China Southern Airlines (1055.HK) 2019Q1 saw small increase, reaffirm accumulate rating May 3, 2019 321

PSR Recommendation: ACCUMULATE Status: Maintained
Target Price: HKDHKD7.50

Investment summary
Nearly 50% Decrease in Earnings Last Year
In 2018, the Company recorded a revenue of RMB143,623million, up by 12.66% Y-o-Y. The
net profit attributable to the parent company was RMB2,983 million, down by 49.56% Y-o-Y;
the net profit attributable to parent company excluding non-recurring items was RMB2,342
million, down by 55.07% Y-o-Y; EPS was RMB0.28, down by 53% Y-o-Y. The decline in
performance was mainly due to fluctuations in oil prices and exchange rates in 2018. The
dividend per share was RMB0.05, with a payout ratio of 18%.

About the author

Profile photo of Zhang Jing

Zhang Jing
Phillip Securities (HK)

Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors. She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.

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