"The company’s strength lies in its integrated network spanning procurement, logistics, and infrastructure," says Sum in his Oct 28 note.
Jason Sum of DBS Group Research has initiated coverage on China Aviation Oil with a "buy" call and $1.75 price target, on expectations that Asia’s largest physical supplier of jet fuel and the key importer for China’s civil aviation sector is set for multi-year earnings growth, thanks to improving market conditions and underpinned by global air travel demand.
CAO, backed by its parent, China National Aviation Fuel Group (CNAF), China’s exclusive aviation fuel distributor, means the SGX-listed entity has privileged access to the country’s import market and a secure demand base.
