Covering the Mexican Economy, Actinver Research

Actinver

Covering the Mexican Economy

Actinver Research

Actinver is a mexican leading financial group, that generates well being for individuals and companies through advisory services that provides investment management to maintain and grow their wealth.

Equity Bottom-Up

GCC, S.A.B. de C.V. operates as a building products company. The Company produces, distributes, and markets cement, ready-mix concrete, aggregates, and other building materials for the construction industries. GCC serves customers worldwide.

<ul><li>The Cement Industry is an essential activity with an attractive growth perspective since cement is one of the most relevant commodities worldwide, especially for emerging economies.</li><li>Cement companies such as CEMEX and GCC are well positioned to continue capturing the potential growth in their markets through differentiated products and clear targets to reduce CO2 emissions.</li><li> Although we expect 2Q24 quarterly results to be weaker, with total EBITDA +1% YoY, any weakness in results is more than priced in at current prices, in our view.</li></ul>

The Cement Industry is an essential activity with an attractive growth perspective since cement is one of the most relevant commodities worldwide, especially for emerging economies.Cement companies such as CEMEX and GCC are well positioned to continue capturing the potential growth in their markets through differentiated products and clear targets to reduce CO2 emissions. Although we expect 2Q24 quarterly results to be weaker, with total EBITDA +1% YoY, any weakness in results is more than priced in at current prices, in our view.

Actinver Research - Cement Sector: Attractive Valuations Strengthened Potential Returns (Sector Update)

Macroeconomics

<ul>
<li>Once again, Mexican stocks had a negative day in line with the pessimistic sentiment observed in the North American stock markets.</li>
<li>In particular, the IPC index fell 1.31% to trade slightly above 53 thousand units. At the end of the session, 27 of the 35 companies included in the main local index had falls in their share prices</li>
<li>The mining company Industrias Peñoles (PE&amp;OLES * -4.65%) and the financial company Regional (R A -4.43%) had the largest share price declines at the end of the session. </li>
</ul>


Once again, Mexican stocks had a negative day in line with the pessimistic sentiment observed in the North American stock markets.
In particular, the IPC index fell 1.31% to trade slightly above 53 thousand units. At the end of the session, 27 of the 35 companies included in the main local index had falls in their share prices
The mining company Industrias Peñoles (PE&amp;OLES * -4.65%) and the financial company Regional (R A -4.43%) had the largest share price declines at the end of the session. 


Actinver MX Local Flavor: In line with U.S. indices, Mexican stocks have a negative day

<ul>
<li>The manufacturing survey shows that the stagnation in manufacturing production in May stems from a combination of slowing external demand and stagnation in domestic demand.</li>
<li>At the sectoral level, there is great heterogeneity in the capacity used.</li>
<li>Last week, the National Institute of Statistics and Geography (INEGI) informed that manufacturing production stagnated in May (0.01% MoM) and accumulated a contraction of -1.8% so far this year (https://bit.ly/MXDAILYESP_2024_07_12).</li>
</ul>


The manufacturing survey shows that the stagnation in manufacturing production in May stems from a combination of slowing external demand and stagnation in domestic demand.
At the sectoral level, there is great heterogeneity in the capacity used.
Last week, the National Institute of Statistics and Geography (INEGI) informed that manufacturing production stagnated in May (0.01% MoM) and accumulated a contraction of -1.8% so far this year (https://bit.ly/MXDAILYESP_2024_07_12).


Actinver - Macro Daily: Manufacturing Industry

<ul>
<li>Mexican stocks opened the week with a loss, breaking a streak of five consecutive days of gains.</li>
<li>The IPC index fell 1.17%, trading at 54,312 points on a day in which most of its members experienced price declines.</li>
<li>In particular, the insurance company Quálitas (Q* -3.11%) and Grupo Financiero Inbursa (GFINBUR O -3.03%) were the companies with the most negative performance. </li>
</ul>


Mexican stocks opened the week with a loss, breaking a streak of five consecutive days of gains.
The IPC index fell 1.17%, trading at 54,312 points on a day in which most of its members experienced price declines.
In particular, the insurance company Quálitas (Q* -3.11%) and Grupo Financiero Inbursa (GFINBUR O -3.03%) were the companies with the most negative performance. 


Actinver MX Local Flavor: Mexican market opens the week with a decline in share prices.

<ul>
<li>In May, industrial activity grew 0.7% MoM, driven by mining and construction.</li>
<li>Unlike what happened at the beginning of the year, government projects are no longer the driving force of construction, but rather private sector construction.</li>
<li>In May, industrial production reversed the decline seen in April (-0.4% MoM), growing 0.7% MoM.</li>
</ul>


In May, industrial activity grew 0.7% MoM, driven by mining and construction.
Unlike what happened at the beginning of the year, government projects are no longer the driving force of construction, but rather private sector construction.
In May, industrial production reversed the decline seen in April (-0.4% MoM), growing 0.7% MoM.


Actinver - Macro Daily: Industrial Activity