| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 28.65 | 56 |
| Intrinsic value (DCF) | 22.77 | 24 |
| Graham-Dodd Method | 11.94 | -35 |
| Graham Formula | 19.21 | 5 |
Xiamen International Airport Co., Ltd. is a prominent airport operator based in Xiamen, China, serving as a critical aviation hub in the Fujian province. Founded in 1983 and listed on the Shanghai Stock Exchange, the company operates Xiamen Gaoqi International Airport, which connects numerous domestic and international destinations across Southeast Asia, Northeast Asia, Europe, North America, and Australia. Beyond core airport operations, the company diversifies its revenue streams through air cargo terminal services, office leasing, aviation logistics, e-commerce, advertising media, and various ancillary services. As a subsidiary of Xiamen Iport Group Co., Ltd., the company benefits from strategic government support and regional economic development initiatives. Xiamen International Airport plays a vital role in China's aviation infrastructure, facilitating trade, tourism, and economic growth in the Yangtze River Delta region and beyond. The company's comprehensive service portfolio and strategic location make it an essential player in China's transportation and logistics sector.
Xiamen International Airport presents a stable investment opportunity with moderate growth potential, characterized by its defensive business model and strategic regional positioning. The company demonstrates solid financial health with CNY 431 million net income, strong operating cash flow of CNY 702 million, and manageable debt levels of CNY 66 million. The beta of 0.389 indicates lower volatility compared to the broader market, appealing to risk-averse investors. However, the company faces headwinds from China's economic slowdown, potential regulatory changes in the aviation sector, and competition from other regional airports. The dividend yield of approximately 2.1% (based on current market cap) provides income support, but growth may be constrained by capital expenditure requirements and dependence on passenger traffic recovery post-pandemic. Investors should monitor China's economic policies and regional development initiatives that could impact airport utilization rates.
Xiamen International Airport occupies a strategically important position as the primary aviation gateway for Xiamen and the surrounding Fujian province, benefiting from its coastal location and proximity to Taiwan. The company's competitive advantage stems from its regional monopoly position as the only major airport serving the Xiamen metropolitan area, which has a population of over 5 million and serves as a major economic and tourist destination. Its comprehensive service portfolio spanning passenger terminal operations, cargo handling, and commercial services creates multiple revenue streams and enhances operational efficiency. The airport's extensive route network connecting to key Asian markets and growing international destinations provides a structural advantage. However, the company faces competition from other regional airports in China, particularly those in the Pearl River Delta and Yangtze River Delta regions that serve overlapping catchment areas. The competitive landscape is also shaped by high-speed rail networks that offer alternative transportation options for shorter domestic routes. The company's subsidiary status under Xiamen Iport Group provides government support but may also introduce bureaucratic inefficiencies. Future competitiveness will depend on capacity expansion, service quality improvements, and adapting to evolving passenger and cargo demand patterns in the post-pandemic era.