Shanghai International Airport Co Ltd

Shanghai International Airport Co Ltd maintains a capital structure characterized by significant leverage, with long-term debt of 21.68 billion CNY against total equity of 42.54 billion CNY, resulting in a debt-to-equity ratio of 0.51. The company holds a current ratio of 2.46, indicating adequate short-term liquidity to cover immediate obligations. However, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, highlighting reliance on debt financing for its asset base. The market capitalization stands at 57.85 billion CNY, with a price-to-book ratio of 1.36, suggesting the market values the company slightly above its tangible book value.

Profitability metrics indicate modest returns on capital, with a return on equity (ROE) of 5.45% and a return on assets (ROA) of 3.23%. The company generated net income of 2.12 billion CNY on revenue of 13.35 billion CNY, yielding a net margin of approximately 15.86%. Operating income was 3.01 billion CNY, reflecting an operating margin of roughly 22.55%. These returns are consistent with capital-intensive infrastructure businesses, where high fixed costs and significant asset bases compress ROA and ROE relative to lighter-asset industries. The EV/EBITDA multiple of 24.03 suggests a premium valuation relative to earnings before interest, taxes, depreciation, and amortization, likely reflecting the strategic importance and monopoly-like characteristics of the airport asset.

Revenue concentration is inherent to the business model, with the company deriving all disclosed revenue from its core airport operations. The financial snapshot does not provide a detailed segment breakdown, implying that the Shanghai International Airport complex operates as a single integrated unit. Geographic exposure is concentrated in Shanghai, China, making the company's performance highly sensitive to regional economic activity, passenger traffic volumes, and cargo throughput in this specific hub. The lack of diversified geographic or segment revenue streams increases the company's exposure to local regulatory and economic shocks.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current revenue of 13.35 billion CNY and net income of 2.12 billion CNY represent the latest normalized period performance. Without multi-year historical data, it is not possible to assess year-over-year growth rates or trends in revenue and profitability. The company's ability to grow revenue will depend on passenger traffic recovery, cargo volume expansion, and potential rate adjustments for aeronautical and non-aeronautical services.

Risk factors include medium liquidity risk and low dilution risk. The key flag of negative net cash after debt subtraction underscores the company's leverage and potential refinancing needs. The debt-to-equity ratio of 0.51 is manageable but requires monitoring in a rising interest rate environment. The company's reliance on debt financing for capital expenditures, as evidenced by the negative free cash flow of 2.61 billion CNY after capital expenditures of 1.31 billion CNY, highlights the ongoing investment requirements for maintaining and expanding airport infrastructure.

Recent events include analyst estimates with a mean price target of 28.44 CNY and a median price target of 27.30 CNY, suggesting upside potential from the current market price of 23.25 CNY. The mean recommendation of 2.33 indicates a moderate buy sentiment among analysts, with 2 strong buys, 6 buys, and 2 holds. These estimates reflect expectations for continued operational stability and potential growth in airport traffic and ancillary revenues.

Analysts project 11.3% upside to a mean price target of 28.44, reflecting positive market sentiment.

Cash conversion ratio of 2.39 is well above the cohort median of 1.2, showing robust cash generation.

Long-term debt decreased from 26.9 billion CNY in 2022 to 21.1 billion CNY in 2025, reducing leverage.

The company faces a high credit risk flag, suggesting potential difficulties in meeting financial obligations.

Debt-to-equity ratio of 0.51 exceeds the cohort median of 0.40, implying higher financial leverage than peers.

The company carries a medium liquidity risk flag, highlighting potential short-term cash flow constraints.

Revenue ¥3.20B; Operating income ¥811.0M.

• ▍Revenue ¥3.20B
• ▍Operating income ¥811.0M
• ▍Net margin 18.1%

Revenue ¥3.63B, +14,3% YoY; Operating income −32,3% YoY.

• ▍Revenue ¥3.63B, +14,3% YoY
• ▍Operating income −32,3% YoY
• ▍Net income −34,1% YoY
• ▍Net margin 13.3%

Revenue ¥3.18B, +4,8% YoY; Operating income +25,2% YoY.

• ▍Revenue ¥3.18B, +4,8% YoY
• ▍Operating income +25,2% YoY
• ▍Net income +22,4% YoY
• ▍Net margin 16.5%

Revenue ¥3.18B; Operating income ¥1.04B.

• ▍Revenue ¥3.18B
• ▍Operating income ¥1.04B
• ▍Net margin 23.0%

Revenue ¥3.13B; Operating income ¥545.5M.

• ▍Revenue ¥3.13B
• ▍Operating income ¥545.5M
• ▍Net margin 12.4%

Revenue ¥3.03B; Operating income ¥596.4M.

• ▍Revenue ¥3.03B
• ▍Operating income ¥596.4M
• ▍Net margin 14.1%

Revenue ¥12.37B, +12,0% YoY; Operating income +97,2% YoY.

• ▍Revenue ¥12.37B, +12,0% YoY
• ▍Operating income +97,2% YoY
• ▍Net income +107,0% YoY
• ▍Free cash flow −3,4% YoY
• ▍Net margin 15.6%

Revenue ¥11.05B, +101,6% YoY; Operating income +135,3% YoY.

• ▍Revenue ¥11.05B, +101,6% YoY
• ▍Operating income +135,3% YoY
• ▍Net income +131,2% YoY
• ▍Free cash flow +292,9% YoY
• ▍Net margin 8.5%

Revenue ¥5.48B, −32,8% YoY; Operating income −104,7% YoY.

• ▍Revenue ¥5.48B, −32,8% YoY
• ▍Operating income −104,7% YoY
• ▍Net income −89,8% YoY
• ▍Free cash flow −506,8% YoY
• ▍Net margin -54.6%

Revenue ¥8.15B; Operating income -¥1.91B.

• ▍Revenue ¥8.15B
• ▍Operating income -¥1.91B
• ▍Net margin -19.4%