Assessing Air China (SEHK:753) Valuation After Guiding To A Substantial 2025 Net Loss

Simply Wall St.

Feb 02

Air China (SEHK:753) has issued 2025 earnings guidance that points to a net loss of about CN¥1.3b to CN¥1.9b, which raises fresh questions about how quickly its profitability can stabilise. See our ...

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See our ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/transportation/hkg-753/air-china-shares/news/assessing-air-china-sehk753-valuation-after-guiding-to-a-sub\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Assessing Air China (SEHK:753) Valuation After Guiding To A Substantial 2025 Net Loss</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAssessing Air China (SEHK:753) Valuation After Guiding To A Substantial 2025 Net Loss\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-02 12:39 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/transportation/hkg-753/air-china-shares/news/assessing-air-china-sehk753-valuation-after-guiding-to-a-sub><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Air China (SEHK:753) has issued 2025 earnings guidance that points to a net loss of about CN¥1.3b to CN¥1.9b, which raises fresh questions about how quickly its profitability can stabilise. See our ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/transportation/hkg-753/air-china-shares/news/assessing-air-china-sehk753-valuation-after-guiding-to-a-sub\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK1561","symbol_name":"航空股","start_time":0,"source_url":"https://simplywall.st/stocks/hk/transportation/hkg-753/air-china-shares/news/assessing-air-china-sehk753-valuation-after-guiding-to-a-sub","article_id":"2608378548","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3221000-choice2-main-header/1585186666788"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/transportation/hkg-753/air-china-shares/news/assessing-air-china-sehk753-valuation-after-guiding-to-a-sub","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2608378548","pubTimestamp":1770007148,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Air China (SEHK:753) has issued 2025 earnings guidance that points to a net loss of about CN¥1.3b to CN¥1.9b, which raises fresh questions about how quickly its profitability can stabilise.\nSee our latest analysis for Air China.\nThe earnings warning comes after a mixed share price run, with a 90 day share price return of 17.51% but a year to date share price return showing a 1.83% decline. At the same time, the 1 year total shareholder return of 46.33% indicates that longer term holders have...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK1561":"航空股","BK1514":"人民币升值概念","00753":"中国国航","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK1123":"航空公司","BK1505":"一带一路"},"translate_title":"在预计2025年将出现大幅净亏损后评估国航（SEHK：753）的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00753":0.9,"DCF":1},"content_text":"Air China (SEHK:753) has issued 2025 earnings guidance that points to a net loss of about CN¥1.3b to CN¥1.9b, which raises fresh questions about how quickly its profitability can stabilise. See our latest analysis for Air China. The earnings warning comes after a mixed share price run, with a 90 day share price return of 17.51% but a year to date share price return showing a 1.83% decline. At the same time, the 1 year total shareholder return of 46.33% indicates that longer term holders have still seen solid gains despite recent pressure. If this guidance has you reassessing airline exposure, it may be worth broadening your search and checking out fast growing stocks with high insider ownership. With 2025 guidance pointing to a CN¥1.3b to CN¥1.9b loss and the share price still showing a 46.33% 1 year total return, the key question is whether Air China is undervalued or whether the market is already pricing in future growth. AdvertisementPreferred Price-to-Sales Ratio of 0.6x: Is it justified? On a P/S of 0.6x and a last close of HK$6.98, Air China appears undervalued compared with both regional airlines and its closer peers. The P/S ratio compares the company’s market value with its revenue. This is often useful for airlines where earnings can be volatile but sales are sizeable and relatively more stable. For Air China, the current 0.6x reading sits below the estimated fair P/S of 1x, which suggests the share price may not be fully reflecting the revenue base of HK$168,375.15m. Against the Asian Airlines industry average P/S of 0.9x and a peer average of 1.7x, Air China’s 0.6x is meaningfully lower. If the P/S multiple were to move toward the fair ratio of 1x, it would indicate the market placing a stronger value on each dollar of sales than it does today. Explore the SWS fair ratio for Air China Result: Price-to-Sales ratio of 0.6x (UNDERVALUED) However, you still have to weigh a guided CN¥1.3b to CN¥1.9b loss and a modest CN¥270.78m net profit base against recent share price gains. Find out about the key risks to this Air China narrative. Another view: DCF suggests a larger gap While the 0.6x P/S points to value, our DCF model goes further, indicating Air China at HK$6.98 is trading below an estimated future cash flow value of HK$9.32. That gap can signal opportunity or risk, depending on how much faith you put in long term cash flow forecasts. Look into how the SWS DCF model arrives at its fair value. 753 Discounted Cash Flow as at Feb 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Air China for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 876 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.  Build Your Own Air China Narrative If you see the numbers differently or prefer to rely on your own work, you can pull the data together and build a fresh view in just a few minutes, then Do it your way. A great starting point for your Air China research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Looking for more investment ideas? If Air China has sparked fresh thinking, do not stop here. Broaden your watchlist and let data rich ideas lead you to your next potential opportunity.  Spot potential value by scanning these 876 undervalued stocks based on cash flows that screen for companies where prices may not fully reflect underlying cash flows. Back test your interest in artificial intelligence by checking out these 24 AI penny stocks that focus on listed names tied to AI themes. Tap into recurring income potential by reviewing these 12 dividend stocks with yields > 3% that highlight companies offering dividend yields above 3%.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-2","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}