Shanghai stock report - China Southern Airlines - A Share

CHINA

China Southern Airlines - A Share rises in 4 out of last 5 days August 18, 2017 15:30 CST

NEWS BITES - BRIC

China Southern Airlines Limited - A Share (SS:600029), Shanghai's 3rd largest Airline company by market cap, has increased 3.0 fen (0.4%). Compared with the SSE 180 Index which rose 13.9 points (0.2%) in the day, the relative price increase was 0.2%. The volume was 0.9 times the average daily trading volume of 66.5 million shares. The stock rose in four out of the last 5 trading days, for a 5-day rise of 2.8% to close at CNY8.42

SECTION 1

CHINA SOUTHERN AIRLINES - A SHARE BULLISH SIGNALS

1.1 Fundamentals:

+ Revenue growth has shown signs of recovery in recent quarters. [Quarter ended, all figures in %]

QtrRevenue GrowthNet Profit GrowthNet Profit Margin
Mar 1710.1-5.9
Dec 16-13.6--5.9
Sep 16-39.85.711.8

1.2 Technicals:

Uptrend: The stock rose on high volatility today and expanding price range.

+ Rises to Falls: in the past month the number of rises outnumbered falls 15:9 or 1.7:1.

+ In the last three months the stock has hit a new 52-week high four times, pointing to an uptrend.

+ The present value of CNY1,000 (PV1000) invested five years ago in China Southern Airlines - A Share is CNY2,464, including a capital gain of CNY1,313 and dividend reinvested of CNY151.

+ 5 years Multiplier in CNY = 2.464x

+ Compound Annual Growth Rate (CAGR) in CNY = 19.8%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in China Southern Airlines - A Share is $US2,347, including a capital gain of $US1,203 and dividend reinvested of $US144.

+ 5 years ago USD 1 equalled CNY 6.3573

+ 5 years Multiplier in USD = 2.347x

+ Compound Annual Growth Rate (CAGR) in USD = 18.6%

Aug 18, 2017: USD 1 equals CNY 6.68

1.3 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverCNY511 million (US$76.5 million)In Top 5%
Price/MAP2001.08In Top Quartile

SECTION 2

CHINA SOUTHERN AIRLINES - A SHARE BEARISH SIGNALS

2.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 1.2%, divided by average yield of dividend yielding stocks in the SSE 180 Index of 2.5% is 46.9%. This suggests the stock is overvalued in dividend yield terms.

2.2 Technicals:

+ The price decreased 0.8% in the last month.

2.3 Overbought/Bearish/Resistance Signals:

+ The stock is overbought according to the Williams % R indicator of -17.4, suggesting the price is close to its 14-day high of CNY8.54.

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 60,690,000 shares worth CNY511 million (US$76.5 million) traded today. In the past week, volume was 0.9 times average and the shares were up 2.8%. The volume was 0.9 times the average daily trading volume of 66.5 million shares.

+ China Southern Airlines - A Share is at a discount of 7.2% to its 12-month high of CNY9.07 on June 19. It is also at a premium of 26.4% to the 12-month low of CNY6.66 on December 15, 2016.

+ The present value of CNY1,000 (PV1000) invested one year ago in China Southern Airlines - A Share is CNY1,081, comprising a capital gain of CNY68 and dividend reinvested of CNY13.

PV10001-week1-month1-year
600029.SS1,0281,0041,081
SSE 180 Index1,0179991,126

3.2 Moving Annual Return

600029Close (CNY)Dividends (CNY)Capital Gain / (Loss) %% YieldAnnual Return %
August 188.420.16.81.38.1
1 Yr ago7.880.08(37.0)0.6(36.4)
2 Yrs ago12.510.04414.11.6415.7
3 Yrs ago2.430.04(7.3)1.5(5.8)
4 Yrs ago2.620.05(27.9)1.4(26.5)

3.3 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 156.2% (or a turnover period of 7 months). This average length of ownership of the stock at 0.5 times the average holding period of 1 year 3 months for stocks in the SSE 180 Index suggests a larger number of speculators on the share register, making it less safe for long-term investors.

3.4 Month-on-Month Comparison (Trailing Month - ended 17th)

17 Aug17 Jul16 Jun17 May17 Apr17 Mar
Price 17 Aug (CNY)8.398.458.7888.077.76
% Price Change-0.7-3.88.5-0.935.5
Avg Daily Volume66,578,32073,314,64275,530,24276,216,40297,192,69779,777,882
VWP (CNY)8.548.478.267.947.787.49
Price Range (CNY)7.85 - 8.578.18 - 8.538.61 - 8.87.97 - 8.177.87 - 8.137.72 - 7.88
Relative Price Change %-1.7-8.86.212.35.6
Volatility %9.111.916.611.811.610

SECTION 4

PEER GROUP ANALYSIS & RANKING

4.1 Global Peer Group Analysis (all figures in USD)

NameRelative Str. (6 mo)MCapPV $1000 (1 yr)RevenueNet ProfitTotal Assets
Air China- A Share8520.3B1,189.216.4B1B31.4B
United Continental3719.7B1,342.936.6B2.3B40.1B
China Eastern Airlines - A Share6315.5B1,059.014.6B666.9M29.1B
Ana Holdings8913B1,426.216.1B903.2M21.2B
China Southern Airlines - A Share7812.7B1,072.417B549.2M27.3B
Japan Airlines7512.3B1,208.711.8B1.5B15.8B
Deutsche Lufthansa9511.3B2,098.139.7B2.1B40.7B
Singapore Airlines719.1B1,003.511B264.1M18.1B
Qantas Airways978.1B1,878.412.8B813.3M13.2B

Global Peer Group Analysis (continued)

CodeCountryLast PriceP/EP/SP/BookTurnover Rate (%)% Disc to 52-w Hi
601111CNCNY9.2556.112.6
UALUS$US64.708.40.539.0356.322.1
600115CNCNY7.04124.49.2
9202JPJPY407.300.81.777.81.1
600029CNCNY8.39157.07.5
9201JPJPY3,824.01.11.5131.20.9
LHADEEUR20.665.40.32.15,714.22.7
C6LSGSGD10.5534.80.81.9
QANAUAUDA5.7011.60.63.286.04.1

4.2 Global Rank [out of 47,594 stocks] and Rank in the Asia Region [out of 22,147 stocks]

DescriptionValueGlobal RankIn Asia Region
MCap (US$)12.7B1,126322
Total Assets (US$)27.3B1,353419
Revenue (US$)17B822230
Net Profit (US$)549.2M1,577459
Return on Equity %9.912,9596,798
Net Profit Margin %4.518,2899,908
Yield %1.215,4717,520
PV$1000 (1Year) US$*1,07220,6829,904
US$* Change (1Year) %5.320,1869,741

* 1 year ago USD 1 = CNY 6.64

Aug 18, 2017: USD 1 equals CNY 6.68

4.3 Rank in the SSE 180 Index [out of 167 stocks], Rank in the Total Shanghai Market [out of 1300 stocks] and Rank in the Airlines sector [out of 5 stocks]

DescriptionValueIn SSE 180 IndexIn Total Shanghai MarketIn Airlines sector
MCap (CNY)84.9B51563
Total Assets (CNY)186B47513
Revenue (CNY)115.8B37391
Net Profit (CNY)3.7B59623
Return on Equity %9.9903253
Net Profit Margin %4.51295915
Yield %1.2933293
PV1000 (1Year)1,081712802

4.4 Independent Ratings

China Southern Airlines Limited - A Share was ranked 32 in World Airline Awards list of Top 100 Airlines Companies in 2016; an improvement over a year from rank 36 in 2015.

It is the 544th largest by revenue in the Forbes Global 2000.

It is placed 273/905 in BSS News Bites' ranking of Shanghai performers in the past year, a percentile ranking of 70.

SECTION 5

DIVIDENDS

Dividend History

DateValue ( fen)Type
26 Jul 201710Cash
Tr 12 Months10
01 Jul 20168Cash
2015 - 20168
06 Aug 20154Cash
2014 - 20154
31 Jul 20144Cash
2013 - 20144
25 Jul 20135Cash
2012 - 20135

SECTION 6

CHINA SOUTHERN AIRLINES - A SHARE PROFILE

6.1 Activities

China Southern Airlines Company provides commercial airline services throughout China, Hong Kong and Macau regions, Southeast Asia and other parts of the world. The Company conducts a portion of its airline operations through its airline subsidiaries, including Xiamen Airlines, Southern Airlines (Group) Shantou Airlines Company Limited (Shantou Airlines), Zhuhai Airlines Company Limited (Zhuhai Airlines), Guizhou Airlines Company Limited (Guizhou Airlines) and Chongqing Airlines (collectively, the Airline Subsidiaries).

6.2 Industry & Sector

Classification LevelName of Sector
Economic SectorIndustrials
Business SectorTransportation
Industry GroupPassenger Transportation Services
IndustryAirlines

6.3 Issued Capital

Based on 10,088,170,000 issued shares the market capitalisation is CNY84.9 billion (US$12.7 billion).

SECTION 7

STOCK BUZZ

Corporate Wire

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July 24: China Southern Airlines - A Share: Announcement on Implementation of Rights and Interests Distribution for 2016

The Company implements the scheme of rights and interests distribution for 2016 as follows: a cash dividend of RMB0.1 (taxes included) per A share.

Record date: July 25, 2017

Ex-dividend date: July 26, 2017

Cash dividend payable date: July 26, 2017

July 07: China Southern Airlines - A Share: Announcement on Resolutions of Annual General Meeting of 2016

The Company held the Annual General Meeting of 2016 on June 30, 2017, which discussed and approved issues including the scheme of profit distribution for 2016, the engagement of external auditor and authorizing the directorate to decide upon its remuneration and the signing of the "Framework Agreement on Aircraft Financing Lease in 2nd Half of 2017" with China Southern Airlines International Financing Lease Co., Ltd.

July 04: China Southern Airlines - A Share announces dividend

China Southern Airlines - A Share today announced a cash dividend of 10.0 fen per share. The ex dividend date is Wednesday, July 26, 2017 and the record date is Tuesday, July 25, 2017 and it is payable on Wednesday, July 26.

June 29: China Southern Airlines - A Share: Announcement on Resolutions of 15th Session of 7th Directorate Meeting

The Company held the 15th session of the 7th directorate meeting on June 26, 2017, which discussed and approved issues including the "Proposal of Scheme of Non-public A Shares Issuance and Non-public H Shares Issuance", the "Proposal of Connected Transactions Involved in This Non-public A Shares Issuance and Non-public H Shares Issuance" and the "Proposal of Research Report on Feasibility Analysis of Usage of Funds Raised in Non-public A Shares Issuance".

May 24: China Southern Airlines - A Share: Notice of Convening Annual General Meeting of 2016

The Company's directorate decided to hold the Annual General Meeting of 2016 by way of combination of on-the-spot and online voting at 14:30 on June 30, 2017 to discuss issues including the audited consolidated financial statement in 2016, the profit distribution scheme of 2016 and the proposal of engaging external auditor and authorizing the directorate to decide on the remuneration.

Contact: 86-20-86124736

Physical Address: 278 Ji Chang Road Guangzhou, Guangdong, 510405 China

State/Province/Country: GNG, China

Country of Incorporation: China

Exchange: Shanghai Stock Exchange (SSE)

ISIN: CNE000001FG0

SS:600029; SHA:600029; CH:600029; 600029.SS

PermID: 4295864276

China Southern Airlines Co Ltd

Source: www.BuySellSignals.com