- China Aviation Oil (SGX:G92)'s revenue for 1H24 increased by 20% y-o-y to US$7.5bn, slightly below expectations and accounting for 44% of our FY24e forecast. The revenue growth is primarily attributed to a rise in oil prices and an increase in supply and trading volume (+7.5% y-o-y).
- - Read this at SGinvestors.io -
- Earnings will be supported by a recovery in international air traffic in China, which we expect to reach ~90% of pre-pandemic levels (currently around 25% below pre-COVID levels). We maintain our BUY recommendation on China Aviation Oil.
The Positives
Increasing margin & trading volume.
- - Read this at SGinvestors.io -
- Furthermore, mispricing due to geopolitical tensions in the Middle East, particularly the Red Sea conflict, has redirected demand to Asia for jet fuel purchases.
- China Aviation Oil also saw an increasing contribution from end-to-end sales (from refinery to airline delivery), which now accounts for ~10% of the total volume. We expect trading volume to remain robust in 2H24, as 3Q is seasonally stronger for airlines to onload jet fuel for winter.
Improving contribution from associates.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Paul Chew Phillip Securities Research | https://www.stocksbnb.com/ 2024-08-22
Previous report by Phillip:
2024-03-04 China Aviation Oil - Net Profit & Dividend Beat Expectations.
Price targets by 2 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
