Spring Airlines Co Ltd
SSE:601021

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Spring Airlines Co Ltd
SSE:601021
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Price: 58.16 CNY 1.7%
Market Cap: 56.9B CNY
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Gross Margin
Spring Airlines Co Ltd

12.4%
Current
-5%
Average
33.7%
Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
12.4%
=
Gross Profit
2.5B
/
Revenue
19.8B

Gross Margin Across Competitors

Country CN
Market Cap 56.4B CNY
Gross Margin
12%
Country US
Market Cap 40.4B USD
Gross Margin
50%
Country US
Market Cap 33.3B USD
Gross Margin
62%
Country CH
Market Cap 19.5B CHF
Gross Margin N/A
Country IE
Market Cap 15.4B EUR
Gross Margin
40%
Country IN
Market Cap 1.8T INR
Gross Margin
40%
Country US
Market Cap 20.6B USD
Gross Margin
70%
Country UK
Market Cap 14.8B GBP
Gross Margin
65%
Country CN
Market Cap 134.4B CNY
Gross Margin
4%
Country CN
Market Cap 120B CNY
Gross Margin
7%
Country SG
Market Cap 19B SGD
Gross Margin
48%
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Spring Airlines Co Ltd
Glance View

Market Cap
56.9B CNY
Industry
Airlines

In the dynamic landscape of China's aviation industry, Spring Airlines Co. Ltd. stands as a testament to innovative approaches in affordable air travel. Founded in 2004, this Shanghai-based carrier has ingeniously carved out a niche by focusing on the low-cost airline model. Unlike traditional carriers heavily burdened by high operating costs, Spring Airlines keeps a sharp focus on efficiency and cost-cutting strategies. They achieve this through a streamlined fleet, primarily consisting of Airbus A320s, which eases maintenance costs and simplifies training requirements. By offering competitive pricing, punctual flights, and leveraging lightly-trafficked secondary airports, the company captures a broad demographic who crave budget-friendly options without sacrificing much on comfort and safety. Revenue for Spring Airlines is driven primarily through ticket sales, but its unique revenue stream capitalization doesn't stop there. The airline comprehensively monetizes ancillary services, including baggage fees, seat selection, onboard meals, and other amenities for budget-conscious travelers, who often appreciate the pay-as-you-use model. Notably, their business model not only ensures profitability but also promises growth potential as the burgeoning Chinese middle class seeks more domestic and international travel options. Spring Airlines has deftly navigated the complexities of a highly regulated market while constantly tweaking its strategies to enhance customer satisfaction and maintain a low-cost edge amid rising competition and fluctuating fuel prices.

Intrinsic Value
82.55 CNY
Undervaluation 30%
Intrinsic Value
Price

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What is Gross Margin?

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
12.4%
=
Gross Profit
2.5B
/
Revenue
19.8B
What is the Gross Margin of Spring Airlines Co Ltd?

Based on Spring Airlines Co Ltd's most recent financial statements, the company has Gross Margin of 12.4%.