Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

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Energy Was the Strongest of the Sectors in September

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

China Aviation Oil Singapore Corp / Equity Bottom-Up

China Aviation Oil Singapore Corp (CAO SP)

<ul><li>Low price volatility versus the Singaporean market, low debt levels, and good price momentum relative to its sector </li><li>As sole import license holder, CAO supplies 30-40% of China’s jet fuel. As imported jet fuel is only allowed for outbound flights, CAO can be viewed as a proxy for China’s international air travel; up by 32% in 2016 </li><li>CAO is currently invested in five entities, including storage, pipelines and refueling facilities. With net cash of US$226m, it is well positioned to create further value through investments </li><li>Attractive at 17CE* 9.6% ROE/PB versus Asian Energy at 8.2% </li><li>Risks: Increase in oil prices, geopolitical uncertainties that could have an impact on global air traffic</li></ul>* Consensus Estimates

Low price volatility versus the Singaporean market, low debt levels, and good price momentum relative to its sector As sole import license holder, CAO supplies 30-40% of China’s jet fuel. As imported jet fuel is only allowed for outbound flights, CAO can be viewed as a proxy for China’s international air travel; up by 32% in 2016 CAO is currently invested in five entities, including storage, pipelines and refueling facilities. With net cash of US$226m, it is well positioned to create further value through investments Attractive at 17CE* 9.6% ROE/PB versus Asian Energy at 8.2% Risks: Increase in oil prices, geopolitical uncertainties that could have an impact on global air traffic* Consensus Estimates

CAO: Climbing China Air Travel Fuels Profitability