China Aviation Oil - Lim & Tan Securities 2024-02-22: Time To Fly!

• We initiate a BUY rating on China Aviation Oil (SGX:G92) with a target price of S$1.20, pegged to 11.5x FY24F P/E (10% discount to 5-year average P/E of 12.7x), representing a potential upside of 29.7%.
• - Read this at SGinvestors.io -
• Current valuations of 8.9x FY24F P/E and 0.7x P/B are attractive with strong earnings growth potential ahead.

Recovery in domestic flights, international flights to follow suit.

• While domestic flights within China have recovered to pre-COVID levels since mid- 2023, outbound flights are slower to recover at only ~65% of pre-COVID levels in Dec’23. The Civil Aviation Administration of China (CAAC) has estimated China’s international air travel market to hit 80% of pre-COVID levels by the end of 2024.
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China Aviation Oil’s key asset – SPIA, to benefit from return of international travellers.

• Read more at SGinvestors.io.

Above is an excerpt from a report by Lim & Tan Securities Research.
Clients of Lim & Tan Securities may be the first to access the full PDF report @ https://www.limtan.com.sg/.

Read also LIM's most recent report:
2024-08-21 China Aviation Oil - Solid 2023, Even Better 2024.

Previous report by LIM:
2024-03-22 China Aviation Oil - Air Travel Rebound.

Price targets by other brokers at China Aviation Oil Target Prices.

Listing of research reports at China Aviation Oil Analyst Reports.

Relevant links:
China Aviation Oil Share Price History,
China Aviation Oil Announcements,
China Aviation Oil Dividend Payout Dates & Corporate Actions,
China Aviation Oil News