Shenzhen Airport Co Ltd

Shenzhen Airport Co Ltd maintains a capital structure characterized by significant leverage, with long-term debt of 10.97 billion CNY against total equity of 11.63 billion CNY, resulting in a debt-to-equity ratio of 0.94. The balance sheet shows total assets of 24.71 billion CNY and total liabilities of 13.08 billion CNY. Liquidity is supported by a current ratio of 2.36, indicating sufficient short-term assets 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.

Profitability metrics indicate modest returns on capital. The company reports a return on equity (ROE) of 4.14% and a return on assets (ROA) of 1.95%. For the latest period, revenue stood at 5.13 billion CNY, with gross profit of 1.09 billion CNY and operating income of 653.08 million CNY. Net income was 525.21 million CNY. The valuation multiples reflect these returns, with a price-to-earnings (P/E) ratio of 27.59 and an EV/EBITDA of 38.17, suggesting the market prices in stable, albeit slow, growth or asset value rather than high earnings yield. The price-to-book ratio is 1.14, close to tangible book value.

Segment and geographic data are not explicitly detailed in the provided financial snapshot, but the company’s primary activity is centered on Shenzhen Airport. Revenue concentration is inherently high in the single major airport asset. The business model relies on passenger traffic volumes and associated commercial leases, which are subject to macroeconomic travel trends. Without specific segment breakdowns, the analysis assumes the reported revenue figures represent the consolidated operations of the airport entity.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current revenue of 5.13 billion CNY serves as the baseline. The free cash flow of 764.37 million CNY, derived from operating cash flow of 1.84 billion CNY less capital expenditures of 481.54 million CNY, indicates the company generates positive cash after maintaining its infrastructure. This cash generation supports debt servicing and potential dividends, though the high debt load constrains aggressive expansion without external financing.

Risk factors include medium liquidity risk and low dilution risk. The key flag of negative net cash after debt subtraction underscores the importance of maintaining access to credit markets and stable cash flows. The debt-to-equity ratio of 0.94 is manageable but requires monitoring, especially in a rising interest rate environment. The absence of significant dilution risk suggests the share count of 2.05 billion shares is stable, with no immediate plans for large-scale equity issuance.

Recent events and analyst sentiment show a mean price target of 7.72 CNY, with a median of 7.45 CNY, implying upside from the current market price of 6.48 CNY. The mean recommendation is 2.80, leaning towards a hold stance, with three hold ratings and one strong buy. This suggests analysts view the stock as fairly valued with limited near-term catalysts for significant re-rating, despite the potential for recovery in travel volumes.

Revenue grew 11.6% annually over four years, reaching 5.13 billion CNY in 2026, demonstrating strong top-line expansion.

Operating margin of 12.5% significantly exceeds the 7.5% cohort median, indicating superior operational efficiency relative to peers.

Free cash flow surged 32.6% year-over-year to 764 million CNY, highlighting strong cash generation potential.

Analysts project 13.9% upside to a mean price target of 7.73 CNY, suggesting undervaluation at current levels.

Return on equity of 4.1% lags the 7.9% cohort median, signaling inefficient capital utilization compared to industry peers.

High credit risk flags indicate significant potential for financial distress or default, posing a severe threat to stability.

Debt-to-equity ratio of 0.94 is more than double the 0.40 cohort median, implying elevated leverage and financial risk.

Medium liquidity risk suggests potential difficulties in meeting short-term obligations, constraining operational flexibility.

Capex intensity is in the bottom quartile, potentially indicating underinvestment in future growth or infrastructure maintenance.

Revenue ¥1.29B, +1,2% YoY; Operating income −55,0% YoY.

• ▍Revenue ¥1.29B, +1,2% YoY
• ▍Operating income −55,0% YoY
• ▍Net income −50,9% YoY
• ▍Net margin 4.4%

Revenue ¥1.31B, +8,0% YoY; Operating income −0,2% YoY.

• ▍Revenue ¥1.31B, +8,0% YoY
• ▍Operating income −0,2% YoY
• ▍Net income +2,2% YoY
• ▍Net margin 11.9%

Revenue ¥1.27B; Operating income ¥172.7M.

• ▍Revenue ¥1.27B
• ▍Operating income ¥172.7M
• ▍Net margin 9.1%

Revenue ¥1.21B; Operating income ¥192.7M.

• ▍Revenue ¥1.21B
• ▍Operating income ¥192.7M
• ▍Net margin 12.6%

Revenue ¥1.12B; Operating income ¥101.1M.

• ▍Revenue ¥1.12B
• ▍Operating income ¥101.1M
• ▍Net margin 7.1%

Revenue ¥5.13B, +8,2% YoY; Operating income +12,9% YoY.

• ▍Revenue ¥5.13B, +8,2% YoY
• ▍Operating income +12,9% YoY
• ▍Net income +18,6% YoY
• ▍Free cash flow +32,6% YoY
• ▍Net margin 10.2%

Revenue ¥4.74B, +13,8% YoY; Operating income +19,0% YoY.

• ▍Revenue ¥4.74B, +13,8% YoY
• ▍Operating income +19,0% YoY
• ▍Net income +11,7% YoY
• ▍Free cash flow −23,3% YoY
• ▍Net margin 9.3%

Revenue ¥4.16B, +55,9% YoY; Operating income +134,0% YoY.

• ▍Revenue ¥4.16B, +55,9% YoY
• ▍Operating income +134,0% YoY
• ▍Net income +135,3% YoY
• ▍Free cash flow +176,4% YoY
• ▍Net margin 9.5%

Revenue ¥2.67B, −19,2% YoY; Operating income −12 232,2% YoY.

• ▍Revenue ¥2.67B, −19,2% YoY
• ▍Operating income −12 232,2% YoY
• ▍Net income −3 163,6% YoY
• ▍Free cash flow −1,4% YoY
• ▍Net margin -42.1%

Revenue ¥3.31B; Operating income -¥11.6M.

• ▍Revenue ¥3.31B
• ▍Operating income -¥11.6M
• ▍Net margin -1.0%