China Aviation Oil - Phillip Securities 2024-03-04: Net Profit & Dividend Beat Expectations

• China Aviation Oil (SGX:G92)'s FY23 results beat our estimates by 22%, due to stronger-than-expected contributions from 33%-owned SPIA.
• Net profit rebounded 75.5% due to
  1. stronger demand for jet fuel with borders reopened from early 2023;
  2. - Read this at SGinvestors.io -
  3. SPIA’s net profit jumping 61% y-o-y.
• China Aviation Oil's net cash at year-end was US$373mil (S$0.623 per share).
• Full-year dividend was raised to 5.05 cents (FY22: 1.6 cents), a yield of 5.4%. See China Aviation Oil's dividend dates.

The Positives

Gross profit per metric ton jumped to US$2.53 in FY23 (FY22 US$1.75/mt).

• - Read this at SGinvestors.io -

Contributions from 33%-owned associate SPIA grew 61% to US$31mil.

• Contributions from China Aviation Oil's 33%-owned associate Shanghai Pudong International Airport Aviation Fuel Supply Co Ltd (SPIA) grew 61% to US$31mil.
• SPIA also paid US$23mil to China Aviation Oil in FY23, 9.5% higher y-o-y. We expect a higher payout in FY24e after the strong FY23.

The Negative

Impairment of US$12mil

• Read more at SGinvestors.io.

Peggy Mak Phillip Securities Research | https://www.stocksbnb.com/ 2024-03-04 SGinvestors.io

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