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Transportation

Air China

  • 6.18 HKD
  • -0.32
  • -4.92%
  • China
    Aug 16, 2018
  • Ticker
    HKG(753)
  • Prev. close
    6.50
  • Market cap (HKD)
    111,552.31M
  • Market cap (USD)
    14,210.57M
  • Shares
    14,524.81M

Company Background

Air China, a state-owned enterprise, is one of the country's top three carriers, alongside China Eastern Airlines and China Southern Airlines. Air China is a national flag carrier used by the country's top dignitaries, including the president and premier, when they fly domestically and internationally.

The airline's predecessor was a civil aviation arm of China's air force. It was brought under direct government control in 1980. The carrier was then split up, with what is now Air China taking over the Beijing base of operations and international routes. In another round of reorganization in 2002, the spinoffs were consolidated into Air China, China Eastern and China Southern.

Air China is headquartered at Beijing Capital International Airport. It is a member of Star Alliance and has a capital tie-up with Hong Kong's Cathay Pacific Airways. It boasts the largest international network of the major Chinese airlines.

Its leading shareholder is the state-owned China National Aviation Holding. Critics say privatization and service enhancements are needed to boost Air China's competitiveness.

Business Summary

Air China Ltd. engages in the operation of airline industry. It provides aircraft engineering, food catering, airport ground handling, cargo and passenger air transportation and other airline-related services. The company was founded in 1988 and is headquartered in Beijing, China.

Financial Highlights

Dec 2017 HKDUSD
Revenue139,595.38M17,913.34M
Gross Profit23,611.98M3,029.96M
Operating income11,308.19M1,451.10M
Income before tax13,672.32M1,754.47M
Net income8,348.70M1,071.33M
EBITDA27,175.16M3,487.20M
Diluted EPS0.620.07
Dividends Per Share0.140.01
Total Assets285,498.45M36,521.36M
Total liabilities170,844.08M21,854.61M
Total equity103,383.30M13,224.93M
Operating cash flow30,985.47M3,976.15M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 122,790.08M 131,689.59M 134,023.74M 131,310.50M 139,595.38M
Gross Profit 18,150.46M 20,798.91M 30,418.48M 29,080.21M 23,611.98M
Operating income 5,497.54M 8,344.87M 18,017.08M 18,091.03M 11,308.19M
Income before tax 4,744.81M 5,215.64M 9,156.18M 11,914.52M 13,672.32M
Net income 4,187.15M 4,760.24M 8,355.60M 7,961.62M 8,348.70M
EBITDA 19,537.63M 22,959.80M 34,299.01M 34,012.93M 27,175.16M
Diluted EPS 0.34 0.39 0.67 0.64 0.62
Dividends Per Share 0.05 0.06 0.12 0.12 0.14
Total Assets 263,024.61M 262,048.51M 255,056.43M 250,046.69M 285,498.45M
Total liabilities 187,946.21M 186,920.69M 174,837.62M 164,048.67M 170,844.08M
Total equity 69,359.92M 67,923.70M 71,395.99M 76,841.47M 103,383.30M
Operating cash flow 22,688.14M 22,947.98M 40,351.14M 36,775.01M 30,985.47M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 15,830.31M 16,981.94M 17,287.64M 16,916.10M 17,913.34M
Gross Profit 2,339.98M 2,682.10M 3,923.66M 3,746.26M 3,029.96M
Operating income 708.75M 1,076.10M 2,324.01M 2,330.58M 1,451.10M
Income before tax 611.71M 672.58M 1,181.05M 1,534.89M 1,754.47M
Net income 539.81M 613.85M 1,077.78M 1,025.65M 1,071.33M
EBITDA 2,518.82M 2,960.76M 4,424.21M 4,381.72M 3,487.20M
Diluted EPS 0.04 0.05 0.08 0.08 0.07
Dividends Per Share 0.00 0.00 0.01 0.01 0.01
Total Assets 33,922.24M 33,791.56M 32,909.86M 32,250.98M 36,521.36M
Total liabilities 24,239.39M 24,103.71M 22,559.25M 21,158.97M 21,854.61M
Total equity 8,945.34M 8,758.86M 9,212.20M 9,911.00M 13,224.93M
Operating cash flow 2,924.99M 2,959.24M 5,204.87M 4,737.54M 3,976.15M

Valuation Measures

Dec 2017
PER15.22
ROA3.11%
ROE9.26%
Operating margin8.10%
Profit margin5.98%

Key executives

  • Vice Chairman & Chief Executive Officer: Zhi Yong Song
  • Vice President: Wei Xi Chai
  • Vice President: Chong Xian Ma
  • Vice President: Gang Feng
  • Vice President: Xiao Hang Zhao

Shareholders

  • Cathay Pacific Airways Ltd. (57.7%)
  • China State-Owned Assets Supervision & Admn Commission (4.9%)
  • The Vanguard Group, Inc. (1.3%)
  • BlackRock Fund Advisors (1.0%)
  • Norges Bank Investment Management (0.5%)
  • Hang Seng Investment Management Ltd. (0.4%)
  • Dimensional Fund Advisors LP (0.4%)
  • FIL Investment Management (Hong Kong) Ltd. (0.4%)
  • GF Fund Management Co., Ltd. (0.2%)
  • BlackRock Advisors (UK) Ltd. (0.2%)

Contact Details

  • Website:http://www.airchina.com.cn
  • Address: No. 30 Tianzhu Road, Airport Industrial Zone, Beijing, 101312, China
  • Phone: +86.10.61462777

Related Companies

  • Yunnan Airport Aircraft Maintenance Services Co., Ltd.
  • Qingdao Airlines
  • Air China Inner Mongolia Co., Ltd.
  • Air China Import & Export Trade Co., Ltd.
  • China National Aviation Finance Co. Ltd.
  • Sandalwood 2013 LLC
  • Air China Business Jet
  • Tibet Airlines Co., Ltd.
  • Dalian Airlines Co., Ltd.
  • Air China Development Corp. (Hong Kong) Ltd.
  • Air China Shantou Industrial Development Co.
  • Chengdu Falcon Aircraft Engineering Service Co. Ltd.
  • Air China Cargo Co. Ltd.
  • Total Transform Group Ltd.
  • Shenzhen Airlines Co., Ltd.
  • China National Aviation Co. Ltd.

Competitors

  • Cathay Pacific Airways Limited
  • China Eastern Airlines Corporation Limited Class H
  • China Airlines Ltd.
  • PAL Holdings, Inc.
  • Air France-KLM SA
  • China Southern Airlines Company Limited Class H
  • Asiana Airlines Inc.
  • Asia Aviation Public Co., Ltd.
  • Air Canada
Last Updated on 16 Aug, 2018

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