- China Aviation Oil's share price has performed well, returning 68% in capital gains year-to-date, and now exceeds our previous fair value estimate.
- - Read this at SGinvestors.io -
- We also lower our 12-month target for the US$-S$ to 1.25 to reflect our expectations of further US$ weakness.
- Our forecasts are conservative, in our view.
Long-term earnings growth trajectory intact catalysts include commitment to improving shareholder returns and ongoing capital market reforms in Singapore.
- - Read this at SGinvestors.io -
- We also reiterate that a key catalyst could come from greater clarity from management on how it intends to improve shareholder returns, such as commitment to a higher dividend payout ratio or accretive acquisitions, backed by a substantial net cash position of US$515m as at 30 Jun 2025.
Parent and controlling shareholder set for restructuring, resulting in some uncertainty.
- Read more at SGinvestors.io.
