Equity Analysis /
Mexico

Grupo Aeroportuario Centro Norte: International segment stands out

  • Oma’s total passengers in November increased 20.2%, in line with our 18.0% expectation

  • Domestic segment continued with solid growth of 22.9%y/y, albeit surprising in the international with a 22.9% y/y rise

  • Though the outlook is favorable given stock price appreciation, we’ll be updating our 2023 PT

Jose Itzamna Espitia Hernandez
Jose Itzamna Espitia Hernandez

Senior Equity Research Analyst, Infrastructure, Materials and Transportation

Follow
Marissa Garza Ostos
Marissa Garza Ostos

Head of Equity Research

Follow
Banorte
8 December 2022
Published byBanorte

Oma noted that during November total passenger traffic at the 13 airports it operates showed an increase of 20.2% y/y, in line with our expectations of 18.0%. While the solid performance on the domestic segment continued with a surge of 19.8% y/y, the increase in international traffic of 22.9% y/y was surprising. The group also noted that during the month American Airlines began operating the Monterrey - New York route.

Neutral implication: Traffic figures continue to support the favorable outlook, with solid, sustained, and profitable growth. It is worth mentioning that after having included it in our top-picks (as of February 4th, 2022), it has delivered a ~23% return vs. zero change in the Mexbol Index. Meanwhile, the current valuation of 12.0x FV/EBITDA is above the national sector average of 11.4x, so we will be updating our estimates for 2023 and PT.