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Transportation

Spring Airlines Co., Ltd.

  • 31.14 CNY
  • +0.76
  • +2.50%
  • China
    Aug 17, 2018
  • Ticker
    SHG(601021)
  • Prev. close
    30.38
  • Market cap (CNY)
    27,855.40M
  • Market cap (USD)
    4,048.04M
  • Shares
    916.89M

Company Background

Spring Airlines is a Chinese commercial airline based in Shanghai and is the nation's first low-cost carrier. Founded in 2004, the company made its maiden flight in July 2005. Demand for both domestic and overseas tours is growing in China along with an increase in the number of middle-income consumers. Spring Airlines is seeking to capitalize on the trend by minimize the cost of management and offering bargain fares.

Listed on the Shanghai Stock Exchange, Spring Airlines originated from Shanghai Spring International Travel Service founded in the 1980s by Wang Zhenghua after retiring from a civil service position. Wang developed the company into one of the largest private travel agencies in China.

While railways were the principal means of transportation in China until around 2000, Wang entered the aviation business in expectation of a steep increase in demand for flight services.

Spring Airlines currently flies over more than 50 domestic and international routes in total. Promoting cost cuts including fee-based in-flight meals, the company offers special discount tickets such as 99 yuan and 199 yuan.

Spring Airlines is also pushing ahead with business strategies to remain in the black despite lower fares. For example, the promotion of marketing campaigns enables the company to operate at more than 90% of capacity.

At present, Spring Airlines offers fares 30% lower on the average than rivals and maintains a seat-occupancy rate of more than 95%, it said.

Business Summary

Spring Airlines Co., Ltd. engages in the provision of local and international aviation services. It offers domestic routes such as Guangzhou, Zhuhai, Kunming, Xiamen, Shenyang, Harbin, Urumqi, Haikou, Guilin, Wenzhou and Qingdao. The company also offers international routes within Asia. Spring Airlines was founded by Zheng Hua Wang on November 1, 2004 and is headquartered in Shanghai, China.

Financial Highlights

Dec 2017 CNYUSD
Revenue10,956.24M1,621.17M
Gross Profit1,298.43M192.12M
Operating income768.15M113.66M
Income before tax1,650.17M244.17M
Net income1,261.58M186.67M
EBITDA1,563.56M231.35M
Diluted EPS1.580.23
Dividends Per Share0.180.02
Total Assets20,605.60M3,164.25M
Total liabilities12,131.16M1,862.89M
Total equity8,463.90M1,299.73M
Operating cash flow2,431.25M359.74M
Currency in CNYCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 6,549.84M 7,312.37M 8,069.60M 8,422.72M 10,956.24M
Gross Profit 831.81M 1,061.39M 1,591.79M 1,054.49M 1,298.43M
Operating income 535.67M 719.61M 1,175.45M 1,529.01M 768.15M
Income before tax 987.00M 1,215.85M 1,921.30M 1,374.23M 1,650.17M
Net income 732.23M 884.18M 1,327.85M 950.51M 1,261.58M
EBITDA 837.37M 1,056.42M 1,591.16M 2,112.72M 1,563.56M
Diluted EPS 0.91 1.10 1.66 1.19 1.58
Dividends Per Share -- 0.12 0.21 0.16 0.18
Total Assets 7,651.41M 11,261.48M 16,028.98M 19,646.56M 20,605.60M
Total liabilities 4,908.41M 7,708.19M 9,489.20M 12,323.07M 12,131.16M
Total equity 2,743.00M 3,553.29M 6,539.77M 7,323.48M 8,463.90M
Operating cash flow 1,382.47M 913.47M 1,612.14M 2,191.04M 2,431.25M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 1,065.41M 1,186.74M 1,283.92M 1,267.80M 1,621.17M
Gross Profit 135.30M 172.25M 253.26M 158.72M 192.12M
Operating income 87.13M 116.78M 187.02M 230.15M 113.66M
Income before tax 160.54M 197.32M 305.69M 206.85M 244.17M
Net income 119.10M 143.49M 211.27M 143.07M 186.67M
EBITDA 136.20M 171.45M 253.16M 318.01M 231.35M
Diluted EPS 0.14 0.17 0.26 0.17 0.23
Dividends Per Share -- 0.01 0.03 0.02 0.02
Total Assets 1,263.88M 1,815.19M 2,468.42M 2,827.04M 3,164.25M
Total liabilities 810.78M 1,242.45M 1,461.31M 1,773.23M 1,862.89M
Total equity 453.09M 572.74M 1,007.11M 1,053.81M 1,299.73M
Operating cash flow 224.87M 148.25M 256.50M 329.79M 359.74M

Valuation Measures

Dec 2017
PER23.58
ROA6.26%
ROE15.98%
Operating margin7.01%
Profit margin11.51%

Key executives

  • President & Director: Zhi Jie Wang
  • Chief Financial Officer & Secretary: Ke Chen
  • Vice President: Xin Yu Wu
  • Securities Affairs Representative: Zhi Qin Zhao

Shareholders

  • Shanghai Spring Autumn International Travel Service Group Co. (62.9%)
  • Shanghai Chunqiu Charter Flights Travel Agency Co. (4.7%)
  • Shanghai Chuncheung Investment Co. Ltd. (3.6%)
  • Shanghai Chunyi Investment Co. Ltd. (1.9%)
  • China Securities Finance Corp. Ltd. (1.8%)
  • GF Fund Management Co., Ltd. (0.6%)
  • Xingzheng Securities Asset Management Ltd. (0.6%)
  • Zhong Ou Asset Management Co., Ltd (0.6%)
  • GIC Pte Ltd. (Investment Management) (0.6%)
  • JF Asset Management Ltd. (0.5%)

Contact Details

Related Companies

    Competitors

    • China Eastern Airlines Corporation Limited Class H
    • China Southern Airlines Company Limited Class H
    • China Airlines Ltd.
    • Hainan Airlines Holding Co., Ltd. Class B
    • United Continental Holdings, Inc.
    • Japan Airlines Co., Ltd.
    • Singapore Airlines Ltd.
    • Deutsche Lufthansa AG
    • Vietjet Aviation JSC
    • AirAsia Group Bhd.
    • Asia Aviation Public Co., Ltd.
    Last Updated on 17 Aug, 2018

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