"This should support jet fuel volume growth and profits at Shanghai Pudong International Airport," says Lim, referring to CAO's main operating base.
Ada Lim of OCBC Investment Research has kept her "buy" call and raised her fair value for China Aviation Oil to $1.40 from $1.10, on expectations that the Shanghai-based jet fuel supplier remains firmly buckled on China's growing aviation traffic volume despite lacklustre consumer sentiment.
Lim, in her July 25 note, points out that there were 38.14 million passengers passing through international routes in the first six months of the year, up 28.5% y-o-y.
