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Transportation

Spring Airlines Co., Ltd.

  • 32.23 CNY
  • -0.52
  • -1.59%
  • China
    Apr 19, 2018
  • Ticker
    SHG(601021)
  • Prev. close
    32.75
  • Market cap (CNY)
    30,028.40M
  • Market cap (USD)
    4,782.96M
  • 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. It also offers international routes within Asia. The company was founded by Zheng Hua Wang on November 1, 2004 and is headquartered in Shanghai, China.

Financial Highlights

Dec 2016 CNYUSD
Revenue8,422.72M1,267.80M
Gross Profit1,054.49M158.72M
Operating income1,529.01M230.15M
Income before tax1,374.23M206.85M
Net income950.51M143.07M
EBITDA2,112.72M318.01M
Diluted EPS1.190.17
Dividends Per Share0.160.02
Total Assets19,646.56M2,827.04M
Total liabilities12,323.07M1,773.23M
Total equity7,323.48M1,053.81M
Operating cash flow2,191.04M329.79M
Currency in CNYCurrency in USD

Historical Data

 Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016
Revenue 5,608.91M 6,549.84M 7,312.37M 8,069.60M 8,422.72M
Gross Profit 686.47M 831.81M 1,061.39M 1,591.79M 1,054.49M
Operating income 432.26M 535.67M 719.61M 1,175.45M 1,529.01M
Income before tax 842.58M 987.00M 1,215.85M 1,921.30M 1,374.23M
Net income 624.58M 732.23M 884.18M 1,327.85M 950.51M
EBITDA 676.51M 837.37M 1,056.42M 1,591.16M 2,112.72M
Diluted EPS 0.78 0.91 1.10 1.66 1.19
Dividends Per Share -- -- 0.12 0.21 0.16
Total Assets 7,001.22M 7,651.41M 11,261.48M 16,028.98M 19,646.56M
Total liabilities 4,928.00M 4,908.41M 7,708.19M 9,489.20M 12,323.07M
Total equity 2,073.22M 2,743.00M 3,553.29M 6,539.77M 7,323.48M
Operating cash flow 752.07M 1,382.47M 913.47M 1,612.14M 2,191.04M
 Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016
Revenue 888.92M 1,065.41M 1,186.74M 1,283.92M 1,267.80M
Gross Profit 108.79M 135.30M 172.25M 253.26M 158.72M
Operating income 68.50M 87.13M 116.78M 187.02M 230.15M
Income before tax 133.53M 160.54M 197.32M 305.69M 206.85M
Net income 98.98M 119.10M 143.49M 211.27M 143.07M
EBITDA 107.21M 136.20M 171.45M 253.16M 318.01M
Diluted EPS 0.12 0.14 0.17 0.26 0.17
Dividends Per Share -- -- 0.01 0.03 0.02
Total Assets 1,123.73M 1,263.88M 1,815.19M 2,468.42M 2,827.04M
Total liabilities 790.97M 810.78M 1,242.45M 1,461.31M 1,773.23M
Total equity 332.76M 453.09M 572.74M 1,007.11M 1,053.81M
Operating cash flow 119.19M 224.87M 148.25M 256.50M 329.79M

Valuation Measures

Dec 2016
PER30.87
ROA5.32%
ROE13.71%
Operating margin18.15%
Profit margin11.28%

Key executives

  • CFO, Secretary & Investor Relations Contact: Ke Chen
  • Director & Vice President: Zhi Jie Wang
  • Vice President: Xin Yu Wu

Shareholders

  • Shanghai Spring Autumn International Travel Service Group Co. (63%)
  • Shanghai Chunqiu Charter Flights Travel Agency Co. (4.7%)
  • Shanghai Chuncheung Investment Co. Ltd. (3.7%)
  • Shanghai Chunyi Investment Co. Ltd. (2.0%)
  • China Securities Finance Corp. Ltd. (1.9%)
  • GF Fund Management Co., Ltd. (1.7%)
  • Penghua Fund Management Co., Ltd. (0.6%)
  • Shanghai Yicun Investment Management Co. Ltd. (0.6%)
  • Taikang Asset Management Co., Ltd. (0.6%)
  • E Fund Management Co., 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
    • Japan Airlines Co., Ltd.
    • United Continental Holdings, Inc.
    • Singapore Airlines Ltd.
    • Deutsche Lufthansa AG
    • Asia Aviation Public Co., Ltd.
    • Vietjet Aviation JSC
    Last Updated on 19 Apr, 2018

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