China Aviation

TA wise, looks bullish!

Short term wise, I think it may likely re-attempt the recent high of 1.47.
Breaking out smoothly plus good volume that may drive the price higher towards 1,57 with extension to 1.65.

China Aviation has delivered a beautiful set of financial results for FY2018 where by Net Profit has increased from US84m to US93.8m. EPS of US0.1091 , S$0.1461.

At current price of 1.44, PE is about 9.85x.
Net cash position with zero debts.

Cash on hands of US357m

Total no. of outstanding shares = 860m.

Net cash per share is about S$0.55.

Healthy FCF of 150m versus the dividend pay out of 29m. Solid FCF!

I think a reasonable PE of 11x which is $1.61 might be fairly achievable.

Dividend of 4.5 cents. XD 3rd May, Pay date 15th May.
Yield of 3.1% looks fairly decent.


Not a call to buy or sell.

Pls dyodd.




China Aviation Oil (Singapore) Corporation Ltd (“CAO” or “the Group”), incorporated in Singapore on 26 May 1993 and listed on the mainboard of the Singapore Exchange Securities Trading Limited since 2001, is the largest physical jet fuel trader in the Asia Pacific region and the key supplier of imported jet fuel to the civil aviation industry of the People’s Republic of China (“PRC”). Headquartered in Singapore with global operations spanning key aviation hubs in Hong Kong SAR, Los Angeles, London with an entrenched presence in China, CAO and its wholly owned subsidiaries (the “Group”), China Aviation Oil (Hong Kong) Company Limited (“CAOHK”), North American Fuel Corporation (“NAFCO”) and China Aviation Fuel (Europe) Limited (“CAFEU”) supply jet fuel to airline companies at airports outside the PRC, including Asia Pacific, North America, Europe and the Middle East. The Group also engages in international trading of jet fuel and other oil products.