China Aviation Oil (CAO)

Sheng Siong wins again; CAO and Olam have highest returns and profit growth respectively

SINGAPORE (Sept 16): Supermarket chain Sheng Siong Group is the overall winner in the commerce sector for the second year running. The company’s return on equity (ROE) of 25.68% made it the leader in this category as well.  

Sheng Siong was founded in 1985 by the Lim family. From just one store, it has grown rapidly, thanks to its focus on keeping the prices of its groceries competitive. As at May, Sheng Siong had a total of 57 stores with a combined retail space of 512,000 sq ft.

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Long-term growth story of China Aviation Oil intact; weaker 2Q results only a blip

SINGAPORE (Aug 15): China Aviation Oil (CAO) reported a 2.9% fall in 2Q19 earnings to US$28.4 million from US$29.3 million in 2Q18.

Revenue increased 2.9% to US$6.0 billion from US$5.8 billion a year ago as total supply and trading volume increased 6.62% to 10.63 million tonnes.

Volume for jet fuel rose 19.41% to 4.06 million tonnes. Volume for gas oil rose 44.35% to 1.66 million tonnes for 2Q19. However, volume of other oil products fell 9.41% to 4.91 million tonnes.

China Aviation Oil kept at 'buy' by RHB on long-term growth of China's aviation passenger traffic

SINGAPORE (June 11): RHB is reiterating its “buy” call on China Aviation Oil (CAO) with a target price of $1.60.

RHB remains upbeat on the long-term growth of China’s aviation passenger traffic, in line with its rising per capita income and expanding aviation infrastructure.

"We conservatively expect CAO’s near-term earnings to be driven by increasing jet fuel supply to China and more jet fuel being pumped by Shanghai Pudong International Airport (SPIA), which accounts for 65% of pre-tax profit," says analyst Shekhar Jaiswal in a Tuesday report.

China Aviation Oil kept at 'buy' by RHB with air traffic growth

SINGAPORE (May 28): RHB Research says the decline in China Aviation Oil’s share price in the last one month is unwarranted.

Market seems overly concerned about a slowdown in China’s aviation traffic, despite passenger traffic growing by 3.9% y-o-y in April.

“However, aided by growth in China’s international passenger traffic as well as capacity expansion at Shanghai Pudong International Airport (SPIA), we remain positive on CAO’s long-term earnings growth prospects,” says analyst Shekhar Jaiswal.

China Aviation 1Q earnings in line with UOB KayHian and CGS-CIMB forecasts

SINGAPORE (Apr 29): China Aviation Oil’s (CAO) 1Q19 net profit came in line with the expectations of UOB KayHian and CGS-CIMB Research.

See: China Aviation Oil's 1Q earnings fall 2.12% to $35.9 mil on lower revenue

CAO’s 1Q19 earnings fell 2.1% y-o-y to US$26.3 million ($35.8 million) largely driven by lower average oil prices which rebounded in 2Q19.

China Aviation Oil's 1Q earnings fall 2.12% to $35.9 mil on lower revenue

SINGAPORE (April 25): China Aviation Oil (CAO) has announced 1Q19 earnings of US$26.3 million, down 2.12% y-o-y from US$26.9 million a year ago due to lower revenue.

Revenue for the quarter fell 9.37% to US$3.72 billion from US$4.1 billion in 1Q18 on the back of lower oil prices as well as a decrease in overall supply and trading volume.

Notably, a 32.5% decrease in revenue contributions from other oil products to US$960.7 million more than offset a 2.91% improvement in revenue from middle distillates to US$2.76 billion.

More earnings drivers required for China Aviation Oil to be a 'buy', says RHB

SINGAPORE (Mar 1): RHB Research is remaining “neutral” on China Aviation Oil (CAO) after the group reported FY18 earnings of US$94 million ($127 million), up 10% y-o-y and coming in slightly ahead of RHB and consensus estimates on better-than-expected gross profit margin.

The research house has raised its target price on the stock to $1.50 from $1.32 previously as it rolls over its blended valuation to 2019, which implies 9% upside and 4% FY19F yield.

China Aviation Oil posts 23.9% increase in 4Q earnings to $25.2 mil

SINGAPORE (Feb 28): China Aviation Oil (CAO) has announced a 23.88% increase in its 4Q18 earnings to US$18.7 million ($25.2 million), compared to US$15.1 million in 4Q17, mainly from the reduction in operating expenses and increase in gross profit.

This brings FY18 earnings to US$93.9 million, 10.52% higher than US$84.9 million in FY17.

Revenue for 4Q18 was 7.79% higher at US$4.38 billion from US$4.06 billion last year, primarily due to the increase in oil prices.

China Aviation Oil target price slashed on crude oil & currency risks

SINGAPORE (Nov 2): CGS-CIMB Securities is maintaining its “add” call on China Aviation Oil (CAO), lowering its target price on the stock to $1.83 from $2.03 to account for a wider discount of 30% of peer average compared to 25%.

Earnings growth for China Aviation Oil still remains healthy: RHB

SINGAPORE (Aug 2): RHB is reiterating its “buy” recommendation on China Aviation Oil (CAO) with a target price of $1.80. CAO is also the research house’s Singapore Top Picks.

In a Thursday report, analyst Shekhar Jaiswal says that he remains positive on the group’s strong recovery in its profit growth for 2018.

On Wednesday, the group announced that its 2Q18 earnings have increased by 14% y-o-y to US$29.3 million ($40 million), mainly due to higher gross profit and stable profit contributions from associates.

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