China Southern Airlines (600029) Annual Report Comments: External factors affect performance

China Southern Airlines (600029) Annual Report Comments: External factors affect performance

Event: The company achieved operating income of 1436 in 2018.

23 ppm, an increase of 12 in ten years.

66%; net profit attributable to mother 29.

8.3 billion, a year-on-year decrease of 49.

56%; net profit after deduction to mother 23.

42 trillion, a decrease of 55 a year.

07%, the performance increase 无锡桑拿网 is mainly due to the continuous reporting of oil prices, adverse fluctuations in exchange rates.

The passenger load factor decreased slightly, and the seat load increased slightly.

In 2018, the company completed passenger traffic1.

400 million person-times, an increase of 10 in ten years.

8%; RPK increased by 12 over the same period last year.

35%, of which domestic, international and regional growth of 11 respectively.

56%, 14.

23% vs. 12.

61%; requires annual growth of 12.

03%, of which domestic, international and regional growth of 11 respectively.

22%, 13.

86% vs. 14.

04%, overall guest double bed 82.

44%, a decline of 0 per year.

23 units.

In terms of seat kilometers, the company’s seat income level for ten years was zero.

54 yuan, an increase of 1 over the same period last year.

89 天津夜网 units.

In terms of freight business, the long-term company has completed cargo and mail turnover of 75.

3.3 billion ton-kilometres, an increase of 7 in ten years.

4%; shipping volume 173.

In 22 years, it increased by 3 every year.


Operating data still maintained double-digit growth. Benefiting from the industry’s supply-side contraction and further increase in expenditure, the company’s overall income level has improved.

The oil price exchange rate affects performance, and South China’s heavy volume is good for company growth.

The reported company’s performance is affected by the oil price and the compromise rate affected by the exchange rate. The consequent jet fuel cost has increased by 34 compared with the same period last year.

57%, accounting for 28.

56% increased to 33.

37% and financial expenses are 51.

08 million yuan, the benchmark increased by 39 in the same period last year.

87 ppm, mainly due to the impact of the depreciation of the RMB caused a net exchange loss of 17%.

US $ 4.2 billion, compared to net foreign exchange earnings of the same period last year17.9 billion.

The corporate debt ratio has been cancelled26.

60%, the current oil price exchange rate changes of 10% respectively affect performance42.

92 ppm vs. 19.

5 trillion, the sensitivity of external factors has decreased.

According to the Air Force Civil Aviation Administration’s summer and autumn flight schedules for 2019, the airport in South China has been growing at a much higher rate than expected, and when will Baiyun Airport and Shenzhen Airport increase.

6% vs. 5.


As the company’s base airline in Guangzhou, the momentary heavy volume in South China will significantly solve the current situation of insufficient airspace and capacity deployment, which will help the company’s increase in the proportion of high-quality routes and increase the level of revenue.

Profit forecast: It is expected to realize profit 78-2019-2021.

7.9 billion, 92.

3.3 billion and 112.

5 trillion, corresponding to the current sustainable PE of 13.

31, 11.

36 and 9.

32 times, maintaining the “recommended” level.

Risk reminder: Macroeconomic fluctuations cause the civil aviation market demand to decrease, and the price of oil increases and changes.

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