Analysts from DBS Group Research and RHB Group Research have maintained “buy” on China Aviation Oil (CAO) with higher target prices of $1.38 and $1.30 respectively, from $1.20 and $1.27 previously.

The upbeat recommendations come despite CAO’s 43.7% y-o-y decline in net profit of US$56.2 million ($72.4 million) for the FY2020 ended December, and 48.3% y-o-y lower revenue of US$10.52 billion posted on Feb 26.

Viewing the worst for the aviation sector as behind them, DBS analysts Paul Yong and Jason Sum are positive that CAO’s earnings look set to recover “firmly” in the next 12 months.

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