Firstly, Jaiswal highlights how a 17% hike in China’s international aviation passenger traffic could bode well for CAO, as all international flights flying out of China are required to use imported jet fuel.
SINGAPORE (Jan 21): RHB Group Research is reiterating its “buy” call on China Aviation Oil (CAO) with a target price of $1.55, representing a 21% upside for the stock.
In a Tuesday report, RHB analyst Shekhar Jaiswal continues to remain sanguine on the group’s long-term growth prospects, which could well be boosted by the continuing rise in China’s aviation traffic, as well as the group’s diversification into jet fuel supply to non-Chinese markets.
