CAO’s key business is its 33% stake in Shanghai Pudong International Airport Aviation Fuel Supply Company, the monopoly jet fuel supplier in Shanghai’s Pudong International Airport (SPIA).
Peggy Mak of PhillipCapital has initiated coverage of China Aviation Oil (Singapore) Corporation with a “buy” call and $1.01 target price on expectations that this company will see its earnings double over the next two years.
CAO is a counter with direct exposure to the aviation market of China. Besides its key base in Shanghai, CAO is involved in the trading of jet fuel, other oil products as well as carbon credit. It is 51.3% owned by state-owned China National Aviation Fuel Group, which holds the mandate to supply all jet fuel requirements in China.
