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.

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 63.0 7.3 0.3 0.2
2016A 11703.0 30.2 90.3 10.4 0.2 0.5
2017E 13232.0 35.2 103.3 11.9 0.2 0.3
2018E 14918.0 41.4 116.9 13.5 0.2 0.2

Last updated on 26/06/2017

Latest research

Investment summary

China Aviation Oil (Singapore) Corporation (CAO) operates as a physical jet fuel supplier as well as trader, providing a degree of stability to earnings from its core activity. While a healthy dividend income from the fuel supply joint venture at Shanghai’s rapidly expanding Pudong Airport provides the bulk of earnings, the growing trading and supply of oil is supportive of our 14% EPS CAGR over the next two years. Q117 results confirm progress. Our DCF and peer-based fair valuation of US$1.45 (S$2.04) suggests potential for investors.

Last updated on 03/07/2017

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 03/07/2017

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
United Kingdom
+65 6334 8979
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