Core Insights - The article promotes Ian's Insider Corner, which offers access to investment reports, trade alerts, and a chat room for members [1] Group 1 - Ian Bezek has a decade of experience as a hedge fund analyst and has conducted extensive research in Latin American markets, focusing on countries like Mexico, Colombia, and Chile [2] - The investment strategy emphasizes high-quality compounders and growth stocks at reasonable prices in both the US and developed markets [2]

Core Insights - ZTO Express (Cayman) Inc. is currently positioned as a more attractive investment compared to Grupo Aeroportuario del Sureste based on various financial metrics and earnings outlook [1][7]. Valuation Metrics - ZTO has a forward P/E ratio of 12.48, while ASR has a forward P/E of 14.39, indicating ZTO may be undervalued [5]. - The PEG ratio for ZTO is 7.30, compared to ASR's PEG ratio of 8.32, suggesting ZTO offers better value relative to its expected earnings growth [5]. - ZTO's P/B ratio stands at 1.26, significantly lower than ASR's P/B of 2.84, further supporting ZTO's valuation advantage [6]. Earnings Outlook - ZTO is experiencing an improving earnings outlook, which is a key factor in its favorable Zacks Rank of 2 (Buy), while ASR holds a Zacks Rank of 5 (Strong Sell) [3][7].

Core Insights - Passenger traffic for Grupo Aeroportuario del Sureste (ASUR) in September 2025 reached 4.8 million, a decrease of 1.4% compared to September 2024 [1][4] - Year-over-year passenger traffic increased by 3.2% in Colombia and 1.6% in Puerto Rico, while it decreased by 4.5% in Mexico [2][4] Passenger Traffic Summary - **Mexico**: - Total passenger traffic decreased from 2,728,720 in September 2024 to 2,605,717 in September 2025, a decline of 4.5% [4] - Domestic traffic decreased by 3.1% and international traffic decreased by 6.5% [4][5] - **Puerto Rico**: - Total passenger traffic increased from 773,296 in September 2024 to 785,846 in September 2025, an increase of 1.6% [4] - International traffic saw a significant increase of 16.1%, while domestic traffic decreased by 0.5% [2][4] - **Colombia**: - Total passenger traffic increased from 1,352,202 in September 2024 to 1,395,261 in September 2025, a rise of 3.2% [4] - International traffic increased by 10.0%, while domestic traffic rose by 1.4% [2][4] Year-to-Date Performance - **Mexico**: Year-to-date passenger traffic decreased by 2.7% from 31,314,960 in 2024 to 30,481,397 in 2025 [4] - **Puerto Rico**: Year-to-date traffic increased by 4.9% from 10,047,837 in 2024 to 10,543,332 in 2025 [4] - **Colombia**: Year-to-date traffic increased by 3.4% from 12,218,181 in 2024 to 12,635,396 in 2025 [4] Company Overview - Grupo Aeroportuario del Sureste (ASUR) operates 16 airports across the Americas, including major airports in Mexico and Colombia, and is a key player in the airport management sector [8]

Core Insights - The report is part of Ian's Insider Corner, which provides subscribers with access to investment ideas, updates, and macro analysis [1][2] - Ian Bezek, the lead analyst, has extensive experience in Latin American markets and focuses on high-quality growth stocks [3] Group 1 - Ian's Insider Corner includes features such as the Weekend Digest, trade alerts, and direct access to the lead analyst [2] - The group emphasizes research on new stocks and updates on current holdings [2] - Ian Bezek has a background as a hedge fund analyst and specializes in identifying reasonable-priced growth stocks [3]

Passenger Traffic Overview - Passenger traffic in July 2025 reached 6.5 million, a 1.5% increase compared to July 2024 [1] - Year-on-year traffic increased by 3.5% in Colombia and 2.0% in Mexico, while Puerto Rico saw a decrease of 1.9% [2][4] Traffic Breakdown by Region Mexico - Total passenger traffic in Mexico for July 2025 was 3,617,941, up 2.0% from July 2024 [4] - Domestic traffic increased slightly by 0.4% to 1,796,925, while international traffic rose by 3.7% to 1,821,016 [5] - Year-to-date figures show a decline in total traffic by 2.6% to 24,579,607 [4] Puerto Rico - San Juan Airport reported a total of 1,381,674 passengers in July 2025, a decrease of 1.9% from the previous year [7] - Domestic traffic fell by 3.5% to 1,176,500, while international traffic increased by 8.0% to 205,174 [7] Colombia - Colombia's total passenger traffic for July 2025 was 1,511,049, reflecting a 3.5% increase [8] - Domestic traffic rose by 1.2% to 1,131,678, and international traffic surged by 10.7% to 379,371 [8] Year-to-Date Performance - Year-to-date total traffic across all regions showed a slight increase of 0.3% to 42,847,308 [4] - Domestic traffic year-to-date decreased by 0.5% to 26,224,235, while international traffic saw a decline of 1.6% to 16,623,073 [4] Company Profile - Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) operates 16 airports in the Americas, including major airports in Mexico and Colombia [9] - ASUR is listed on both the Mexican Bolsa and the NYSE, with a focus on maintaining and developing airport infrastructure [9]

Financial Data and Key Metrics Changes - Total revenues increased by 5% year on year to 7,400,000,000 pesos, reflecting growth across operations, particularly in Puerto Rico and Colombia [8][9] - Consolidated EBITDA rose slightly by 2% year on year, reaching 5,000,000 pesos, with a notable decline in Mexico's EBITDA by 1.6% [12] - The adjusted EBITDA margin, excluding construction revenue, stood at nearly 68%, down from 69% in the same quarter last year [12] Business Line Data and Key Metrics Changes - Mexico, accounting for 72% of total revenues, posted a low single-digit increase of 0.7% [9] - Puerto Rico contributed 17.7% of total revenues with high teens growth, while Colombia accounted for 12% of total revenues with 15.4% growth [9] - Commercial revenue per passenger reached nearly 140 pesos, representing mid-single-digit year-on-year growth, with Colombia leading at a 22% increase [10] Market Data and Key Metrics Changes - Passenger traffic remained largely flat year on year at 17,700,000, with Puerto Rico showing 3% growth, while Mexico reported a decline of nearly 2% [5][6] - International travel in Mexico saw declines from all regions, with Europe down 4.7% and the US down 5.3% [6] - A significant portion of the decline in international traffic (38%) was attributed to the new airport in Tulum [6] Company Strategy and Development Direction - The company continues to invest in infrastructure and expand commercial offerings, having opened 47 new commercial spaces over the last twelve months [9][10] - The management emphasized the importance of maintaining a strong cash position and planned to pay dividends while evaluating future capital allocation [14][72] - The company is attentive to evolving global macroeconomic conditions and believes its financial position will help mitigate potential risks [16] Management's Comments on Operating Environment and Future Outlook - Management expects traffic in Mexico to gradually stabilize over the next year as operational issues are resolved [7] - The company does not anticipate a material impact from potential US Department of Transportation restrictions on Mexican carriers [7] - Management expressed cautious optimism regarding the normalization of domestic traffic and the potential for increased operations in Mexico City [40][41] Other Important Information - The company reported a foreign exchange loss of 1,200,000,000 pesos due to the depreciation of the Mexican peso against the US dollar [13] - Capital expenditures in the quarter totaled 1,400,000,000 pesos, primarily directed towards modernization and expansion projects [14][15] - The board of directors now comprises 57% independent members, with female representation increased to 36% [16] Q&A Session Summary Question: What drove the sequential decline in non-air revenues? - Management indicated that exchange rates and a slight difference in passenger mix contributed to the decline [22] Question: What impact would lifting capacity restrictions in Mexico City have? - Management noted that an increase in operations could benefit overall passenger traffic, but expressed doubts about significant changes occurring soon [24] Question: Is charter traffic still the primary traffic type at Tulum? - Management confirmed that most traffic at Tulum is now commercial flights, primarily from the US [31] Question: What is the outlook for traffic growth in the second half of the year? - Management expects some normalization in traffic, with potential single-digit growth anticipated [36] Question: What is the expected impact of foreign exchange on commercial revenues? - Management explained that the exchange rate and duty-free sales affected commercial revenues, leading to a soft performance [41] Question: What is the rationale behind the new debt? - Management stated that the new debt was necessary to maintain cash reserves for future expenses and dividends [72] Question: What are the dynamics of international traffic in Puerto Rico and Colombia? - Management attributed growth in Puerto Rico to events and concerts, while Colombia's growth is linked to US traffic [106]

Financial Data and Key Metrics Changes - Total revenues increased by 5% year on year to 7,400,000,000 pesos, reflecting growth across operations, particularly in Puerto Rico and Colombia [7][8] - Consolidated EBITDA rose slightly by 2% year on year, reaching 5,000,000 pesos, with Puerto Rico and Colombia posting double-digit growth [12] - The adjusted EBITDA margin, excluding construction revenue, stood at nearly 68%, down from 69% in the same quarter last year [12] Business Line Data and Key Metrics Changes - Mexico, accounting for 72% of total revenues, posted a low single-digit increase of 0.7% in revenues, with growth in both aeronautical and non-aeronautical revenues [8] - Puerto Rico contributed 17.7% of total revenues with high teens growth, while Colombia, accounting for 12% of total revenues, posted 15.4% growth [8][9] - Commercial revenue per passenger reached nearly 140 pesos, representing mid-single-digit year-on-year growth, with Colombia leading at a 22% increase [10] Market Data and Key Metrics Changes - Passenger traffic remained largely flat year on year at 17,700,000, with Puerto Rico showing 3% growth, while Mexico reported a decline of nearly 2% [4][5] - International travel in Mexico saw declines from all regions, with Europe down 4.7%, the US down 5.3%, and South America down 2.7% [5] - A significant portion of the decline in international traffic, approximately 38%, is attributed to the new airport in Tulum [5] Company Strategy and Development Direction - The company continues to invest in infrastructure and expand commercial offerings, having opened 47 new commercial spaces over the last twelve months [9] - The strategy includes modernization and expansion projects at Mexican airports, with ongoing work at Lincoln Airport and taxiway hotels in Puerto Rico [15] - The company remains focused on long-term growth potential despite current market uncertainties [6][16] Management's Comments on Operating Environment and Future Outlook - Management expects traffic in Mexico to gradually stabilize over the next year as operational issues related to aircraft are resolved [6] - The company does not anticipate a material impact from potential US Department of Transportation restrictions on Mexican carriers [6] - Management expressed confidence that travel-related disruptions are typically temporary and that the company is well-positioned to mitigate risks [16] Other Important Information - The company closed the quarter with nearly 20,000,000,000 pesos in cash and cash equivalents, up 30% year on year [13] - A foreign exchange loss of 1,200,000,000 pesos negatively impacted the bottom line, contrasting with a gain of 942,000,000 pesos in the same quarter last year [13] Q&A Session Summary Question: What drove the sequential decline in non-air revenues? - Management indicated that exchange rates played a significant role, along with a slight difference in passenger mix and issues at Terminal 2 [20][22] Question: What impact could lifted capacity restrictions in Mexico City have? - Management noted that an increase in operations at Mexico City Airport could benefit overall passenger traffic, but expressed doubts about significant changes occurring soon [21][24] Question: What is the current traffic situation at Tulum Airport? - Most traffic at Tulum is still primarily commercial flights from the US, with some domestic traffic [27][30] Question: What is the outlook for traffic growth in the second half of the year? - Management expects some normalization in traffic, with potential single-digit growth anticipated compared to the second half of 2024 [34][36] Question: What is the rationale behind the new debt? - The new debt is related to tax expenses at Cancun Airport, ensuring sufficient cash for future dividend payments [60][61] Question: What are the dynamics of international traffic in Puerto Rico and Colombia? - Growth in Puerto Rico is driven by events and concerts, while Colombia's growth is primarily linked to travel from the US [84]

Core Insights - Grupo Aeroportuario del Sureste (ASUR) reported a total revenue increase of 17.9% year-over-year (YoY) to Ps.8,715.4 million for the second quarter of 2025 [3][4] - The company experienced a decline in net income by 39.9% YoY, amounting to Ps.2,270.2 million, with earnings per share dropping by 41.6% to Ps.7.1494 [3][4] - Passenger traffic overall decreased by 0.1% YoY, with variations across regions: a 1.7% decrease in Mexico, a 3.2% increase in Puerto Rico, and a 1.0% increase in Colombia [4][5] Financial Highlights - Total revenue for Q2 2025 was Ps.8,715.4 million, up from Ps.7,394.0 million in Q2 2024, marking a 17.9% increase [3] - EBITDA increased by 2.3% YoY to Ps.5,024.9 million, while the adjusted EBITDA margin decreased to 67.6% from 69.2% in Q2 2024 [3][4] - The cash position at the end of June 2025 was Ps.19,815.9 million, with a debt to LTM adjusted EBITDA ratio of 0.1x [4] Operational Highlights - Passenger traffic in Mexico decreased by 1.7%, with international traffic down by 4.1% and domestic traffic up by 0.8% [4] - In Puerto Rico, passenger traffic increased by 3.2%, driven by a 15.2% rise in international traffic [4] - Colombia saw a 1.0% increase in passenger traffic, with international traffic up by 11.8% offsetting a 1.9% decline in domestic traffic [4] Dividend Information - ASUR distributed a cash dividend of Ps.80.00 per share, with the first tranche of Ps.50.00 paid in May 2025 and two additional extraordinary dividends of Ps.15.00 scheduled for September and November 2025 [4]

Group 1 - The article promotes Ian's Insider Corner, which offers access to initiation reports on new stocks, an active chat room, and weekly updates for members [1] - Ian Bezek, a former hedge fund analyst, has extensive experience in Latin American markets and specializes in high-quality compounders and growth stocks at reasonable prices [2] Group 2 - The article includes a disclosure stating that the analyst has a beneficial long position in specific stocks, indicating personal investment interests [3] - Seeking Alpha provides a disclaimer that past performance does not guarantee future results and that the views expressed may not reflect the overall opinions of the platform [4]

Company Overview - Grupo Aeroportuario del Sureste (ASR) is part of the Transportation group, which includes 122 companies and is currently ranked 4 in the Zacks Sector Rank [2] - ASR has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook [3] Performance Metrics - Over the past 90 days, the Zacks Consensus Estimate for ASR's full-year earnings has increased by 4%, reflecting improved analyst sentiment [4] - ASR has gained approximately 21.8% year-to-date, outperforming the average loss of 1.6% in the Transportation group [4] - In the Transportation - Services industry, which includes 23 companies, ASR is performing better with year-to-date returns compared to the industry's average gain of 0.5% [6] Comparative Analysis - Another outperforming stock in the Transportation sector is International Consolidated Airlines Group SA (ICAGY), which has returned 32.2% year-to-date and has a Zacks Rank of 2 (Buy) [5] - The Transportation - Airline industry, which includes ICAGY, is currently ranked 78 and has seen a gain of 4.5% this year [7]