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China Southern Airlines Company (600029) Fair Value & Analysis

Industrials · CN · Market cap 90.8B CNY

CS China Southern Airlines Company 600029 · SHG
Price¥5.18
Fair Value¥1.58
Upside-69.4%
Quality44/100
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Healthy Growth
Thin margins · 1.7% net margin
Moderate debt · generates free cash flow
Trails peers (5/14)
Narrow moat 29/100
Evidence: Medium Range ¥0.9163 – ¥1.58 Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 20 days ago

Fair value updated Jul 18, 2026, revised from ¥1.28 to ¥1.58 (+23.8%) since Jul 7, 2026. Share price +1.2% over the past month.

Below-average quality, and screening another 69% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥1.58). The favourable scenario is already priced in.
  • Weak quality (44/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

¥8.29 ¥4.99 Fair Value ¥1.58 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range ¥4.99 – ¥8.29 · fair‑value band ¥0.9163 – ¥1.58 · the ¥5.18 price screens above the ¥1.58 fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

China Southern Airlines Company (600029) currently trades at ¥5.18, while our model-based Fair Value estimate is ¥1.58, implying the stock looks roughly 69.4% overvalued today. We read business quality at 44/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, China Southern Airlines Company generated revenue of 187B CNY at a net margin of 1.7%. Revenue grew 10.1% year over year. It earns a return on equity of 9.5%. Net debt stands at 65.4B CNY. Fundamentals as of Jul 18, 2026

Our scenario range runs from ¥0.9163 (bear case) to ¥1.58 (bull case); at ¥5.18, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 39% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at 45% fair-value upside, at -69%, 600029 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥12.09 ¥21.25 ¥36.15 80
Residual Income ¥1.41 ¥1.37 ¥1.13 76
Rev-Margin DCF ¥5.73 ¥9.37 ¥13.90 74
All 26 models by family
DCF Models
FCF DCF ¥12.04 ¥21.62 ¥37.38 38
Owner Earnings ¥7.82 ¥14.47 ¥25.40 31
5Y Revenue Exit ¥5.73 ¥9.26 ¥13.69 39
5Y EBITDA Exit ¥15.87 ¥29.31 ¥45.73 41
5Y P/E Exit ¥3.28 ¥4.42 ¥5.49 38
10Y Revenue Exit ¥7.65 ¥11.59 ¥16.91 36
10Y EBITDA Exit ¥14.41 ¥25.95 ¥42.68 37
10Y P/E Exit ¥6.20 ¥8.13 ¥10.31 35
Earnings-Based
Graham-Dodd ¥0.3200 ¥1.28 ¥1.74 54
Lynch FV ¥0.3200 ¥0.4500 ¥0.5900 50
PEG = 1.0 ¥0.3200 ¥0.4500 ¥0.5900 46
EPV ¥2.16 ¥2.81 ¥3.37 59
Dividend Discount
Gordon GGM ¥2.94 ¥6.12 ¥9.71 70
DDM Multi-Stage ¥2.94 ¥5.16 ¥6.43 61
Multiples
P/E Multiple ¥0.7100 ¥0.9500 ¥1.18 63
P/S Multiple ¥0.6000 ¥0.8000 ¥1.00 58
P/B Multiple ¥0.6000 ¥0.8000 ¥1.00 55
EV/EBIT ¥4.84 ¥7.03 ¥9.22 53
EV/EBITDA ¥19.75 ¥26.91 ¥34.06 54
EV/Revenue ¥2.70 ¥4.60 ¥6.50 43
Asset-Based
NCAV (Graham) ¥0.9800 ¥1.32 ¥1.96 50
Growth DCF
Growth DCF ¥12.09 ¥21.25 ¥36.15 80
Rev-Margin DCF ¥5.73 ¥9.37 ¥13.90 74
Economic Profit
Residual Income ¥1.41 ¥1.37 ¥1.13 76
ROIC Compounder ¥2.24 ¥3.52 ¥5.33 72
Growth Earnings
Growth-Adj P/E ¥0.5400 ¥0.7800 ¥1.01 68

Widest divergence: DCF Models (¥11.59) versus Earnings-Based (¥0.4500). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 187B CNY
Revenue growth (YoY) +10.1%
Net margin 1.7%
Return on equity 9.5%
Free cash flow 20.4B CNY FY2025
P/E ratio 30.7
More key figures
Operating margin 5.7%
EPS (TTM) ¥0.1700
EPS growth (YoY) -4.8%
Net debt 65.4B CNY FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 46 · Market factors (momentum, volatility) 38

Profitability 20
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 65
Earnings quality: real cash, not paper profit
Fin. Strength 5
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 83
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

China Southern Airlines Company Limited, together with its subsidiaries, provides airline transport services in China, Hong Kong, Macau, Taiwan, and internationally. It operates in two segments, Aviation Operations and Other. The company offers air passenger; freight; mail; airline catering; hotel and travel; leasing; and internet services.

Full company description

China Southern Airlines Company Limited, together with its subsidiaries, provides airline transport services in China, Hong Kong, Macau, Taiwan, and internationally. It operates in two segments, Aviation Operations and Other. The company offers air passenger; freight; mail; airline catering; hotel and travel; leasing; and internet services. It also provides online services, including seat and check-in, change/refund, flight status, pre-paid luggage, transfer accommodation, and meal booking. The company was incorporated in 1995 and is headquartered in Guangzhou, China. China Southern Airlines Company Limited operates as a subsidiary of China Southern Air Holding Company Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Southern Airlines Company reported revenue of ¥182B in FY2025 versus ¥102B in FY2021, a compound +15.7%/yr. Reported net income was ¥857M in FY2025.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
182B CNY
Latest YoY
+4.6%
Avg. growth/yr (3Y)
+27.9%
Avg. growth/yr (5Y)
+14.5%
Avg. growth/yr (28Y)
+10.0%
Revenue +15.7%/yr
FY21 ¥102B
FY22 ¥87.1B
FY23 ¥160B
FY24 ¥174B
FY25 ¥182B
Net income
FY21 −¥12.1B
FY22 −¥32.7B
FY23 −¥4.2B
FY24 −¥1.7B
FY25 ¥857M

600029 screens 69% overvalued. Compare with Delta Air Lines, Inc →

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Cite: Fair Value Calculator (2026). "China Southern Airlines Company Fair Value". https://www.fairvalue-calculator.com/stock/600029

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Airlines · 60 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 44 · Below median
Fair Value upside −69% · Bottom 25%
Return on equity (TTM) 10% · Below median
Return on assets 2% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 6% · Above median
Revenue growth 10% · Above median
Debt / equity 1.36× · Higher than 75% of peers

Valuation Multiples vs Airlines median · lower = cheaper

P/E (TTM) 29.5× · Pricier than 75% of peers
P/B 2.55× · Pricier than median
P/S (TTM) 0.49× · Cheaper than median
P/FCF 0.7× · Cheaper than median
EV/EBITDA 5.3× · Pricier than median
PEG 1.09× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 36
FUTURE 51 · sector 46
PAST 38 · sector 46
HEALTH 32 · sector 72
DIVIDEND 0 · sector 44

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Airlines stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Delta Air Lines, Inc DAL $84.17 $118.24 +40%
United Airlines Holdings UAL $120.97 $175.62 +45%
Ryanair Holdings RYA €25.47 €41.26 +62%
Southwest Airlines Co LUV $47.56 $14.76 -69%
InterGlobe Aviation Limited INDIGO ₹5,249 ₹3,704 -29%
Singapore Airlines Limited C6L 7.60 SGD 7.89 SGD +4%
Air China Limited 601111 ¥5.97 ¥7.16 +20%
LATAM Airlines Group LTM $54.87 $106.79 +95%
Deutsche Lufthansa AG 1LHA €9.98 €15.60 +56%
China Eastern Airlines Corporation 600115 ¥3.66 ¥14.20 +288%

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Frequently asked questions

Is China Southern Airlines Company (600029) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of ¥1.58 versus a price of ¥5.18, about −69% (overvalued).
What is the fair value of 600029?
Our model-based fair value for China Southern Airlines Company is ¥1.58 (as of Jul 18, 2026), built from audited fundamentals. The current price is ¥5.18.
What is the quality score of 600029?
China Southern Airlines Company has a Quality Score of 44/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of China Southern Airlines Company (600029)?
China Southern Airlines Company reported trailing-twelve-month revenue of about 187B CNY (latest available figure, as of Jul 18, 2026).
What is the net profit margin of 600029?
The net profit margin of China Southern Airlines Company is about 1.7%, meaning it keeps roughly 1.7% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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