GBIA (600004 CH): More profit with More Capacity March 21, 2018

Company Profile

Guangzhou Baiyun International Airport is China’s third largest hub airport, with an annual throughput of 59,780,000 passengers in 2016, among the rank of the world’s ultra-large busy airports. As of the end of 2016, Baiyun Airport’s route network has covered more than 200 navigation points around the world, among which more than 80 international and regional destinations are accessible to over 40 countries and regions; nearly 70 airlines operate at Baiyun Airport, including 44 foreign airlines and regional companies.

Baiyun Airport was listed on the Shanghai Stock Exchange in 2004, and the actual controller was Guangzhou government. In 2007, the company increased the acquisition of the airport flight zone assets directionally, and now has a terminal. In 2015, the third runway of Baiyun Airport was put into use. The company’s source of passengers is mainly from the Pearl River Delta region, and the main competitor is Shenzhen Airport.

Financial Analysis

In Baiyun Airport’s revenue structure, the aviation business income accounts for approximately 70%, and the remaining 30% is non-aviation income. The company’s general income in 2016 was RMB 6.167 billion, with a year-on-year increase of 9.5%; the net profit was RMB 1.39 billion, increased by 11% year on year; the EPS was RMB 1.21; the dividend per share stood at RMB 0.037 with the allotment of 0.45 share per share. The capacity release effect is the main reason for the rapid growth of revenue: The third runway of Baiyun Airport went into operation and the aircraft sortie during peak hours increased from 65 to 71 (temporarily 68 aircraft are in service). As 3.5 billion convertible bonds were issued for financing and expansion last year, the asset-liability ratio increased from approximately 20% of a few years ago to 39%. The operating cash flow was strong with a net inflow of RMB 1.956 billion.

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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