This issue shows you the darling of foreign investment China Southern Airlines.
Business life and life
Company Name: China Southern Airlines Co. Ltd.
Date of establishment: 1995-03-25; Time to market: 2003-07-25
Last week, we analyzed why foreign investors want to buy aviation stocks. In this issue, we look at foreign-funded airline stocks China Southern Airlines. Next, we will have an in-depth understanding of the company from three aspects: stock selection logic, corporate finance, and buying opportunities.
Since the end of October last year, the shareholding ratio has been from 40 million shares (less than 1% of circulation) to the highest of 540 million shares in early April this year. Currently, it holds 500 million shares, accounting for 7.07% of circulation. The stock price is from 6 yuan to a maximum of 9.65. The main driver of this round of rising is foreign investment.
China Southern Airlines is the largest airline in China. The number of aircraft, route network and number of flights are the first in the industry and a veritable industry leader. The previous performance introduced the main analysis points of civil aviation in the market supply and demand, oil prices, exchange rates, and then we analyze enterprise logic from four aspects: industry competitiveness, market supply and demand, oil price and exchange rate.
1. Industry Competitiveness
From the perspective of gross profit margin, the gross profit of the company's products is lower than the industry average. The industry's gross profit margin has fallen for three consecutive years since it reached a high point in 15 years. Industry competition has intensified, and the downward trend of the industry's gross profit margin has not been curbed. However, China Southern Airlines declined last year. The slowdown has risen in the first quarter of this year. It is necessary to observe whether the peak season (summer) of the industry in the third quarter is still rising, and determine the emergence of the inflection point of China Southern Airlines' competitiveness.
2. Market supply and demand
XXIt is expected that the second half of the year will be dominated by large fluctuations below 7.
Both are relatively negative for China Southern Airlines and are still controllable.
4. Small observations
The tax reduction and fee reduction policy has reduced the cost of China Southern Airlines by 1.47 billion. The stock market has maintained steady growth. Beijing Second Airport has increased the market revenue and profit expectations of China Southern Airlines. Oil prices and exchange rates are expected to maintain controllable fluctuations. A comprehensive analysis of China Southern's 19-year growth will continue. And there may be more than expected.
Look at the company's financial statements, from the five aspects of profitability, growth, gold content, operations, debt repayment, etc. analyze whether the company has obvious minefields!
The industry selected 7 corporate data: Air China, China Southern Airlines, Eastern Airlines, Spring Airlines, Jixiang Airlines, and Haihang Holdings.
From the perspective of profitability, the company ranks lower in the industry, but China Southern Airlines has risen against the market in the face of declining profitability in the industry. Due to the oil price increase and the depreciation of the exchange rate in 2018, the industry's profitability has been greatly reduced. China Southern Airlines also Did not escape a robbery.
Small performance rating: Samsung
2. Growth (
From the perspective of the company's revenue and profit, the company's revenue growth of 10% in the last two years also shows that the market analyzed in the previous chapter is still in short supply. It is expected that the revenue will remain above 10% for 19 years. Speed up. From the perspective of deducting non-net profit, there was a significant improvement in the first quarter. It is expected that the performance will be under pressure due to exchange rate and oil price in the second quarter! The third quarter will be improved, and the summer peak season will be superimposed, and the performance will be released.
Small performance rating: Samsung
3. Gold content