What the broker says

China Southern Airlines, headquartered in Guangzhou, provides commercial airline services throughout the mainland, Southeast Asia and elsewhere. The company also provides other airline-related services, including aircraft maintenance and catering.

A recent Core Pacific-Yamaichi report placed a 'buy' recommendation on China Southern's stock citing the brokerage's assumption that the airline would emerge as one of the major winners from merger and acquisition activity in the industry.

The airline reported 46.1 per cent growth in net profit to 347.8 million yuan (about HK$325.61 million) for the six months to June. A 10 per cent increase was achieved in passenger figures while cargo grew 27.5 per cent.

Graphic: NOW08gwz