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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$1022.1m
Last closeS$1.18
High / Low (52 weeks)S$1.7 / S$1.1
Stock market listingSP
Forecast net cash (US$m)216.9
Forecast gearing ratio (%)N/A
TeamIndustrials
SectorIndustrial Support Services

Price performance

%1m3m12m
Actual(5.6)(22.9)(28.5)
Relative *(6.6)(22.3)(20.1)

* % 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 Earnings: Revenue Tumbles, But Strong ...

Fri, 22 Apr 2016 01:57:49 GMT

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

Thu, 03 Nov 2016 12:03:05 GMT

Costly lessons from the CAO scandal

Wed, 22 Dec 2004 00:00:00 GMT

China Aviation Oil kept at 'buy' by UOB and CIMB on higher earnings from ...

Thu, 01 Mar 2018 05:26:15 GMT

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2016A 11703.0 30.2 89.9 10.4 8.2 19.5
2017A 16268.0 24.1 88.0 9.9 8.7 32.8
2018E 18406.0 26.8 96.0 10.8 7.9 10.8
2019E 20750.0 31.2 105.0 11.8 7.3 9.4

Last updated on 27/11/2018

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. Q318 topline performance reflected the higher oil price, increased trading volumes and a healthy contribution from associates. The growing associates profits and strong air transport growth in China support FY18 and future organic growth prospects. The healthy balance sheet positions the group to pursue development of its global supply chain infrastructure, as reflected by the purchase of Navires Aviation in Europe.

Last updated on 29/11/2018

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 29/11/2018

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
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