Shenzhen Airport Co., Ltd. (000089.SZ) Bundle
Shenzhen Airport Co., Ltd. (000089.SZ) presents a mixed but data-rich picture for investors: trailing revenue climbed to CNY 4.74 billion in FY2024 (+13.80% y/y, with a three‑year upward trend and TTM growth of 11.45%), revenue per employee is about CNY 938,946 across 5,446 staff, and non‑aeronautical streams are driving top‑line strength, yet profitability shows strain-FY2024 net income was CNY 443 million (net margin ~9.3%, EPS CNY 0.28, P/E 24.19) while recent results include a reversal to a substantial attributable net loss of HK$675.3 million and operating profit before revaluation losses plunging from HK$132.1 million to HK$12.7 million; balance‑sheet and liquidity metrics reveal total assets of CNY 24.2 billion against liabilities of CNY 12.7 billion (debt/equity ~0.85), a current ratio of 2.20, interest coverage of 2.66, cash and equivalents of CNY 4.1 billion (30 Jun 2025), CapEx of CNY 113.2 million in FY2024 and persistent negative free cash flow, while valuation sits at market cap CNY 14.23 billion with P/S 2.78, EV CNY 19.62 billion (EV/EBITDA 10.73), P/B 1.24 and P/FCF 9.95-forecasts point to earnings and revenue growth of 17.6% and 7.3% p.a. respectively and EPS growth of 19.1% p.a., so read on for the full breakdown of these figures and what they mean for investment decisions.
Shenzhen Airport Co., Ltd. (000089.SZ) - Revenue Analysis
In the fiscal year ending December 31, 2024, Shenzhen Airport Co., Ltd. (000089.SZ) reported revenue of CNY 4.74 billion, up 13.80% from CNY 4.16 billion in 2023. Revenue growth has trended positively over the past three years, supported increasingly by non-aeronautical income streams such as retail concessions, rental income and parking services.- 2024 revenue: CNY 4.74 billion (↑13.80% year-over-year)
- 2023 revenue: CNY 4.16 billion (↑55.91% year-over-year)
- 2022 revenue growth: ↑10.31%
- TTM revenue growth rate: 11.45%
- Revenue per employee: ≈ CNY 938,946 (5,446 employees)
- Market capitalization: CNY 14.23 billion; P/S ratio: 2.78
- Non-aeronautical revenue: increasingly material to overall top-line expansion (retail, rentals, parking)
| Metric | 2022 | 2023 | 2024 | TTM / Current |
|---|---|---|---|---|
| Total Revenue (CNY bn) | - | 4.16 | 4.74 | - |
| YoY Revenue Growth | 10.31% | 55.91% | 13.80% | 11.45% (TTM) |
| Employees | - | - | 5,446 | - |
| Revenue per Employee (CNY) | - | - | 938,946 | - |
| Market Capitalization (CNY bn) | - | - | 14.23 | - |
| Price-to-Sales (P/S) | - | - | 2.78 | - |
Shenzhen Airport Co., Ltd. (000089.SZ) - Profitability Metrics
Key profitability figures for Shenzhen Airport Co., Ltd. (000089.SZ) show a company that delivered modest profits in 2024 but faced a pronounced deterioration into 2025 across several measures.
| Metric | 2024 | 2025 | Notes / Currency |
|---|---|---|---|
| Net income (attributable) | CNY 443 million | Net loss HK$675.3 million | 2024 reported in CNY; 2025 reported in HK$ (company disclosures) |
| Net profit margin | ~9.3% | Negative | Declined from positive margin in 2024 to negative in 2025 |
| Earnings per share (EPS) | CNY 0.28 | - | EPS reported for 2024; market P/E based on this EPS |
| Price-to-Earnings (P/E) | 24.19 | - | Implied investor expectations using 2024 EPS |
| Return on Equity (ROE) | 5.11% | - | Moderate profitability vs. shareholders' equity (2024) |
| Operating profit before revaluation losses | HK$132.1 million | HK$12.7 million | Sharp decline in operating earnings year-on-year |
| Net profit (prior year) | - | HK$4.6 million (previous year) | Reference point showing reversal to loss in 2025 |
- 2024 reported net income: CNY 443 million, net profit margin ≈ 9.3%.
- EPS for 2024: CNY 0.28; market P/E: 24.19, reflecting growth expectations priced in by investors.
- ROE (2024): 5.11%, indicating modest return on shareholder capital.
- Operating profit before revaluation losses plunged from HK$132.1M to HK$12.7M, signaling operational pressure.
- Company swung to a substantial net loss attributable to equity holders of HK$675.3M in 2025 from a small profit (HK$4.6M) the prior year.
- Net profit margin moved from +9.3% (2024) to a negative margin in 2025, highlighting margin compression and potential one-off or recurring losses.
For context on corporate direction that may affect future profitability, see the company's stated priorities: Mission Statement, Vision, & Core Values (2026) of Shenzhen Airport Co., Ltd.
Shenzhen Airport Co., Ltd. (000089.SZ) - Debt vs. Equity Structure
As of June 30, 2025, Shenzhen Airport Co., Ltd. reported total assets of CNY 24.2 billion and total liabilities of CNY 12.7 billion, implying a debt-to-equity ratio of approximately 0.85. Liquidity and solvency metrics point to adequate short-term coverage but constrained cash generation versus investment needs.- Debt-to-equity ratio (6/30/2025): ~0.85
- Current ratio: 2.20 - sufficient short-term assets to cover short-term liabilities
- Interest coverage ratio: 2.66 - operating income covers interest expense by ~2.7x
- Free cash flow: negative - operations not generating enough cash to cover CapEx and debt obligations
| Metric | Value | As of |
|---|---|---|
| Total assets | CNY 24.2 billion | June 30, 2025 |
| Total liabilities | CNY 12.7 billion | June 30, 2025 |
| Debt-to-equity ratio | 0.85 | June 30, 2025 |
| Current ratio | 2.20 | June 30, 2025 |
| Interest coverage ratio | 2.66 | Latest reported |
| Total liabilities (Q1) | CNY 12.9 billion | March 31, 2025 |
| Total liabilities (FY 2024) | CNY 12.8 billion | December 31, 2024 |
| CapEx (FY 2024) | CNY 113.2 million | FY 2024 |
| Free cash flow | Negative (insufficient cash from ops to cover CapEx & debt) | Latest reported |
- Liability trend: relatively stable between CNY 12.8-12.9 billion across end-2024 to Q1-2025, falling to CNY 12.7 billion by 6/30/2025.
- Investment pace: CapEx of CNY 113.2 million in 2024 signals continued infrastructure spending despite negative free cash flow.
- Coverage constraints: interest coverage of 2.66 provides cushion but leaves limited room if operating income weakens or interest costs rise.
- Balance-sheet posture: current ratio 2.20 supports short-term obligations, but negative free cash flow suggests reliance on financing or asset management to fund ongoing investments and debt service.
Shenzhen Airport Co., Ltd. (000089.SZ) - Liquidity and Solvency
Key liquidity and solvency metrics show a mixed profile: sufficient short-term coverage by traditional ratios, meaningful operating cash generation for FY2024, but pressure from declining profitability, high leverage and negative free cash flow.
- Current ratio: 2.20 - indicates sufficient short-term assets to cover short-term liabilities.
- Interest coverage ratio: 2.66 - operating income covers interest expense ~2.66x, leaving limited margin for earnings volatility.
- Operating cash flow (FY2024): CNY 1.91 billion - strong cash generation from core operations for the year ending 31 Dec 2024.
- Free cash flow: Negative - the company is not generating enough cash after capex and financing items to be net positive.
- Cash & cash equivalents (30 Jun 2025): CNY 4.10 billion - a short-term liquidity buffer.
- Liquidity pressure: declining profitability and sustained leverage raise concerns about short-term obligation coverage despite available cash.
| Metric | Value | Reference Date / Period |
|---|---|---|
| Current Ratio | 2.20 | Latest reported |
| Interest Coverage Ratio | 2.66 | Latest reported |
| Operating Cash Flow | CNY 1.91 billion | FY ended 31 Dec 2024 |
| Free Cash Flow | Negative (net outflow) | Latest reporting period |
| Cash & Cash Equivalents | CNY 4.10 billion | As of 30 Jun 2025 |
| Leverage / Qualitative | High; contributes to liquidity pressure | Ongoing |
- Strengths: current ratio >2, solid FY2024 operating cash generation, CNY 4.1bn cash buffer as of mid‑2025.
- Risks: negative free cash flow, declining profitability, and high leverage that compress interest coverage and raise refinancing risk.
- Investor considerations: monitor quarterly operating cash conversion, capex schedule, debt maturities, and any asset disposals or equity raises that could relieve pressure.
Related reading: Shenzhen Airport Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
Shenzhen Airport Co., Ltd. (000089.SZ) - Valuation Analysis
Shenzhen Airport Co., Ltd. (000089.SZ) shows a moderate valuation profile across multiple commonly used metrics, reflecting steady recent revenue growth and investor expectations for continued earnings performance.- Market capitalization: CNY 14.23 billion - equity market value currently assigned by investors.
- Price-to-Sales (P/S): 2.78 - indicates the stock is trading at about 2.78 times trailing revenues.
- TTM revenue growth: 11.45% - year-over-year expansion over the trailing twelve months, supporting the valuation.
- TTM EPS: CNY 0.28 with P/E of 24.19 - investors pay roughly 24× trailing earnings, reflecting growth expectations.
- Enterprise Value (EV): CNY 19.62 billion with EV/EBITDA of 10.73 - moderate multiple versus operating cash-profitability.
- Price-to-Book (P/B): 1.24 - trading slightly above book value.
- Price-to-Free Cash Flow (P/FCF): 9.95 - suggests reasonable pricing relative to cash generation after capital expenditures.
| Metric | Value | Interpretation |
|---|---|---|
| Market Capitalization | CNY 14.23 billion | Market value of equity |
| P/S | 2.78 | Moderate revenue multiple |
| TTM Revenue Growth | 11.45% | Recent sustained top-line growth |
| TTM EPS | CNY 0.28 | Trailing earnings per share |
| P/E | 24.19 | Market is pricing future earnings growth |
| Enterprise Value (EV) | CNY 19.62 billion | Total firm valuation (debt + equity - cash) |
| EV/EBITDA | 10.73 | Moderate valuation relative to operating profitability |
| P/B | 1.24 | Trading slightly above net asset value |
| P/FCF | 9.95 | Reasonable multiple on free cash flow |
- Investor takeaway - the blend of a double-digit revenue growth rate (11.45%) with mid-teens-to-twenties earnings multiples (P/E 24.19, EV/EBITDA 10.73) positions Shenzhen Airport as a company with moderate valuation premia justified by operational recovery and cash-generation metrics.
- Relative valuation considerations include comparing P/S (2.78), P/B (1.24) and P/FCF (9.95) to peers in Chinese airport operators and broader infrastructure to assess attractivity.
- For background on the company's business model and ownership structure, see: Shenzhen Airport Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
Shenzhen Airport Co., Ltd. (000089.SZ) Risk Factors
Shenzhen Airport Co., Ltd. (000089.SZ) faces several material risks that materially affect its near-term financial stability and investor outlook. The company recorded a net loss attributable to equity holders of HK$675.3 million for the latest period, a sharp reversal from a net profit of HK$4.6 million in the prior year. Operational earnings have deteriorated sharply: operating profit before revaluation losses declined from HK$132.1 million to HK$12.7 million. Free cash flow is negative, signaling that operating cash generation is insufficient to cover capital expenditures and debt service. Liquidity is under pressure as declining profitability combines with relatively high leverage, raising short-term solvency concerns. Total liabilities stood at CNY 12.9 billion as of March 31, 2025, versus CNY 12.8 billion as of December 31, 2024, indicating stable but substantial absolute debt levels. The interest coverage ratio of 2.66 implies limited headroom to absorb interest expense shocks.- Sharp reversal to a net loss: HK$675.3 million loss vs. HK$4.6 million profit previously.
- Severely eroded operational earnings: operating profit before revaluation losses fell to HK$12.7 million from HK$132.1 million.
- Negative free cash flow: operations do not generate sufficient cash to fund capex and debt repayments.
- Liquidity pressure: declining margins and high leverage strain short-term obligations.
- Substantial liabilities: CNY 12.9 billion (Mar 31, 2025) vs. CNY 12.8 billion (Dec 31, 2024).
- Modest interest coverage: ratio of 2.66 - limited buffer against earnings volatility.
| Metric | Latest Reported | Prior Period | Currency |
|---|---|---|---|
| Net profit/(loss) attributable to equity holders | -675.3 | 4.6 | HK$ million |
| Operating profit before revaluation losses | 12.7 | 132.1 | HK$ million |
| Free cash flow | Negative (reported) | - | HK$ / reported |
| Total liabilities | 12,900.0 | 12,800.0 | CNY million |
| Interest coverage ratio | 2.66 | - | times |
Shenzhen Airport Co., Ltd. (000089.SZ) - Growth Opportunities
Shenzhen Airport Co., Ltd. (000089.SZ) presents a mix of operational recovery potential and valuation metrics that suggest room for investor interest as traffic and ancillary businesses rebound. Key forecasted growth and financial ratios indicate improving profitability and a moderate market valuation relative to cash flow and earnings.
- Forecast earnings growth: 17.6% per annum
- Forecast revenue growth: 7.3% per annum
- Forecast EPS growth: 19.1% per annum
- Projected ROE in 3 years: 6.8%
Valuation and cash-flow indicators provide context for how the market is pricing future growth:
| Metric | Value | Notes |
|---|---|---|
| Enterprise Value (EV) | CNY 19.62 billion | Base market enterprise sizing |
| EV / EBITDA | 10.73 | Moderate multiple vs. peers |
| Price / Book (P/B) | 1.24 | Trading at slight premium to book value |
| Price / Free Cash Flow (P/FCF) | 9.95 | Reasonable valuation vs. FCF generation |
| Forecast Earnings CAGR | 17.6% p.a. | Indicates accelerating profitability |
| Forecast Revenue CAGR | 7.3% p.a. | Steady top-line recovery |
| Forecast EPS CAGR | 19.1% p.a. | EPS growth outpacing revenue |
| Forecast ROE (3 years) | 6.8% | Potential improvement in shareholder returns |
- Operational leverage: EPS rising faster than revenue suggests margin expansion or non-operating gains supporting earnings growth.
- Valuation cushion: EV/EBITDA ~10.7 and P/FCF ~9.95 imply the market is not assigning a stretched multiple, leaving room for rerating if traffic and non-aeronautical income recover.
- Balance-sheet perspective: P/B of 1.24 signals modest premium - investors are paying slightly above book for growth prospects without extreme froth.
- Key dependency: Realization of forecasts depends on passenger traffic recovery, cargo trends, and successful monetization of airport retail and services.
For more on the company's background, ownership and how it makes money, see: Shenzhen Airport Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
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