| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 28.20 | -8 |
| Intrinsic value (DCF) | 13.38 | -57 |
| Graham-Dodd Method | 16.99 | -45 |
| Graham Formula | 15.30 | -50 |
Shanghai International Airport Co., Ltd. operates as a critical aviation infrastructure provider in China's largest economic hub, serving as the primary operator of Shanghai Pudong International Airport. As a subsidiary of Shanghai Airport (Group) Co., Ltd., the company delivers comprehensive airport services including customs inspection, security screening, flight operations, air cargo handling, VIP services, and ground agent operations. The company also generates revenue through advertising, aircraft fueling, business aviation services, and hotel operations. Positioned in the industrials sector within the airlines, airports, and air services industry, Shanghai International Airport benefits from its strategic location in China's financial capital, serving as a major international gateway connecting Asia with global destinations. The company plays a vital role in China's aviation infrastructure, supporting both passenger travel and cargo logistics while capitalizing on the growing demand for air transportation in the world's second-largest economy.
Shanghai International Airport presents a mixed investment profile with several attractive fundamentals and notable risks. The company demonstrates solid operational performance with CNY 12.37 billion in revenue and CNY 1.93 billion net income, supported by strong operating cash flow of CNY 5.53 billion. With a market capitalization of CNY 79.83 billion and a beta of 0.538, the stock shows defensive characteristics relative to the broader market. However, investors should note the significant total debt of CNY 17.69 billion against cash reserves of CNY 14.85 billion, indicating moderate leverage. The dividend yield appears reasonable with CNY 0.40 per share, but the company's performance remains sensitive to China's economic growth, international travel patterns, and government aviation policies. The capital expenditure of CNY -1.96 billion suggests ongoing infrastructure investments that may pressure short-term returns but could enhance long-term capacity and competitive positioning.
Shanghai International Airport maintains a dominant competitive position as one of China's premier aviation hubs, benefiting from strategic location advantages and scale economies. The company's competitive advantage stems from its monopoly position in operating Shanghai Pudong International Airport, which serves as China's primary international gateway and a major cargo hub. This strategic positioning allows the company to capture high-value international traffic and premium airline customers. The integrated service offering spanning passenger processing, cargo handling, fueling, and commercial services creates significant cross-selling opportunities and revenue diversification. However, the company faces competition from other major Chinese airport operators and regional aviation hubs. Regulatory constraints and government pricing controls may limit pricing power, while the capital-intensive nature of airport operations creates high barriers to entry but also requires continuous infrastructure investment. The company's relationship with its parent company, Shanghai Airport Group, provides operational synergies but may also create dependency risks. Competitive positioning is further strengthened by Shanghai's status as China's financial capital, ensuring sustained demand for both business and leisure travel.