Investment Rating - The investment rating for the company is "Outperform the Market" [5][15][19] Core Views - The company has significantly reduced its losses in 2024, with total revenue reaching 174.22 billion yuan, a year-on-year increase of 8.9%, and a net profit attributable to shareholders of -1.696 billion yuan, marking a substantial reduction in losses [1][8] - Domestic demand is recovering, with notable improvements in passenger load factors, although revenue levels remain under pressure due to excess supply in the industry [2][10] - The company has improved operational efficiency and benefited from lower fuel prices, leading to a decrease in unit costs and an increase in gross margin [3][13] Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 39.563 billion yuan, a decrease of 2.2% year-on-year, with a net profit of -3.661 billion yuan, also reflecting reduced losses [1][8] - The total passenger transport volume, revenue passenger kilometers (RPK), and available seat kilometers (ASK) increased by 9.1%, 13.8%, and 6.4% year-on-year, respectively, recovering to 106.1%, 106.2%, and 102.3% of 2019 levels [2][10] - The overall passenger load factor improved to 85.40%, up 5.6 percentage points year-on-year [2][10] Cost and Efficiency - The company's operating costs in Q4 2024 were 38.83 billion yuan, down 5.8% year-on-year, attributed to improved operational efficiency and lower fuel prices [3][13] - The unit cost per ASK was 0.44 yuan, a decrease of 11.5% year-on-year, contributing to a gross margin increase of 3.8 percentage points to 1.85% [3][13] Future Outlook - The company plans to introduce 53 new aircraft in 2025, with a total fleet size reaching 917 aircraft by the end of 2024 [3][13] - Profit forecasts for 2025-2027 have been adjusted, with expected net profits of 3.22 billion yuan, 6.67 billion yuan, and 8.44 billion yuan, respectively [15][17]

Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][20]. Core Views - The company is projected to incur a loss of 1.7 billion yuan in 2024, which represents a reduction in loss by 2.5 billion yuan year-on-year, with expectations for continued recovery in profitability [1][6]. - The report highlights a gradual improvement in the aviation market, driven by resilient domestic demand and a tightening supply of capacity, which is expected to enhance the industry supply-demand relationship [6][7]. Financial Summary - **Revenue Projections**: Total revenue is expected to reach 174.224 billion yuan in 2024, with a year-on-year growth rate of 8.9%. Projections for subsequent years are 189.530 billion yuan in 2025, 203.987 billion yuan in 2026, and 219.821 billion yuan in 2027 [2][11]. - **Net Profit Forecast**: The company is expected to achieve a net profit of 4.013 billion yuan in 2025, 7.058 billion yuan in 2026, and 10.136 billion yuan in 2027, reflecting significant growth rates of 336.6% and 75.9% respectively [2][11]. - **Earnings Per Share (EPS)**: EPS is projected to be -0.09 yuan in 2024, followed by 0.22 yuan in 2025, 0.39 yuan in 2026, and 0.56 yuan in 2027 [2][11]. - **Valuation Ratios**: The price-to-earnings (P/E) ratio is expected to be -64 in 2024, improving to 27 in 2025, 15 in 2026, and 11 in 2027. The price-to-book (P/B) ratio is projected to decrease from 3.1 in 2024 to 2.0 in 2027 [2][11]. Operational Data - **Capacity and Load Factor**: The available seat kilometers (ASK) are expected to increase by 14.7% year-on-year in 2024, with a load factor of 84.4%, which is an increase of 6.3 percentage points year-on-year [6][7]. - **Cost Management**: Operating costs are projected to be 159.571 billion yuan in 2025, with a year-on-year increase of 8.1%. Fuel costs are expected to be 550 billion yuan in 2024, reflecting a 5.6% increase [6][7]. Market Position - The company is positioned to benefit from a recovering aviation market, with expectations of improved profitability as domestic demand remains strong and international routes continue to recover [6][7].

Investment Rating - The report maintains an "Accumulate" rating for China Southern Airlines (600029) [1] Core Views - The company reported a revenue of 174.2 billion yuan in 2024, an increase of 8.9% year-on-year, while the net profit attributable to shareholders was a loss of 1.696 billion yuan, reducing losses by 59.7% [2][7] - The airline's capacity (ASK) increased by 14.7% year-on-year, with domestic ASK up by 2.4% and international ASK recovering to 82.4% of 2019 levels [4] - Passenger load factors improved significantly, with overall load factor at 84.4%, up 6.3 percentage points year-on-year, and domestic load factor at 84.7%, up 6.8 percentage points [4] - The average ticket price in the industry fell by 12.1% year-on-year, impacting overall profitability, while the company’s unit revenue per RPK decreased by 12.7% [5] - The report highlights a positive outlook for ticket prices in the second and third quarters of 2025, driven by limited supply and increasing travel demand [6] Summary by Sections Financial Performance - In 2024, the company achieved a total revenue of 174.2 billion yuan, with passenger and cargo revenues of 149.7 billion yuan and 18.7 billion yuan, respectively, marking increases of 7.4% and 22.4% year-on-year [7] - The company’s net profit is projected to improve significantly in the coming years, with estimates of 4.223 billion yuan, 6.460 billion yuan, and 8.015 billion yuan for 2025, 2026, and 2027, respectively [9] Operational Metrics - The fleet size reached 917 aircraft by the end of 2024, with a net increase of 9 aircraft during the year, and fleet utilization improved to 9.62 hours per day [4] - The report indicates that the company’s operational recovery is evident, with gross margin expected to rise and profitability elasticity becoming more pronounced [2][6] Market Outlook - The report suggests that the airline industry is likely to see a recovery in ticket prices due to increasing travel demand and limited supply, which could enhance profitability [6][9] - The company is positioned to benefit from a balanced supply-demand scenario, with ticket prices expected to rebound as travel demand grows [9]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in relation to the benchmark index [9]. Core Views - The company reported a revenue of 174.2 billion yuan in 2024, reflecting a year-on-year increase of 8.9%, while the net profit attributable to shareholders was a loss of 1.696 billion yuan, a reduction in loss by 59.7% compared to the previous year [7][9]. - The report highlights that the average ticket price in the industry decreased by 12.1% year-on-year, impacting the overall profitability of the passenger transport business, while the cargo business experienced significant growth [5][9]. - The company is expected to see a recovery in profitability due to limited supply growth and increasing travel demand, which may support ticket prices in the future [6][9]. Summary by Sections Operational Performance - In 2024, the total Available Seat Kilometers (ASK) increased by 14.7%, with domestic ASK up by 2.4% and international ASK recovering to 82.4% of 2019 levels [4]. - The total Revenue Passenger Kilometers (RPK) rose by 23.9%, with domestic RPK increasing by 11.3% and international RPK recovering to 83.3% of 2019 levels [4]. - The overall passenger load factor reached 84.4%, up by 6.3 percentage points year-on-year, with domestic and international load factors at 84.7% and 83.3%, respectively [4]. Financial Performance - The company achieved a gross margin of 8.4% in 2024, with expectations for further improvement in the coming years [8]. - The report forecasts net profits for 2025-2027 to be 4.223 billion, 6.460 billion, and 8.015 billion yuan, respectively, with significant year-on-year growth rates [9]. - The earnings per share (EPS) are projected to be 0.23, 0.36, and 0.44 yuan for the years 2025, 2026, and 2027, respectively [9]. Market Outlook - The report anticipates that the airline industry will face limited supply growth in 2025, which, combined with increasing travel demand, could lead to a rebound in ticket prices [6][9]. - The company is positioned to benefit from this market dynamic, with a potential for high elasticity in ticket pricing as demand increases [6][9].

Core Insights - In 2024, China Southern Airlines reported total revenue of 174.22 billion yuan, an increase of 8.94% year-on-year, while net loss narrowed to 1.696 billion yuan from a loss of 4.209 billion yuan in the previous year, representing a 59.71% reduction in losses [1] Passenger Transport Business - The passenger transport revenue reached 146.45 billion yuan, accounting for 86.96% of the company's main business income, with a year-on-year increase of 7.55% [2] - The total number of passengers transported was 165 million, a growth of 15.84% year-on-year, with domestic routes carrying 145 million passengers (up 10.34%) and international routes (excluding Hong Kong, Macau, and Taiwan) carrying 17.6494 million passengers, a significant increase of 94.09% [2] - The average passenger load factor improved to 84.38%, an increase of 6.28 percentage points year-on-year, although the revenue per passenger kilometer decreased by 12.73% to 0.48 yuan due to intensified market competition and declining domestic ticket prices [2] Cargo Business - The cargo business emerged as a crucial pillar for reducing losses, with air cargo demand globally increasing by 11.3% year-on-year, surpassing 2021 records [3] - Cargo and mail transportation revenue reached 18.695 billion yuan, a year-on-year increase of 22.39%, representing 11.10% of the company's main business income [3] - The cargo turnover volume was 9.415 billion ton-kilometers, up 15.85% year-on-year, with revenue per ton-kilometer increasing by 5.85% to 1.99 yuan [3][4] Future Plans - The company plans to enhance domestic market capacity by increasing flight frequency and routes, including new domestic routes such as Beijing-Xishuangbanna and Haikou-Yiwu, as well as international routes like Guangzhou-Madrid and Beijing-Xi'an-Doha [2] - In the cargo sector, the company aims to optimize its cargo network, strengthen partnerships with logistics companies, and advance digital transformation and cost control to improve operational efficiency and profitability [4]

Investment Rating - The investment rating for the company is "Buy" [7][8] Core Views - The company is expected to enter a profit cycle soon, with a projected revenue of RMB 174.22 billion in 2024, an increase of 8.9% year-on-year, and a narrowed net loss of RMB 1.696 billion, down 59.7% from a loss of RMB 4.209 billion in 2023 [1][4] - The airline industry is anticipated to see supply growth remain low, leading to improved supply-demand dynamics and enhanced revenue levels for airlines [1][4] Summary by Sections Revenue and Profitability - In 2024, the company achieved a passenger load factor of 84.4%, up 6.3 percentage points year-on-year, while unit revenue per passenger kilometer decreased by 12.7% to RMB 0.48 [2] - The company’s cargo revenue reached RMB 18.695 billion in 2024, a 22.4% increase, driven by high growth in cross-border e-commerce [2] Cost and Margin Analysis - The company improved its aircraft utilization rate to 9.62 hours, leading to a 4.5% reduction in unit costs, resulting in a gross profit margin increase of 0.7 percentage points to 8.4% [3] - The total operating cost for 2024 was RMB 159.571 billion, an increase of 8.1% year-on-year, while gross profit improved by 18.7% to RMB 14.653 billion [3] Profit Forecast and Valuation - The net profit forecast for 2025 has been raised by 6% to RMB 4.027 billion, with expected net profits of RMB 7.894 billion in 2026 and RMB 9.501 billion in 2027 [4][6] - The target price for the A-share is set at RMB 7.50 and for the H-share at HKD 5.10, reflecting an upward adjustment in valuation multiples [4][8]

Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Insights - The company recorded a net loss of 1.696 billion yuan in 2024, a reduction of 59.71% year-on-year, aligning with expectations [6] - Total operating revenue for 2024 reached 174.224 billion yuan, reflecting an 8.94% year-on-year growth [6] - The company is gradually moving towards a profit phase, with projected net profits of 3.64 billion yuan in 2025 and 7.229 billion yuan in 2026 [6] Financial Data and Profit Forecast - Total operating revenue (in million yuan): - 2023: 159,929 - 2024: 174,224 - 2025E: 176,292 - 2026E: 186,869 - 2027E: 196,419 [8] - Net profit (in million yuan): - 2023: -4,209 - 2024: -1,696 - 2025E: 3,640 - 2026E: 7,229 - 2027E: 9,823 [8] - The company expects a gross margin improvement from 8.4% in 2024 to 12.8% by 2027 [6] Operational Data - The company’s capacity and volume continued to recover in 2024, with overall ASK (Available Seat Kilometers) increasing by 14.8% year-on-year [6] - Domestic RPK (Revenue Passenger Kilometers) recovered to 118.5% of the 2019 level, with a year-on-year increase of 11.3% [6] - The company plans to increase its fleet by 53, 55, and 59 aircraft in the years 2025 to 2027, respectively [6]

Financial Performance - In 2024, the company achieved operating revenue of RMB 174,224 million, an increase of 8.94% compared to RMB 159,929 million in 2023[20]. - The net loss attributable to shareholders was RMB (1,696) million, a significant improvement of 59.71% from RMB (4,209) million in the previous year[20]. - The cash flow from operating activities was RMB 31,445 million, a decrease of 21.65% from RMB 40,134 million in 2023[20]. - The total assets at the end of 2024 were RMB 329,738 million, reflecting a growth of 6.63% from RMB 309,226 million at the end of 2023[20]. - The basic loss per share improved to RMB (0.09) from RMB (0.23) in 2023, marking a 60.87% reduction in losses[21]. - The weighted average return on equity increased by 6.09 percentage points to (4.72)% compared to (10.81)% in 2023[21]. - The total operating revenue for the reporting period was RMB 174,224 million, an increase of RMB 14,295 million or 8.94% year-on-year[64]. - The total operating cost was RMB 159,571 million, an increase of RMB 11,989 million or 8.12% year-on-year, with fuel costs rising to RMB 54,989 million, up 5.65%[65]. - The net cash inflow from operating activities was RMB 31,445 million, a decrease of 21.65% compared to the previous year[81]. - The total liabilities increased to RMB 277,143 million, up 7.74% from the end of the previous year, with current liabilities accounting for 49.94% of total liabilities[67]. Operational Highlights - The company reported a total passenger transport volume of 1.65 billion people, contributing to a significant operational scale in the aviation sector[33]. - The company achieved a passenger transport volume increase of 15.8% and a cargo mail transport volume increase of 15.7% during the reporting period[35]. - The total revenue passenger kilometers (RPK) reached 305,965.93 million, up 23.90% from 246,947.23 million in the previous year[42]. - The total revenue ton kilometers (RTK) increased by 21.54% to 36,207.79 million from 29,791.11 million[42]. - The average passenger load factor improved to 84.38%, an increase of 6.28 percentage points compared to the previous year[43]. - The total number of flights increased by 5.50% to 1,135.10 thousand flights in 2024 from 1,075.95 thousand flights in 2023[44]. - The fleet size reached 917 aircraft, with 345 owned, 241 under finance lease, and 331 under operating lease[45]. Strategic Initiatives - The company aims to build a world-class airline by 2025, focusing on core air transport and collaborative development[55]. - The company is enhancing its hub network strategy, particularly in the Guangdong-Hong Kong-Macao Greater Bay Area[54]. - The company plans to accelerate the construction of the Beijing Daxing hub and implement digital transformation initiatives[56]. - The company is focusing on strengthening its hub network strategy centered around Guangzhou and Beijing, aiming to enhance its international hub capabilities[59]. - The company is advancing its digital transformation initiatives, with key performance indicators such as social media followers and app downloads ranking among the industry leaders[62]. - The company is committed to advancing digital transformation and strategic industry adjustments to enhance competitiveness and market responsiveness[120]. Governance and Compliance - The company guarantees the authenticity, accuracy, and completeness of the annual report, with no false records or major omissions[5]. - The audit report issued by KPMG Huazhen shows a standard unqualified opinion for the company[5]. - The company’s governance structure complies with relevant laws and regulations, ensuring a balanced decision-making process among its governing bodies[140]. - The company held 2 shareholder meetings and 2 category shareholder meetings during the reporting period, ensuring all shareholders, especially minority investors, could participate in decision-making through online voting[143]. - The board of directors consists of 6 members, including 3 executive directors and 3 independent directors, and held 8 board meetings during the reporting period[144]. - The company received an A-level rating for information disclosure from the Shanghai Stock Exchange for the 2023-2024 period, marking the 11th consecutive year of receiving this rating[153]. Risk Factors - The company faces macroeconomic risks that could impact demand for air passenger and cargo services, directly affecting business performance[125]. - The company is exposed to fuel price fluctuations, with a 10% increase in average fuel prices potentially raising operating costs by RMB 5,499 million[136]. - The company has a significant capital expenditure risk due to high fixed costs associated with aircraft operations, which could lead to financial difficulties if business conditions deteriorate[133]. - The company’s financial performance is sensitive to exchange rate fluctuations, with a 1% change in the USD/CNY exchange rate potentially impacting shareholder equity by RMB 289 million[134]. - The company is subject to regulatory risks related to macroeconomic policies, which could affect its operational performance and future business development[126]. Future Outlook - The company projects that by 2025, global air transport revenue will exceed $1 trillion, with a 4.4% year-on-year growth[111]. - In China, the aviation industry is expected to achieve a passenger transport volume of 780 million by 2025, driven by rising national income and increased public holidays[112]. - The company aims to establish a world-class aviation transport enterprise by 2025, focusing on core aviation operations and collaborative development[113]. - The company plans to deliver a total of 970 aircraft by the end of 2025, with 91 deliveries expected in that year, and a total of 1,084 aircraft by the end of 2027[122]. Employee and Management - The company reported a total of 102,597 employees, with 67,303 in the parent company and 35,294 in major subsidiaries[188]. - The company has established a market-oriented personnel selection and incentive mechanism to enhance employee motivation and performance linkage[189]. - The total pre-tax remuneration for all directors, supervisors, and senior management during the reporting period amounted to RMB 8.2459 million, including deferred compensation[172]. - The company has appointed new senior management members, including a new Chief Safety Officer and a new Chief Flight Officer, indicating a restructuring in leadership[159]. - The company is actively engaging in performance assessments to align management compensation with company performance metrics[159].

Core Points - China Southern Airlines reported a total operating revenue of 174.22 billion yuan for the year 2024, an increase of 8.94% year-on-year [1] - The loss attributable to equity holders narrowed to 1.769 billion yuan, a decrease of 57.27% compared to the previous year [1] - The basic loss per share was 0.1 yuan [1] Revenue Breakdown - The majority of the company's operating revenue comes from air transportation, accounting for 94.79% in 2024 [1] - In 2024, passenger revenue constituted 88.68% of total transportation revenue, while cargo and mail revenue made up 11.32% [1] - Total transportation revenue increased by 9.05% year-on-year to 165.145 billion yuan, driven by growth in both passenger and cargo revenues [1] Passenger Metrics - Passenger revenue rose from 136.17 billion yuan in 2023 to 146.45 billion yuan in 2024, marking a 7.55% increase [2] - Total passenger numbers increased by 15.84% to 165 million in 2024 [2] - Revenue passenger kilometers (RPK) grew by 23.90% from 246.947 billion RPK in 2023 to 305.966 billion RPK in 2024, primarily due to increased production capacity [2]

证券代码：600029 证券简称：南方航空 公告编号：临 2025-013 中国南方航空股份有限公司 第十届监事会第五次会议决议公告 本公司监事会及全体监事保证本公告内容不存在任何虚假 记载、误导性陈述或者重大遗漏，并对其内容的真实性、准确性 和完整性承担法律责任。 一、监事会会议召开情况 （二）关于提名张弢先生为公司第十届监事会股东代表监事 候选人的议案； 根据本公司控股股东中国南方航空集团有限公司的推荐，监 事会同意提名张弢先生为本公司第十届监事会股东代表监事候 选人（简历附后）。监事会同意将此议案提交本公司股东会审议。 表决情况：同意 3 票、反对 0 票、弃权 0 票。表决结果：通 过。 （三）关于公司 2024 年度报告全文、摘要及业绩公告的议 案； 2025 年 3 月 26 日，中国南方航空股份有限公司（以下简称 "本公司""公司"）第十届监事会第五次会议在广州市白云区 齐心路 68 号中国南方航空大厦 34 楼 33A12 会议室以现场会议方 式召开。应出席会议监事 3 人，实际出席会议监事 3 人，任积东 监事因公未亲自出席本次会议，授权魏振兴监事代为出席会议并 表决。本次会议由魏振兴监事主 ...