From its results announcement, Liu likes that CAO’s 33%-owned Shanghai Pudong International Airport (SPIA) continued to shine. During the year, CAO’s associates’ profits surged by 51.4% y-o-y to US$45.9 million, attributed to a recovery in international visitor arrivals. However, the group registered a 1.69% decline h-o-h in 2HFY2024 due to higher operating expenses.
PhillipCapital analyst Liu Miaomiao has downgraded China Aviation Oil (CAO) to “neutral” from “buy” after CAO declared a final dividend of 3.72 cents representing a payout ratio of 30%. There was also no special dividend.
Considering CAO’s earnings for the FY2024 ended Dec 31, 2024, increased by 33.13% y-o-y to US$78.4 million ($104.4 million), this was a disappointment to the analyst, who also lowered her target price estimate to 85 cents from $1.05 previously. CAO’s FY2024 earnings stood at 100% of her full-year estimates.
