China Southern Airlines Company Limited

1055
Failed

Company Overview

The Group is the airline with the largest number of aircraft transport, the most developed route network, and the largest annual passenger volume in China. The company is headquartered in Guangzhou, and has 21 branches including Beijing and Shenzhen, and 7 holding airline subsidiaries including Xiamen Airlines. The company has 6 bases, 21 domestic sales departments, and 53 overseas sales departments across all continents. As of the end of the reporting period, the Group operated 894 passenger and cargo transport aircraft, including the Boeing 787, 777, 737 series, Airbus 380, 350, 330 and 320 series, and COMAC's ARJ series. In June 2018, the company won the “Flight Safety Diamond Two Star Award”, the highest award for flight safety in China's civil aviation. In recent years, the company has focused on building a route network structure with hubs as the core, strategic key markets as the key, and market development as support, and has focused on building two comprehensive international hubs in Guangzhou and Beijing, and the form of a networked airline has gradually taken shape. In 2022, the company continued to deeply cultivate the Guangdong-Hong Kong-Macao Greater Bay Area, and China Southern Airlines had a market share of nearly 48.5% in Guangzhou. At the same time, the company insists on refining and improving the Beijing hub. The company's share of Daxing Airport has now exceeded 50%, making it the largest main base company. China Southern Airlines has formed a new development pattern of “North and South echoing each other and flying hand in hand”.

Country
HK
Market Cap
$7.69B
Last Fiscal Year
2023
Final Shariah Status
Failed
Compliance Analysis Overview

Shariah Compliance Benchmarks:

  • Business Compliance: Non-Shariah compliant revenue must be less than 5% of total revenue
  • Liabilities Compliance: Interest-bearing debt must be less than 33% of market capitalization
Business Compliance
0.63% passed
5% Threshold
0.6%
Liabilities Compliance
213.32% failed
33% Threshold
213.3%
Final Shariah Status
Failed

This stock does not meet all Shariah compliance criteria according to AAOIFI standards.

Stock Information
Name China Southern Airlines Company Limited
Ticker 1055
Main Business Airlines
Type Common Stock
Industry Airlines
Country HK
Market Cap $7.69 B

Shariah Analysis Breakdown

Business compliance Breakdown
Revenue Segment Value ($M) Non-Compliant ($M) Reason
Air Transport Division $71,320.0 $0.0 -
Other business divisions $3,060.0 $0.0 -
Interdivisional offset $-2,550.0 $0.0 -
Interest income $457.0 $457.0 -
Total $72,287.0 $457.0 0.63% (passed)
Liabilities Compliance Breakdown
Liability Item Value ($M) % of Market Cap
bank loans and overdrafts $9,200,280,112.0 119.65%
derivative financial instrument current liabilities $127,030,812.3 1.65%
long term bank loan $7,075,630,252.1 92.02%
Total Interest-Bearing Debt $16,402,941,176.5 213.32%
Market Capitalization $7,689,384,615.4 100.00%
Compliance Status Threshold: 33% failed