Loading...

Air China

SEHK:753
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
753
SEHK
HK$140B
Market Cap
  1. Home
  2. HK
  3. Transportation
Company description

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 last earnings update was 83 days ago. More info.


Add to Portfolio Compare Print
  • Air China has significant price volatility in the past 3 months.
753 Share Price and Events
7 Day Returns
3.8%
SEHK:753
0.4%
Asia Airlines
1.5%
HK Market
1 Year Returns
16.4%
SEHK:753
6.6%
Asia Airlines
-4.7%
HK Market
753 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Air China (753) 3.8% 14.6% -18.8% 16.4% 39.8% 71.2%
Asia Airlines 0.4% 3.6% -14.6% 6.6% 18.6% 45.7%
HK Market 1.5% 3.9% -8.2% -4.7% 18.3% 3.4%
1 Year Return vs Industry and Market
  • 753 outperformed the Airlines industry which returned 6.6% over the past year.
  • 753 outperformed the Market in Hong Kong which returned -4.7% over the past year.
Price Volatility
753
Industry
5yr Volatility vs Market

Value

 Is Air China undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Air China to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Air China.

SEHK:753 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:753
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Airlines Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.861 (1 + (1- 25%) (95.57%))
1.321
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.32
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.321 * 5.96%)
9.87%

Discounted Cash Flow Calculation for SEHK:753 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Air China is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:753 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 9.87%)
2020 18,551.67 Analyst x3 16,884.59
2021 16,991.00 Analyst x4 14,074.54
2022 18,108.00 Analyst x1 13,651.91
2023 19,561.00 Analyst x1 13,422.13
2024 19,988.84 Est @ 2.19% 12,483.20
2025 20,414.99 Est @ 2.13% 11,603.66
2026 20,842.33 Est @ 2.09% 10,782.01
2027 21,272.98 Est @ 2.07% 10,015.88
2028 21,708.48 Est @ 2.05% 9,302.47
2029 22,150.03 Est @ 2.03% 8,638.74
Present value of next 10 years cash flows CN¥120,859.14
SEHK:753 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥22,150.03 × (1 + 2%) ÷ (9.87% – 2%)
CN¥287,073.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥287,073.52 ÷ (1 + 9.87%)10
CN¥111,961.70
SEHK:753 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥120,859.14 + CN¥111,961.70
CN¥232,820.84
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥232,820.84 / 14,524.82
CN¥16.03
SEHK:753 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:753)
1.137
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥16.03 x 1.137
HK$18.22
Value per share (HKD) From above. HK$18.22
Current discount Discount to share price of HK$8.15
= -1 x (HK$8.15 - HK$18.22) / HK$18.22
55.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Air China is available for.
Intrinsic value
>50%
Share price is HK$8.15 vs Future cash flow value of HK$18.22
Current Discount Checks
For Air China to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Air China's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Air China's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Air China's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Air China's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:753 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥0.54
SEHK:753 Share Price ** SEHK (2019-07-17) in HKD HK$8.15
SEHK:753 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥7.17
Global Airlines Industry PE Ratio Median Figure of 39 Publicly-Listed Airlines Companies 12.02x
Hong Kong Market PE Ratio Median Figure of 1,510 Publicly-Listed Companies 10.75x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Air China.

SEHK:753 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:753 Share Price ÷ EPS (both in CNY)

= 7.17 ÷ 0.54

13.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Air China is overvalued based on earnings compared to the Global Airlines industry average.
  • Air China is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Air China's expected growth come at a high price?
Raw Data
SEHK:753 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
14.7%per year
Global Airlines Industry PEG Ratio Median Figure of 34 Publicly-Listed Airlines Companies 1.04x
Hong Kong Market PEG Ratio Median Figure of 479 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:753 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.2x ÷ 14.7%

0.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Air China is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Air China's assets?
Raw Data
SEHK:753 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥6.19
SEHK:753 Share Price * SEHK (2019-07-17) in HKD HK$8.15
SEHK:753 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥7.17
Asia Airlines Industry PB Ratio Median Figure of 5 Publicly-Listed Airlines Companies 0.85x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:753 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:753 Share Price ÷ Book Value per Share (both in CNY)

= 7.17 ÷ 6.19

1.16x

* Primary Listing of Air China.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Air China is overvalued based on assets compared to the Asia Airlines industry average.
X
Value checks
We assess Air China's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Airlines industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Airlines industry average (and greater than 0)? (1 check)
  5. Air China has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Air China expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Air China expected to grow at an attractive rate?
  • Air China's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Air China's earnings growth is expected to exceed the Hong Kong market average.
  • Air China's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:753 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:753 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 14.7%
SEHK:753 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 7.3%
Global Airlines Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
Global Airlines Industry Revenue Growth Rate Market Cap Weighted Average 6%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -7.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:753 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:753 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 201,335 44,954 21,780 1
2022-12-31 186,236 41,105 18,573 1
2021-12-31 170,771 32,713 14,154 13
2020-12-31 161,662 34,762 13,459 19
2019-12-31 147,615 27,265 11,064 19
SEHK:753 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 137,722 30,117 7,431
2018-12-31 136,774 31,419 7,336
2018-09-30 132,461 32,143 5,899
2018-06-30 128,225 28,977 7,382
2018-03-31 124,001 31,154 8,402
2017-12-31 121,363 26,389 7,240
2017-09-30 119,012 25,577 7,866
2017-06-30 116,533 28,601 6,683
2017-03-31 115,257 26,378 5,845
2016-12-31 112,677 30,724 6,814
2016-09-30 111,996 27,896 7,720
2016-06-30 111,302 30,965 6,282

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Air China's earnings are expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).
  • Air China's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:753 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Air China Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:753 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.65 1.65 1.65 1.00
2022-12-31 1.41 1.41 1.41 1.00
2021-12-31 1.02 1.23 0.74 10.00
2020-12-31 0.89 1.05 0.67 17.00
2019-12-31 0.76 0.85 0.63 15.00
SEHK:753 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 0.54
2018-12-31 0.53
2018-09-30 0.43
2018-06-30 0.54
2018-03-31 0.62
2017-12-31 0.54
2017-09-30 0.60
2017-06-30 0.52
2017-03-31 0.46
2016-12-31 0.55
2016-09-30 0.63
2016-06-30 0.51

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Air China is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Air China's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Air China has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Air China performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Air China's growth in the last year to its industry (Airlines).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Air China's year on year earnings growth rate has been positive over the past 5 years.
  • Air China's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Air China's 1-year earnings growth is negative, it can't be compared to the Global Airlines industry average.
Earnings and Revenue History
Air China's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Air China Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:753 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 137,721.67 7,430.94 11,188.44 108.48
2018-12-31 136,774.40 7,336.33 11,069.41 107.06
2018-09-30 132,460.92 5,899.21 10,884.54 122.07
2018-06-30 128,224.60 7,382.41 10,774.65 119.58
2018-03-31 124,000.67 8,402.11 10,632.56 115.18
2017-12-31 121,362.90 7,240.31 10,510.07 94.50
2017-09-30 119,011.51 7,865.82 10,013.22 54.36
2017-06-30 116,533.24 6,682.81 9,883.64 36.10
2017-03-31 115,257.25 5,845.12 9,653.61
2016-12-31 112,677.08 6,814.02 9,616.45
2016-09-30 111,995.74 7,720.22 9,686.93
2016-06-30 111,302.30 6,282.36 9,909.27
2016-03-31 110,036.53 7,527.83 10,187.10
2015-12-31 108,929.11 6,774.01 10,220.87
2015-09-30 108,309.39 6,927.40 10,138.11
2015-06-30 106,891.52 7,283.34 10,140.42
2015-03-31 105,750.81 5,406.18 10,210.51
2014-12-31 104,888.26 3,817.41 10,213.35
2014-09-30 102,801.16 2,428.11 10,578.93
2014-06-30 100,917.95 2,683.07 10,549.36
2014-03-31 99,328.07 3,162.73 10,384.46
2013-12-31 97,628.25 3,318.61 10,297.15
2013-09-30 97,317.70 4,754.40 9,637.75
2013-06-30 98,138.51 4,986.39 9,735.91
2013-03-31 99,664.68 4,919.68 9,409.28
2012-12-31 99,840.55 4,910.16 9,334.23
2012-09-30 100,174.42 3,830.79 10,340.85

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Air China has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Air China used its assets less efficiently than the Global Airlines industry average last year based on Return on Assets.
  • Air China's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Air China's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Airlines industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Air China has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Air China's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Air China's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Air China's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Air China's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Air China's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Air China Company Filings, last reported 3 months ago.

SEHK:753 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 97,193.92 36,582.56 6,727.92
2018-12-31 100,556.93 42,780.38 7,807.57
2018-09-30 103,288.59 55,843.38 9,769.64
2018-06-30 98,628.45 54,207.89 9,955.43
2018-03-31 97,592.90 56,535.60 6,666.58
2017-12-31 94,931.83 51,254.39 6,280.01
2017-09-30 94,345.96 61,540.01 12,560.76
2017-06-30 89,133.67 56,072.92 11,681.37
2017-03-31 89,326.10 70,493.18 15,690.34
2016-12-31 76,473.64 63,808.96 7,322.58
2016-09-30 74,654.89 63,116.43 9,420.34
2016-06-30 70,190.20 64,828.78 8,398.53
2016-03-31 69,371.51 59,795.14 8,817.03
2015-12-31 66,595.14 60,277.83 7,794.04
2015-09-30 68,182.07 57,748.47 10,285.05
2015-06-30 64,235.12 73,834.30 9,310.14
2015-03-31 61,424.33 67,744.28 9,052.12
2014-12-31 60,239.81 76,798.33 9,357.08
2014-09-30 60,460.30 67,958.12 10,612.54
2014-06-30 57,423.43 77,181.75 9,165.31
2014-03-31 58,214.11 67,415.21 11,106.97
2013-12-31 57,942.99 81,792.69 15,519.03
2013-09-30 58,285.27 64,371.29 18,572.53
2013-06-30 55,132.90 79,779.06 14,694.04
2013-03-31 55,164.10 67,212.47 14,863.43
2012-12-31 53,654.08 70,586.19 12,603.56
2012-09-30 52,927.32 52,929.08 13,632.72
  • Air China's level of debt (37.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (163.3% vs 37.6% today).
  • Debt is well covered by operating cash flow (82.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.8x coverage).
X
Financial health checks
We assess Air China's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Air China has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.44%
Current annual income from Air China dividends. Estimated to be 2.49% next year.
If you bought HK$2,000 of Air China shares you are expected to receive HK$29 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Air China's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Air China's dividend is below the markets top 25% of dividend payers in Hong Kong (5.75%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:753 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
Global Airlines Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 2.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:753 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.20 12.00
2020-12-31 0.19 18.00
2019-12-31 0.15 18.00
SEHK:753 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-27 0.103 1.447
2018-03-27 0.115 1.731
2017-06-29 0.108 1.557
2016-05-25 0.107 2.116
2015-06-23 0.052 1.062
2014-05-22 0.045 0.962
2013-08-27 0.059 1.468
2013-04-02 0.059 1.294
2012-04-16 0.118 2.663
2011-03-29 0.118 2.190
2009-10-28 0.000 0.000
2009-08-26 0.000 0.000
2009-04-16 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Air China has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Air China has only been paying a dividend for 8 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Air China's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.1x coverage).
X
Income/ dividend checks
We assess Air China's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Air China afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Air China has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Air China's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Zhiyong Song
COMPENSATION CN¥0
AGE 54
TENURE AS CEO 5.5 years
CEO Bio

Mr. Zhiyong Song serves as the Chairman of Executive Board at Aircraft Maintenance and Engineering Corporation. Mr. Song has been the President of Air China Limited since January 28, 2014. He has been an Executive Director of Air China Limited since May 22, 2014. He served as an Assistant to President and also served as the Chief Captain of the Chief Flight Team of Air China Limited (Also known as, Air China International Corporation) from September 2004 to June 2008. He served as the Vice President and a Member of the Communist Party Committee of Air China Limited from October 27, 2006 to December 2010. He served as Captain of the Chief Flight Team and Deputy Secretary of the Communist Party Committee of Air China Limited from November 2002 to June 2008 and served as Assistant to President from September 2004 to October 2006. He has served as the Deputy General Manager and a Member of the Communist Party Committee of China National Aviation Holding Company since December 2010 and President and Deputy Secretary of the Communist Party Committee of Air China since January 2014. He started his career in the China civil aviation industry in 1987 and also served as the Pilot of the Third Group of the Chief Flight Team, the Deputy Captain of the Chief Flight Team and Director of the Training Department of Air China International Corporation. He has been Vice Chairman of Air China Limited since June 6, 2016. He has been a Non-Executive Director of Cathay Pacific Airways Limited since March 14, 2014. He serves as a Director of Cathay Pacific Airways Limited - New Zealand Branch. Mr. Song graduated from Di Er Flying Academy of China Air Force with major in Flying Studies.

CEO Compensation
  • Insufficient data for Zhiyong to compare compensation growth.
  • Zhiyong's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Air China management team in years:

6
Average Tenure
54
Average Age
  • The average tenure for the Air China management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Zhiyong Song

TITLE
Vice Chairman & President
AGE
54
TENURE
5.5 yrs

Tiexiang Liu

TITLE
VP & COO
COMPENSATION
CN¥1M
AGE
52
TENURE
4.3 yrs

Feng Xiao

TITLE
Chief Accountant
AGE
51
TENURE
5 yrs

Hua Zhang

TITLE
General Legal Counsel
AGE
53
TENURE
1.9 yrs

Chuanyu Xu

TITLE
Chief Safety Officer
COMPENSATION
CN¥1M
AGE
55
TENURE
10.5 yrs

Feng Gang

TITLE
Vice President
AGE
56
TENURE
2.2 yrs

Chongxian Ma

TITLE
Vice President
COMPENSATION
CN¥881K
AGE
53
TENURE
9.3 yrs

Mingyuan Wang

TITLE
Vice President
COMPENSATION
CN¥697K
AGE
54
TENURE
8.4 yrs

Xiaohang Zhao

TITLE
Vice President
COMPENSATION
CN¥655K
AGE
57
TENURE
8.4 yrs

Zhiyong Chen

TITLE
Vice President
AGE
55
TENURE
6.6 yrs
Board of Directors Tenure

Average tenure and age of the Air China board of directors in years:

3
Average Tenure
60.5
Average Age
  • The tenure for the Air China board of directors is about average.
Board of Directors

Jianjiang Cai

TITLE
Chairman
AGE
55
TENURE
5.4 yrs

Zhiyong Song

TITLE
Vice Chairman & President
AGE
54
TENURE
3.1 yrs

Dajin Li

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥150K
AGE
61
TENURE
3.6 yrs

Zhengang Wang

TITLE
Chairman of the Supervisory Committee
AGE
60
TENURE
2.9 yrs

Deheng Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥60K
AGE
62
TENURE
2.2 yrs

Jianxiong Cao

TITLE
Non-Executive Director
AGE
59
TENURE
0.2 yrs

John Robert Slosar

TITLE
Non-Executive Director
AGE
62
TENURE
5.2 yrs

Stanley Hui

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥150K
AGE
68
TENURE
4.2 yrs

Xiaokang Wang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥60K
AGE
64
TENURE
2.2 yrs

Yasong Xue

TITLE
Non-Executive Director
COMPENSATION
CN¥917K
AGE
57
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess Air China's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Air China has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Air China Limited's (HKG:753) 1.5% Dividend Yield Looks Pretty Interesting

Dividend paying stocks like Air China Limited (HKG:753) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … It's positive to see that Air China's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable.

Simply Wall St -

What Should Investors Know About The Future Of Air China Limited's (HKG:753)?

In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Air China in the longer term. … To understand the overall trajectory of 753's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … SEHK:753 Past and Future Earnings, July 3rd 2019 This results in an annual growth rate of 18% based on the most recent earnings level of CN¥7.3b to the final forecast of CN¥16b by 2022.

Simply Wall St -

Why We’re Not Keen On Air China Limited’s (HKG:753) 6.6% Return On Capital

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Air China: 0.066 = CN¥14b ÷ (CN¥281b - CN¥75b) (Based on the trailing twelve months to March 2019.) So, Air China has an ROCE of 6.6%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Why Air China Limited's (HKG:753) High P/E Ratio Isn't Necessarily A Bad Thing

View our latest analysis for Air China How Do I Calculate Air China's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) Or for Air China: P/E of 11.34 = CN¥6.16 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.54 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings.

Simply Wall St -

Is Air China Limited's (HKG:753) Stock Available For A Good Price After Accounting For Growth?

Air China Limited (HKG:753) closed yesterday at HK$9.06, which left some investors asking whether the high earnings potential can still be justified at this price. … Let’s look into this by assessing 753's expected growth over the next few years. … If you are bullish about Air China's growth potential then you are certainly not alone

Simply Wall St -

Do Directors Own Air China Limited (HKG:753) Shares?

The big shareholder groups in Air China Limited (HKG:753) have power over the company. … Generally speaking, as a company grows, institutions will increase their ownership. … Our analysis of the ownership of the company, below, shows that.

Simply Wall St -

How Much Money Does Air China Limited (HKG:753) Make?

Today we will examine Air China’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Air China generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … The two ways to assess whether Air China’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St -

Is Air China Limited (HKG:753) A Financially Sound Company?

The size of Air China Limited (HKG:753), a HK$154b large-cap, often attracts investors seeking a reliable investment in the stock market. … This article will examine Air China’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Investors Who Bought Air China (HKG:753) Shares Five Years Ago Are Now Up 66%

For example, long term Air China Limited (HKG:753) shareholders have enjoyed a 66% share price rise over the last half decade, well in excess of the market return of around 19% (not including dividends). … During five years of share price growth, Air China achieved compound earnings per share (EPS) growth of 2.3% per year. … This EPS growth is slower than the share price growth of 11% per year, over the same period.

Simply Wall St -

Is Air China Limited (HKG:753) A Smart Pick For Income Investors?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Historically, Air China Limited (HKG:753) has paid dividends to shareholders, and these days it yields 1.5%. … Does Air China tick all the boxes of a great dividend stock?

Simply Wall St -

Company Info

Description

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. It operates through Airline Operations and Other Operations segments. The Airline Operations segment offers air passenger and air cargo services. The Other Operations segment provides aircraft engineering, airport ground handling, and other airline-related services. The company is also involved in import and export trading activities; and the provision of cabin, airline catering, air ticketing, human resources, aircraft overhaul and maintenance, and financial services. As of December 31, 2018, it had 669 passenger aircraft. The company was founded in 1988 and is headquartered in Beijing, the People’s Republic of China. Air China Limited is a subsidiary of China National Aviation Holding Company.

Details
Name: Air China Limited
753
Exchange: SEHK
Founded: 1988
HK$140,464,422,590
14,524,815,185
Website: http://www.airchina.com.cn
Address: Air China Limited
No. 30, Tianzhu Road,
Tianzhu Airport Economic Development Zone,
Beijing,
101312,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 753 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 15. Dec 2004
OTCPK AICA.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 15. Dec 2004
DB AD2 Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 15. Dec 2004
SHSC 753 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 15. Dec 2004
SZSC 753 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 15. Dec 2004
WBAG AD2 Foreign Shares-Foreign Listed Wiener Boerse AG AT EUR 15. Dec 2004
OTCPK AIRY.Y SPON ADR Pink Sheets LLC US USD 18. Jan 2007
SHSE 601111 Domestic Shares Shanghai Stock Exchange CN CNY 18. Aug 2006
XSSC 601111 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 18. Aug 2006
Number of employees
Current staff
Staff numbers
89,274
Air China employees.
Industry
Airlines
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 12:42
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.