OVERVIEW:
Incorporated in Singapore on 1993, the principal activities of the group are jet fuel supply and trading. It is the largest physical jet fuel trader in the Asia Pacific region and the sole supplier of imported jet fuel to the civil aviation industry of People's Republic of China, including Beijing Capital International Airport, Shanghai Pudong International Airport and Guangzhou Baiyun International Airport. Besides these, it also markets and supplies aviation fuel to international airports out of China, such as Amsterdam, Frankfurt, Los Angeles, Dubai, Istanbul, etc.
The parent companies (51% shareholders), China National Aviation Fuel Group Corporation is the largest aviation transportation logistics provider in China. BP investments Asia (subsidiary of oil major, BP) holds 20% shares into the group.
HIGHLIGHTS:
[1] Latest quarter saw revenue and profit up 65% and 57% year on year., due to higher supply and trading volume of middle distillates and oil products. Full year profit jump 45%. Contribution from associates also jump > 50%.
[2] Its earning contribution from overseas market almost double over past six years.
[3] It has negligible borrowing. Gearing is low ~ 12%.
INVESTMENT THEMES:
[1] FY2017 earning per shares - USD0.103 || Dividend per shares ~ 0.045
Last trading price, 1.48 translates to undemanding valuation with PE ~ 10, dividend yield 3%.
[2] The group shall be benefited from the robust growth in China's aviation industry, especially in line with China's "One Belt, One Road" initiative. Based on Civil Aviation Administration of China's statistics, China aviation industry looks set to sustain 10% annual growth rate to 2020.
PRICE TREND:
The counter has been range bouncing between 1.32 to 1.55 for past 10 months. Recent sliding in price present chances for accumulation, considering cum-dividend (50% increase than last year) is around the corner.
No comments:
Post a Comment