In a Wednesday report, analyst Shekhar Jaiswal says he foresees the strong growth in China’s international passenger traffic numbers as seen in 2018 sustaining into 2019 as well, supported by the rise in jet fuel imports into China.
SINGAPORE (Mar 27): RHB Research is upgrading its call on China Aviation Oil (CAO) to “buy” from “hold”, while raising its target price on the stock by 10 cents to $1.60 to suggest 26% upside plus 3.6% yield.
This comes as the research house expects CAO to benefit from signs of a strong recovery in international passenger growth in China, in addition to the anticipated capacity constraints of its 33%-owned associate, Shanghai Pudong International Airport (SPIA).
