Brokers' take

China Aviation Oil (S) Corp | Accumulate Target price: S$0.92 March 28 close: S$0.79 Phillip Securities Research, March 28

Global aviation transportation remains solid, driven by robust traffic growth. The global net increment of airplanes deliveries amounts to around 20,000 from 2015 to 2034 (average 1,000 per year) and the compounded annual growth rate of air traffic is forecast to average 4.75 per cent during the same period.

Buoyant domestic civil aviation traffic is immune to sluggish economy in China. Since 2011, China's GDP growth has been dropping and is expected to remain at single digit going forward. However, the air traffic growth maintained at 10 per cent per annum over…