- 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.
- - Read this at SGinvestors.io -
China Aviation Oil’s key asset – SPIA, to benefit from return of international travellers.
- Read more at SGinvestors.io.
Chan En Jie Lim & Tan Securities Research | Nicholas Yon Lim & Tan Securities | https://www.limtan.com.sg/ 2024-02-22
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 Dividends & Corporate Actions,
China Aviation Oil News Articles
