In a Friday report, analyst Shekhar Jaiswal notes that CAO’s sharp recovery in share price – having delivered 29% returns in 2019 and outperforming the Straits Times Index (STI) by 25% – has brought the stock’s forward P/BV, P/E and dividend yield close to their respective three-year average values.
SINGAPORE (Mar 1): RHB Research is remaining “neutral” on China Aviation Oil (CAO) after the group reported FY18 earnings of US$94 million ($127 million), up 10% y-o-y and coming in slightly ahead of RHB and consensus estimates on better-than-expected gross profit margin.
The research house has raised its target price on the stock to $1.50 from $1.32 previously as it rolls over its blended valuation to 2019, which implies 9% upside and 4% FY19F yield.
