Revenue for the six months ended June 30 increased by 13.6% y-o-y to US$8.56 billion due to higher business volumes. At the same time, gross profit grew by 25.7% y-o-y to US$30.4 million mainly due to higher profits from CAO’s jet fuel supply business. The business itself saw higher supply volumes and higher optimisation gain from trading activities, said the company in its results announcement released on Aug 14.
PhillipCapital analyst Liu Miaomiao has upgraded her call on China Aviation Oil (CAO) to “buy” as the company’s 1HFY2025 patmi was up by 17.99% y-o-y to US$50.0 million ($64.2 million).
“We upgrade CAO from ‘accumulate’ to ‘buy’ with a higher discounted cashflow (DCF) target price of $1.50 underpinned from surging jet fuel demand and rising contributions from associates,” Liu writes in an Aug 18 report. Her previous target price was 90 cents.
