China Aviation Oil is one of the few SGX-listed companies which offers both growth and value.
China is the fastest aviation growth market in the world with Boeing predicting Chinese outbound passenger traffic to grow 3x from 2017-37. But how can one invest in this trend? Buying airline shares can be risky because of fierce competition while Chinese internet travel companies such as Ctrip are trading at lofty valuations. With a trailing 10x P/E, China Aviation Oil offers a safer and cheaper way for me to benefit from China’s high growth aviation industry.
China Aviation Oil has the sole import license for bonded jet fuel for international travel from Chinese airports and is also the largest physical jet fuel supplier and trader in Asia.
Steady cash growth machine
USDm Revenue Recurring net profit Net profit Cash flow operations Free cash flow Net cash ROE 2007 2,957 34 168 125