Equity Analysis /
Mexico

ASUR: Flash: Once again, the highest growth rates support the company as a favorite

  • Asur, once again stood out with the largest increases in the sector, with a total traffic 28.4% y/y growth in August

  • The traffic of the 9 airports operating in Mexico grew 32.7% y/y, exceeding our 24.0% estimate

  • We reiterate it as our favorite in the sector with the most attractive valuation vs. domestic peers

Jose Itzamna Espitia Hernandez
Jose Itzamna Espitia Hernandez

Senior Equity Research Analyst, Infrastructure, Materials and Transportation

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Marissa Garza Ostos
Marissa Garza Ostos

Head of Equity Research

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Banorte
8 September 2022
Published byBanorte

In August, Asur's total passengers showed a 28.4% y/y growth, as the result of favorable demand performance and simpler comparative base in the face of the rise in COVID-19 infections in August of the previous year. Again, international traffic was the main driver, reflecting a greater advance of 37.4% y/y, followed by domestic traffic 23.9% y/y growth. It should be noted that the total passengers of the 9 airports operating in Mexico rose 32.7% y/y, exceeding our 24.0% estimate.

Positive implication: This month, the dynamism of operations in Colombia stood out, but above all the demand performance in Mexico, which led it to being again the group with the highest increase in passengers. In that sense, we confirm our favorable company outlook that incorporates a positive traffic evolution, being resilient to the current environment, as well as solid growth in results for the year, greater profitability, and continuous cash flow generation. The above, with an attractive valuation (current FV/EBITDA of 10.2x vs 10.8x average national sector), makes us reiterate it as the favorite of the sector.