0622 GMT - China Aviation Oil (Singapore) Corp.'s earnings are likely to be stronger in 2H, based on management's guidance, CGS International analysts say in a note. Drivers include stronger income at the jet-fuel trader on the back of jet-fuel trading volume recovery and continued growth in the sustainable aviation fuel market, the analysts say. There are also potential incremental trading flows as CAO integrates into Sinopec's value chain following the Sinopec-China National Aviation Fuel Group merger. The brokerage maintains the stock's add rating, but lowers the target price to 2.45 Singapore dollars from S$2.68 to reflect a lowered P/E multiple assumption for CAO associate Shanghai International Airport. Shares are unchanged at S$1.62.
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