Morningstar - China Southern Airlines Company Limited Class A (600029) China Southerns Shares Dont Look Too Attractive Despite Cost Savings Ahead

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Morningstar

Ivan Su

EUR 100.00 For Business Accounts Only

China Southern's Shares Don't Look Too Attractive Despite Cost Savings Ahead

We continue to see China Southern as fairly valued as we await its full-year results release at the end of March. Our no-moat rating is unchanged. Since October 2018, the airlineâ€™s growth in cargo supply has consistently outpaced that of demand by an average of almost 700 basis points. We believe the underperformance in cargo might have been affected by the U.S.-China trade war. Management continues to guide for a passenger capacity increase of a low teens percentage for 2019, a rate thatâ€™s fast...

01/03/2019 12 EN

Underlying

China Southern Airlines Company Limited Class A

China Southern Airlines and its subsidiaries are engaged in the provision of commercial airline services throughout the People's Republic of China, Hong Kong, Macau and Taiwan regions, Southeast Asia and other parts of the world. Co. also provides air cargo and mail services. Co.'s airline operations are fully integrated with its airline-related businesses, including aircraft and engine maintenance, flight simulation and air catering operations. As of Dec 31 2012, Co. operated a fleet of 491 aircraft: 243 boeing, 225 airbus and 23 others. Co. had carried 86,485,000 passengers, and 1,232,000 tons cargo and mail.

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CNE000001FG0 China

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Ivan Su

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China Southern's Shares Don't Look Too Attractive Despite Cost Savings Ahead

China Aviation: Airlines’ Dec 23 operation data: Rebounded from Nov 23’s lows, but 4Q data still missed our projections. Maintain UNDERWEIGHT. Upgrade China Eastern Airlines to HOLD.

China Aviation: Airlines: 3Q23 results broadly in line; bottom line turned around in peak season.

China Aviation: Airlines -- Operating data of three major airlines improved further in Jul 23.

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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