China's easing, OPEC+'s Oil Production Cut, Recovery PlaySGX:G92
Comments on Annual Quantitative Analysis
End 2023 Price Target using same PE as 2022 = $1.24
End 2023 Price Target using same Sales Multiple as 2022 = $0.73
Forecasted Revenue to decrease but Net Income to increase in 2023. The increase in Net Income could be attributed to the increase in Other Income. Lower Revenue is affected by the decrease of oil prices and volume. Other Income is contributed by Interest Income and government rebates.
Quantitative Analysis (Sector Comparisons)
Stock P/E on a premium to sector and is positive.
Stock Earnings Growth is sequentially positive and above sector average.
Comments on Business
Return to pre-pandemic travel levels and in-office work a positive factor on growth.
World’s largest online marketplace for pet care and world’s leading pet services app.
Stronger bookings particularly for overnight boarding and house sitting services, during months of June, July, and August, and November and December, which in a typical year coincides with high travel demand related to summer and holiday travel, respectively.
Total air traffic in 2022 rose 64.4% year-on-year. Number of global airlines has also increased.
International Air Transport Association (“IATA”) predicts total airline revenue to recover to around 93% of the pre-COVID level in 2023.
Air travel demand in Asia Pacific on expectations that China’s air travel-related restrictions will be progressively alleviated. Asia Pacific is expected to record a significant improvement but will still post a net loss of approximately US$6.6 billion.
KPI's Driving Revenue and Earnings
OPEC+’s decision to extend oil production cuts could offset losses.
Decrease in total expenses due to decrease of expected credit loss (“ECL”) and bank charges.
Trade Structure
Entry - $0.885
Target - $0.980
Stop - $0.835
G92 trade ideas
I will skip this counter for nowSomeone wanted to know about this counter, CAO.
They are dependent on the recovery of the global aviation industry and at present, the entire industry is still very weak. There are analysts saying that traveling may not return to the pre-Covid 19 days. I can't foretell but looking at the chart, I will not be keen.
1. it is still on a downtrend since 2017......
2. there is a support at 0.49 so if the price action over the next few months cannot break out of the bearish trend line and reverse instead, then it is likely we see it revisit this level again.
3. current litigation unresolved
4. Profitability and revenue not strong
Therefore, I will not be keen on this stock for now.
China Aviation (In Search For Yield)View On China Aviation (26 AUG 2020)
We are in the inflationary environment and people are in search for yield.
We are seeing some BULL (pumping action) and it can continue.
$1 will be an easy target. let's see.
DYODD, all the best and read the disclaimer too.
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