SA(SH:601021) Guan Cha Zhe Wang·2025-10-05 07:36Core Viewpoint - Spring Airlines is considering an IPO in Hong Kong, potentially raising several hundred million USD, with discussions ongoing regarding the specifics of the issuance [1][2] Company Overview - Spring Airlines, listed on A-shares since 2015, is China's first privately listed airline, with a current market capitalization of 52.32 billion RMB as of September 30, 2025 [1] - The airline operates 134 aircraft and covers over 190 domestic routes and more than 50 international routes, focusing on popular tourist destinations in Asia [1] Financial Performance - For the first half of 2025, Spring Airlines reported revenue of 10.3 billion RMB, a year-on-year increase of 4.3%, while net profit decreased by 14% to 1.17 billion RMB [2] - The decline in net profit is attributed to the reduction of previously unrecognized deferred tax assets, impacting tax expenses significantly [2] - Excluding fluctuations in fuel and material costs, the airline's unit costs in July and August 2025 were lower than those in the same period of 2019 [2] Market Trends - There is a growing interest from investors in Chinese companies, leading to more firms considering listings on the Hong Kong Stock Exchange to support business expansion [2] - As of September 25, 2025, 11 A-share companies have successfully listed in Hong Kong, raising over 90 billion HKD, with more than 30 additional companies preparing for listings [3] Industry Context - The Hong Kong stock market has seen significant performance, with the Hang Seng Index and related indices showing year-to-date increases of 32.03%, 42.77%, and 29.55% respectively [3] - The trend of A-share companies seeking secondary listings in Hong Kong is driven by improved policies, increased internationalization needs, and enhanced liquidity in the Hong Kong market [3][5] Strategic Implications - If Spring Airlines successfully lists in Hong Kong, it would become another airline with dual listings (A+H), potentially setting a precedent for private airlines seeking financing [3] - The current environment is seen as a critical phase for Chinese companies "going global," with Hong Kong serving as a key hub for capital flow and international market access [5]