Equity Analysis /
Mexico

ASUR: Quarterly Report 2Q22: Reaffirms itself as the most attractive in the sector

  • • Asur confirmed greater sector advances, in line with our estimates, driven by strong demand and higher tariffs

  • • Strong demand and a strategy focused on efficiencies will boost the results even in the face of a complex environment

  • • Our favorite company in the sector with an attractive valuation –FV/EBITDA of 9.2x vs. the 11.0x national avg.–

Jose Itzamna Espitia Hernandez
Jose Itzamna Espitia Hernandez

Senior Equity Research Analyst, Infrastructure, Materials and Transportation

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Banorte
4 August 2022
Published byBanorte

Reaffirms itself as the most attractive in the sector

  • Asur confirmed the greatest sector advances, in line with our estimates, which we believe should be well received by the market and supports it in our top-picks

  • Even with current challenges, strong demand and strategy focused on efficiencies will continue to benefit results. The group stands out with the most attractive valuation in the sector (9.2x vs 11.0x average)

Strong demand, higher tariffs and costs control continue. In 2Q22, Asur’s showed significant annual increases (although more moderate vs. previous quarters attributable to a more normalized base), due to positive traffic dynamism and higher maximum tariffs. In this way, total passengers grew 39.3% y/y, while operating revenues (sum of aeronautical and non-aeronautical) increased 48.3% y/y to MXN 5.7 billion. Operating leverage and efficiencies (mainly in Mexico and Colombia), as well as a recovery expenses in Puerto Rico (MXN 175 million), leading to an EBITDA rise of 61.4% y/y to MXN 4.0 billion, reflecting a margin expansion (excluding construction services) of 5.8pp to 70.5%, in line with our estimate (70.3%). At the net level, the company recorded majority net income increase of 116.1%, due to fair value loan repayments originated by the Colombia business acquisition (by MXN 224 million) and a favorable exchange rate effect.

Our favorite in the sector. Although we must track the demand evolution in the face of the complex environment, the group’s advance in figures, which stands out in the sector, confirms the favorable growth perspectives, highlighting the healthy financial situation (ND/EBITDA of 0.4x). Incorporating the results, FV/EBITDA multiple was lowered from 10.2x to 9.2x, being a very attractive valuation vs. 11.0x national sector average, which makes us reiterate our Buy recommendation.