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$1403.2m
Last closeS$1.62
High / Low (52 weeks)S$1.8 / S$1.5
Stock market listingSP
Forecast net cash (US$m)256.8
Forecast gearing ratio (%)N/A
TeamIndustrials
SectorIndustrial Support Services

Price performance

%1m3m12m
Actual0.0(4.7)5.2
Relative *(3)(9.9)(10.4)

* % Relative to local index

Other companies in sector Show

Company news

China Aviation Oil COO quits to pursue other opportunities

Thu, 30 Nov 2017 00:11:15 GMT

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

Thu, 03 Nov 2016 12:03:05 GMT

Company Briefs: China Aviation Oil (Singapore)

Thu, 02 Nov 2017 21:00:00 GMT

Investors Are Undervaluing China Aviation Oil (Singapore) Corporation Ltd (SGX ...

Tue, 12 Dec 2017 02:03:45 GMT

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

Fri, 22 Apr 2016 01:57:49 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 16.8 11.2
2016A 11703.0 30.2 89.9 10.4 11.6 27.5
2017E 15834.0 27.1 89.1 10.2 11.8 10.7
2018E 17792.0 41.4 97.5 11.2 10.8 14.1

Last updated on 08/12/2017

Investment summary

CAO operates as a physical jet fuel supplier as well as trader, while a healthy dividend income from the fuel supply JV at Shanghai’s rapidly expanding Pudong Airport provides the bulk of earnings. Q3 gross margin of the core trading operation was affected by backwardation in product markets and supply disruptions. More positively, there was a stronger contribution from SPIA and other associates. 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.

Last updated on 13/12/2017

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 13/12/2017

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