China Aviation Oil

China Aviation Oil poised to take off this year with compelling valuations, strong passenger traffic recovery: RHB

SINGAPORE (Mar 27): RHB Research is upgrading its call on China Aviation Oil (CAO) to “buy” from “hold”, while raising its target price on the stock by 10 cents to $1.60 to suggest 26% upside plus 3.6% yield.

This comes as the research house expects CAO to benefit from signs of a strong recovery in international passenger growth in China, in addition to the anticipated capacity constraints of its 33%-owned associate, Shanghai Pudong International Airport (SPIA).

Singapore's transport sector is stuck in a jam: DBS

SINGAPORE (Dec 21): DBS has a “neutral” rating on Singapore’s transport sector in 2019, with hopes that a better-than-expected economic growth and activity globally would help improve demand volume and pricing for the transport sector.

This in turn should help improve ROEs, which have been under pressure for the past few years.

The research house has ComfortDelGro and ST Engineering as its top “buy” picks. Meanwhile, for air travel growth proxies, DBS likes SATS and China Aviation Oil (CAO).

Uptrend for these six S-chips seems to have stalled

SINGAPORE (June 9): Six S-chips on the uptrend are coming under short-term pressure given certain H-shares in Hong Kong have become the focus of attacks by short sellers of late.

In the past month, Man Wah Holdings, formerly listed on the Singapore Exchange, and AAC Technologies were attacked by short sellers. Last December, China Huishan Dairy was also hit, forcing it to suspend trading earlier this month.

FCL, SBS Transit, UOI, Keppel REIT, China Aviation Oil

SINGAPORE (April 20): Here are some stocks that could move the market this Thursday morning.

Frasers Centrepoint’s Australian division and its JV partner is selling Sydney’s Four Points by Sheraton hotel in Central Park and some associated office space for nearly $190 million. Shares of FCL closed 9 cents higher at $1.88 on Wednesday.

Meet the potential winners amid Fed rate hikes

SINGAPORE (March 17): Rising interest rates on the back of US Fed rate hikes should favour banks, property developers, and stocks with yield backed by net cash, says DBS Group Research.

In line with expectations, the US Federal Reserve raised Fed funds rate up 25 basis points to 1%, and continued to project two more increases this year.

CIMB starts coverage of CAO with ‘add’ rating

SINGAPORE (Jan 17): CIMB has initiated coverage for China Aviation Oil with an “add” recommendation, as the group is believed to be the best proxy to China’s growing international air travel.

CIMB analysts Cezzane See and Lim Siew Kee pointed out that CAO is the only jet fuel importer to China, and supplies between 30% and 40% of China’s total jet fuel supply. CAO’s jet fuel supply is strictly used for outbound flights from China.

A case for defensive transport stocks

SINGAPORE (Dec 20): DBS is recommending the transport-related sector for its defensive and resilient nature plus strong balance sheet to weather the continuing uncertainty.

DBS analysts Paul Yong and Suvro Sarkar noted that organic growth will be limited for the transport companies. For one, lower fuel costs are expected to translate into lower fares for ComfortDelgro and lower ticket prices for SIA Group.

5 underperforming small and mid caps to bet on

Katrina Group

SINGAPORE (Dec 13): DBS Group Research is sticking to its top stock picks for small- and mid-cap companies, even as the research house’s conviction picks closed 3.2% lower on average in Nov.

For Dec, DBS says it is continuing to stand by its top picks which had underperformed last month.

These are: China Aviation Oil, Cityneon Holdings, CNMC Goldmine, Katrina Group, and Singapore O&G.

Of the five, only China Aviation Oil saw its share price climb, gaining 4.9% in Nov.

China Aviation Oil takes flight to record earnings

SINGAPORE (Nov 4): DBS Group Research has reiterated its “buy” recommendation for China Aviation Oil, after the jet fuel traded posted an unexpected 31% earnings growth to US$23.2 million ($32.2 million) in 3QFY16.

The earnings boost came from one-offs like mark-to-market inventory gains and favourable currency movements among the group’s associates.

China Aviation Oil beats expectations to get an upgrade

SINGAPORE (Nov 3): RHB is upgrading China Aviation Oil (CAO) to a “buy” with target price of $1.61 after the jet fuel supplier announced forecast-beating results.

(See also: China Aviation Oil reports 31% surge in earnings of US$23.2 mil)

In a Thursday report, analyst Shekhar Jaiswal notes that CAO’s performance was mainly driven by strong growth posted by associates.

Be informed of the stories that matter