan, Europe, North America, Japan, Korea, the Asia Pacific, and internationally.

Air China Competitors

United Parcel Service

NYSE:UPS

US$168.7b

FedEx

NYSE:FDX

US$60.5b

Delta Air Lines

NYSE:DAL

US$21.4b

Ryanair Holdings

ISE:RY4C

€16.9b

Price History & Performance

Summary of all time highs, changes and price drops for Air China
Historical stock prices
Current Share PriceHK$4.89
52 Week HighHK$7.44
52 Week LowHK$4.67
Beta1.53
1 Month Change-7.56%
3 Month Change-8.43%
1 Year Change-26.80%
3 Year Change-33.83%
5 Year Change-5.96%
Change since IPO51.63%

Recent News & Updates

Nov 02
Is Air China (HKG:753) Using Debt Sensibly?

Is Air China (HKG:753) Using Debt Sensibly?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

753HK AirlinesHK Market
7D-7.9%-5.9%-1.4%
1Y-26.8%-2.7%-5.9%

Return vs Industry: 753 underperformed the Hong Kong Airlines industry which returned -0.8% over the past year.

Return vs Market: 753 underperformed the Hong Kong Market which returned -6.4% over the past year.

Price Volatility

Is 753's price volatile compared to industry and market?
753 volatility
753 Average Weekly Movement4.5%
Airlines Industry Average Movement4.9%
Market Average Movement6.8%
10% most volatile stocks in HK Market13.4%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 753 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 753's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198888,481n/ahttps://www.airchina.com.cn

Air China Limited, together with its subsidiaries, provides air passenger, air cargo, and airline-related services in Mainland China, Hong Kong, Macau, Taiwan, Europe, North America, Japan, Korea, the Asia Pacific, and internationally. The company operates through Airline Operations and Other Operations segments. It provides aircraft engineering and airport ground handling services.

Air China Fundamentals Summary

How do Air China's earnings and revenue compare to its market cap?
753 fundamental statistics
Market CapCN¥98.03b
Earnings (TTM)-CN¥14.62b
Revenue (TTM)CN¥78.51b

0.7x

P/S Ratio

-4.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
753 income statement (TTM)
RevenueCN¥78.51b
Cost of RevenueCN¥85.87b
Gross Profit-CN¥7.36b
ExpensesCN¥7.26b
Earnings-CN¥14.62b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.01
Gross Margin-9.38%
Net Profit Margin-18.62%
Debt/Equity Ratio125.7%

How did 753 perform over the long term?

See historical performance and comparison

Valuation

Is Air China 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: 753 (HK$4.89) is trading below our estimate of fair value (HK$13.38)

Significantly Below Fair Value: 753 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 753 is unprofitable, so we can't compare its PE Ratio to the Asian Airlines industry average.

PE vs Market: 753 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 753's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 753 is good value based on its PB Ratio (0.9x) compared to the XA Airlines industry average (2x).


Future Growth

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

111.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 753 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 753 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 753's is expected to become profitable in the next 3 years.

Revenue vs Market: 753's revenue (27.2% per year) is forecast to grow faster than the Hong Kong market (12.4% per year).

High Growth Revenue: 753's revenue (27.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 753's Return on Equity is forecast to be low in 3 years time (6.5%).


Past Performance

How has Air China performed over the past 5 years?

-58.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 753 is currently unprofitable.

Growing Profit Margin: 753 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 753 is unprofitable, and losses have increased over the past 5 years at a rate of 58.3% per year.

Accelerating Growth: Unable to compare 753's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 753 is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (12.9%).


Return on Equity

High ROE: 753 has a negative Return on Equity (-22.08%), as it is currently unprofitable.


Financial Health

How is Air China's financial position?


Financial Position Analysis

Short Term Liabilities: 753's short term assets (CN¥22.5B) do not cover its short term liabilities (CN¥81.9B).

Long Term Liabilities: 753's short term assets (CN¥22.5B) do not cover its long term liabilities (CN¥132.4B).


Debt to Equity History and Analysis

Debt Level: 753's net debt to equity ratio (112.7%) is considered high.

Reducing Debt: 753's debt to equity ratio has increased from 76.5% to 125.7% over the past 5 years.

Debt Coverage: 753's debt is not well covered by operating cash flow (14.5%).

Interest Coverage: Insufficient data to determine if 753's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Air China current dividend yield, its reliability and sustainability?

0.76%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 753's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 753'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 753's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 753's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 753 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 753'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?

5.6yrs

Average management tenure


CEO

Air China has no CEO, or we have no data on them.


Leadership Team

Experienced Management: 753's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: 753's board of directors are not considered experienced ( 1.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Air China Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Air China Limited
  • Ticker: 753
  • Exchange: SEHK
  • Founded: 1988
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: HK$119.949b
  • Shares outstanding: 14.52b
  • Website: https://www.airchina.com.cn

Number of Employees


Location

  • Air China Limited
  • Building 1
  • 1st Floor – 9th Floor 101
  • Beijing
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 16:02
End of Day Share Price2021/12/02 00:00
Earnings2021/09/30
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.