<div id="readability-page-1"><div><p>China Aviation Oil (Singapore)'s (SGX:G92) stock is up by a considerable 13% over the past three months.   Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes.      In this article, we decided to focus on China Aviation Oil (Singapore)'s  ROE.</p><p> Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital.  In simpler terms, it measures the profitability of a company in relation to shareholder's equity. </p><p>This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.</p><h2> How Is ROE Calculated? </h2><p> The <strong>formula for ROE</strong> is: </p><p> Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity </p><p>So, based on the above formula, the ROE for China Aviation Oil (Singapore) is:</p><p>8.4% = US$86m ÷ US$1.0b (Based on the trailing twelve months to June 2025).</p><p> The 'return' is the yearly profit.  Another way to think of that is that for every SGD1 worth of equity, the company was able to earn SGD0.08 in profit. </p><p><span> View our latest analysis for China Aviation Oil (Singapore) </span></p> <h2> What Has ROE Got To Do With Earnings Growth? </h2><p> We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  Based on how much of its profits the company chooses to reinvest or &#34;retain&#34;, we are then able to evaluate a company's future ability to generate profits.  Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. </p><h2> China Aviation Oil (Singapore)'s Earnings Growth And 8.4% ROE </h2><p> At first glance, China Aviation Oil (Singapore)'s ROE doesn't look very promising.   However, the fact that the company's ROE is higher than the average industry ROE of 5.0%, is definitely interesting.   This certainly adds some context to China Aviation Oil (Singapore)'s moderate 9.7% net income growth seen over the past five years.  Bear in mind, the company does have a moderately low ROE. It is just that the industry ROE is lower.  Hence there might be some other aspects that are causing earnings to grow.  For example, it is possible that the broader industry is going through a high growth phase, or that the company has a low payout ratio.    </p><p> Next, on comparing with the industry net income growth, we found that China Aviation Oil (Singapore)'s growth is quite high when compared to the industry average growth of 0.4% in the same period, which is great to see.   </p><figure><img height="668" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/7687767-past-earnings-growth-1-dark-2/1766182186455?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1642" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/7687767-past-earnings-growth-1-dark-2/1766182186455"/><figcaption>SGX:G92 Past Earnings Growth December 19th 2025</figcaption></figure><p> The basis for attaching value to a company is, to a great extent, tied to its earnings growth.  What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price.   This then helps them determine if the stock is placed for a bright or bleak future.    What is G92 worth today? The  intrinsic value infographic in our free research report  helps visualize whether G92 is currently mispriced by the market.   </p><h2> Is China Aviation Oil (Singapore) Using Its Retained Earnings Effectively?  </h2> <p> China Aviation Oil (Singapore) has a three-year median payout ratio of 30%, which implies that it retains the remaining 70% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.   </p> <p> Additionally, China Aviation Oil (Singapore) has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders.      Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 50% over the next three years.   Despite the higher expected payout ratio, the company's ROE is not expected to change by much.    </p> <h2> Conclusion  </h2> <p> Overall, we are quite pleased with China Aviation Oil (Singapore)'s performance.      In particular, it's great to see that the company has seen significant growth in its earnings backed by a respectable ROE and a high reinvestment rate.       We also studied the latest analyst forecasts and found that the company's earnings growth is expected be similar to its current growth rate.     To know more about the company's future earnings growth forecasts take a look at this <strong>free</strong> report on analyst forecasts for the company to find out more. </p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. 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<p>China Aviation Oil (Singapore) Corporation Ltd's stock has risen 13% in the past three months, driven by its financial prospects. The company's ROE is 8.4%, higher than the industry average of 5.0%, contributing to a 9.7% net income growth over five years. With a 30% payout ratio, the company retains 70% of profits, indicating efficient reinvestment. Analysts expect the payout ratio to rise to 50% without significant changes in ROE. Overall, the company's earnings growth is expected to continue at a similar rate.</p>

Is China Aviation Oil (Singapore) Corporation Ltd's (SGX:G92) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?