China Aviation Oil (Singapore)

SP: G92

SGD1091.4m market cap

SGD1.26 last close

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.

Investment summary

Having delivered a record performance in FY18, China Aviation Oil (Singapore) Corporation (CAO) faces a year of more subdued progress. Confronted by more difficult markets in 2019, the management team appears to have adopted a more risk averse stance in oil trading, curtailing some of the optimisation strategies. Trade disputes are also affecting supply volumes and margins to the US. The core trading activity challenges are compounded by policy adjustments affecting growth at Shanghai Pudong airport, the main group associate. The result is a slower growth trajectory, as is reflected in H119 results. Nevertheless, CAO remains a proxy for the rapid growth of the Chinese air transport market.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 16268.0 23.9 88.7 10.0 9.1 34.8
2018A 20612.0 30.9 98.2 11.1 8.2 3.6
2019E 20265.0 40.1 98.4 11.1 8.2 6.7
2020E 21385.0 47.1 103.9 11.7 7.8 6.8
Last updated on 16/09/2019
Share price graph
Balance sheet
Forecast net cash (US$m) 433.8
Forecast gearing ratio (%) N/A
Price performance
Actual 7.7 (3.1) (18.7)
Relative* 4.7 (2.5) (19.8)
52-week high/low S$1.6/S$1.0
*% relative to local index
Key management
Meng Fanqiu CEO
Wang Chunyan CFO
Elaine Ange Head of IR
Jean Teo COO
Lilian Low Investor Relations Manager