China Aviation Oil (Singapore) (G92)

Business description

China Aviation Oil (Singapore) Corporation (CAO) is the largest physical jet fuel supplier and trader in Asia. It holds the sole import licence for bonded jet fuel into China, and has nascent businesses in the US and Europe. Of its five associates, the most important is SPIA, which supplies all jet fuel to Shanghai Pudong Airport.

Stock data

Market cap.S$1359.9m
Last closeS$1.57
High / Low (52 weeks)S$1.8 / S$1.3
Stock market listingSP
Forecast net cash (US$m)256.8
Forecast gearing ratio (%)N/A
TeamIndustrials
SectorIndustrial Support Services

Price performance

%1m3m12m
Actual(8.5)2.317.6
Relative *(9)0.4(1.7)

* % Relative to local index

Other companies in sector Show

Company news

China Aviation Oil (Singapore) Corp Ltd's Latest Earnings: What's Next After A ...

Thu, 03 Nov 2016 12:03:05 GMT

China Aviation Oil Singapore Corp Ltd's Earnings: Revenue Tumbles, But Strong ...

Fri, 22 Apr 2016 01:52:30 GMT

China Aviation Oil's Q2 profit up 4%

Thu, 27 Jul 2017 03:33:45 GMT

Focusing The Lens on China Aviation Oil (Singapore) Corporation Ltd (SGX:G92 ...

Sun, 19 Nov 2017 12:45:00 GMT

Costly lessons from the CAO scandal

Wed, 22 Dec 2004 00:00:00 GMT

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2015A 8987.0 25.9 62.4 7.2 16.0 10.7
2016A 11703.0 30.2 89.9 10.4 11.1 26.3
2017E 15834.0 27.1 89.1 10.2 11.3 10.2
2018E 17792.0 41.4 97.5 11.2 10.3 13.5

Last updated on 13/11/2017

Investment summary

Q3 results reflected the combined impact on gross margin of the core trading operation due to a return to a backwardation situation in product markets, as well as supply disruptions. More positively, SPIA and the other associates made a stronger contribution. With adverse trading conditions expected to persist for a period of time, management’s strategy to reduce volatility is being tested. The key growth drivers of increasing air traffic and an expanding geographic footprint continue to increase trading volumes and augur well for the future. Maintenance of profitability at a lower margin level while backwardation conditions persist should be offset by stronger growth from SPIA next year, but we now assume a more subdued expansion of the core business. The balance sheet remains supportive of further strategic M&A to facilitate growth. Our fair value falls to S$1.88 from S$2.11.

Last updated on 12/11/2017

Industry outlook

As the sole licensed importer and supplier of jet fuel to China’s civil aviation industry, CAO is a direct play on the rapidly rising demand for air travel in China, with growth augmented by both international and product expansion. Air transport is widely acknowledged to be an industry in a period of structural growth. International travel from China is increasing four times faster than the global average, so CAO is exposed to a sweet spot in the market.

Last updated on 02/11/2017

Key management

Meng Fanqiu, CEO
Wang Chunyan, CFO
Jean Teo, COO
Elaine Ange, Head of IR
Lilian Low, Investor Relations Manager

Company address

8 Temasek Boulevard
#31-02 Suntec Tower Three
Singapore
+65 6334 8979
View website