Exceeds pre-pandemic traffic and with record EBITDA
In 2Q22, Concession’s segment continued to be the main driver of Pinfra's results, managing to compensate for the strong weakness in Construction and Plants
Vehicular traffic exceeded pre-pandemic figures and EBITDA for the quarter was a record. While we reiterate our Buy recommendation, we do not see a short-term catalyst to drive the stock price
Concessions’ growth partially offset by Construction and Plants weaknesses. The company showed an increase in revenue of 16.7% to MXN 3.5 billion, derived from a traffic recovery, the integration of the Aguascalientes Bypass and the Nabor-Carrillo section (Piramides-Texcoco), as well as a still easy comparative base. Thus, traffic on concessioned highways had a rise of 14% y/y, (+3% vs. 2Q19 on a comparable basis), driving the Concessions adavance of 23.8% y/y, also supported by the solid IPM performance. In turn, it registered annual declines, 4.3% in Construction, due to a lower work volume executed, and 58.7% in Plants, by lower work volume released to the CDMX government. On the other hand, EBITDA rose 13.5% y/y to MXN 2.4 billion (new record), in line with expectations, and therefore, the margin was reduced by 1.9pp to 66.8%. By segment, Concessions grew 22.5%, while Plants fell 73.7% and Construction presented a negative amount of MXN 11 million. Finally, the increase in majority net income of 34.6% y/y benefited from higher interest income and a less adverse exchange rate effect. We highlight the healthy financial balance with a ND/EBITDA of -1.1x. Solid fundamentals, but lack of catalysts in the short-term. Quarter's figures underpin continued growth and higher expected cash flow generation; however, we believe there are no catalysts in the near term that could give a further stock price boost, except for the current valuation of 6.3x FV/EBITDA vs. 8.0x of the sector.
