Home Capital Broker's Calls

China Aviation Oil kept at 'buy' by RHB on diversification strategy, long-term growth prospects

Uma Devi
Uma Devi1/21/2020 03:56 PM GMT+08  • 3 min read
China Aviation Oil kept at 'buy' by RHB on diversification strategy, long-term growth prospects
Given CAO's zero debt balance sheet and significant net cash position (24% of its market cap), analyst Shekhar Jaiswal believes that the group is able to undertake a "sizable earnings-accretive acquisition."
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Jan 21): RHB Group Research is reiterating its “buy” call on China Aviation Oil (CAO) with a target price of $1.55, representing a 21% upside for the stock.

In a Tuesday report, RHB analyst Shekhar Jaiswal continues to remain sanguine on the group’s long-term growth prospects, which could well be boosted by the continuing rise in China’s aviation traffic, as well as the group’s diversification into jet fuel supply to non-Chinese markets.

Firstly, Jaiswal highlights how a 17% hike in China’s international aviation passenger traffic could bode well for CAO, as all international flights flying out of China are required to use imported jet fuel.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.