1 Change in Recommendation Change in T.P. Change in Estimates Quarterly Review Other ■ We are initiating coverage of Grupo Lala with a BUY recommendation and a 2015 target price of MP 33.0. After the recent selloff in the market, the stock even trades at a discount to its international peers, notwithstanding a higher growth rate both at the operating and net level. ■ Lala is Mexico’s leading Dairy company with a dominant market share in milk and significant participation in other segments such as cheese and cream. Operations under two mega brands, Lala and Nutrileche, allow for significant synergy opportunities going forward. ■ Lala has Mexico’s largest chilled distribution network; operating on the base of 17 plants and 160 distribution centers, Lala’s 7,300 delivery trucks serve over half a million points of sale. Leverage opportunities are ample. ■ We regard Lala as a solid base for further growth in the Dairy industry. Half of revenues come from a stable and mature segment (milk) and the other half (functional) from share-gaining categories. Moreover, the financial structure enhanced post-IPO awaits expansion opportunities abroad that should gain traction sooner rather than later. We are initiating coverage of Lala with a BUY recommendation. We regard Lala as a compelling value opportunity that on top of that, has significant growth potential both via acquisitions and organic expansion, particularly in its functional products portfolio (46% of revenues, 14e). Recent market turmoil has left Lala trading at a significant discount to its peers’ market ratios in spite of exhibiting higher growth rates, while our DCF-driven target does not incorporate the application of the company’s excess cash, which we believe will be put to work sooner rather than later. While the trigger for a better valuation —and stock performance—should be a significant acquisition, current prices offer a short-term opportunity not to be missed. A number of positive elements support our optimism on Lala, not only company-specific, but also underlying in the industry. The company’s undisputed market leadership in key dairy products should be replicated in other categories, including higher added-value functionals, by leveraging its strong brand positioning with cross-selling possibilities. The product diversification has changed the face of the company in the past ten years thanks to investments in innovation capacity and value-added strategy that are still to bear fruits. Mexico has a favorable frameset owing to the still low per-capita consumption and ample recognition of dairy products as healthy options. Demographic expectations and disposable income projections also bode well for demand outlook, while on a fundamental basis, the country is among the main milk importers in the world and Lala’s long-term relationship with Mexico’s top farmers yields it an advantage in the supply chain side that is difficult to replicate. Recent acquisition in CA is only the start of expansion. The year-long wait for an acquisition (since the IPO) was just recently concluded with the agreement to buy the assets of Eskimo in Nicaragua, but the size (only +1.5% of sales for Lala) makes this just the first step within the company’s long-awaited boost to its international strategy. We expect more to come in the medium term. The risk profile we perceive in Lala is low, as the most relevant threats that we identify have to do with external issues that would affect the general economic trends. As a result, shifts in economic conditions —specifically those affecting disposable income—sit at the top of possible concerns, while regulatory changes (not only in price, but also regarding sanitary oversight) are also a notable element that nonetheless seems to have a very low probability. On the other hand, internal issues we regard as relevant are typical execution risks, but we should also note that poor disclosure yields lower-than-desired earnings visibility, while recent management changes (new CFO starting in January) are also noteworthy. Last Price: P$ 28.35 Price Target 2015: P$ 33.0 16% Return Figures in millions of pesos 2013 L12m 2014e 2015e LALA High Liquidity Market Data: Mkt. Cap (mn) USD 4,838 Firm Value (mn) USD 4,329 3mo. Avg. (mn) USD 4.6 1yr. High—low MP 26.34—MP 34.95 Float 20.7% Lala vs. IPC (December 2013 = 100) A solid foundation for an attractive growth story in the making Buy Equity Research GRUPO LALA, S.A.B. DE C.V. Food & Beverages December 22, 2014 Carlos Hermosillo Bernal Food, Retail, Beverages [email protected]+52 (55) 1103 6600 x 4134 José Antonio Cebeira González Food, Retail, Beverages [email protected]+52 (55) 1103 6600 x 1394 Actinver Corporate Headquarters Guillermo González Camarena 1200 11th Floor, Centro Ciudad Santa Fe México, D.F. 01210 Sales 43,156 44,273 44,891 47,739 EBITDA 5,147 5,382 5,473 6,003 Margin 11.9% 12.2% 12.2% 12.6% Growth YoY 9.1% 6.5% 6.3% 9.7% Net Profit 2,579 3,234 3,247 3,623 Margin 6.0% 7.3% 7.2% 7.6% Growth YoY 107.8% 207.3% 25.9% 11.6% Total Assets 26,333 28,786 29,051 32,918 Cash 8,442 9,944 7,270 9,327 Total Liabilities 6,128 7,795 5,423 5,937 Debt 727 720 87 86 Equity 20,204 20,992 23,628 26,981 Majority 19,930 20,711 23,331 26,684 Multiples EV/Sales 1.5x 1.4x 1.4x 1.3x EV/EBITDA 12.2x 11.7x 11.6x 10.2x P/E 27.2x 21.7x 21.6x 19.4x ROE 42.7% 26.3% 14.9% 14.3% ROA 25.0% 17.0% 11.2% 11.1% Net Debt/ EBITDA (1.5x) (1.4x) (1.3x) (1.5x) Dividend Yield 3.5% 2.7% 0.0% 1.5% 90 100 110 120 Dec 13 Feb 14 Apr 14 Jun 14 Aug 14 Oct 14 Dec 14 LALA IPC
28
Embed
GRUPO LALA, S.A.B. DE C.V. - Actinver · We are initiating coverage of Grupo Lala with ... some products with Nestle branding in ... the company has a license to market some products
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
Change in Recommendation Change in T.P. Change in Estimates Quarterly Review Other
■ We are initiating coverage of Grupo Lala with a BUY recommendation and a 2015 target price of MP 33.0. After the recent selloff in the market, the stock even trades at a discount to its international peers, notwithstanding
a higher growth rate both at the operating and net level.
■ Lala is Mexico’s leading Dairy company with a dominant market share in milk and significant participation in other segments such as cheese and cream. Operations under two mega brands, Lala and Nutrileche, allow for
significant synergy opportunities going forward.
■ Lala has Mexico’s largest chilled distribution network; operating on the base of 17 plants and 160 distribution centers, Lala’s 7,300 delivery trucks
serve over half a million points of sale. Leverage opportunities are ample.
■ We regard Lala as a solid base for further growth in the Dairy industry. Half of revenues come from a stable and mature segment (milk) and the other half (functional) from share-gaining categories. Moreover, the financial structure enhanced post-IPO awaits expansion opportunities
abroad that should gain traction sooner rather than later.
We are initiating coverage of Lala with a BUY recommendation. We regard Lala as a compelling value opportunity that on top of that, has significant growth potential both via acquisitions and organic expansion, particularly in its functional products portfolio (46% of revenues, 14e). Recent market turmoil has left Lala trading at a significant discount to its peers’ market ratios in spite of exhibiting higher growth rates, while our DCF-driven target does not incorporate the application of the company’s excess cash, which we believe will be put to work sooner rather than later. While the trigger for a better valuation —and stock performance—should be a significant acquisition, current prices offer a short-term opportunity not to be missed.
A number of positive elements support our optimism on Lala, not only company-specific, but also underlying in the industry. The company’s undisputed market leadership in key dairy products should be replicated in other categories, including higher added-value functionals, by leveraging its strong brand positioning with cross-selling possibilities. The product diversification has changed the face of the company in the past ten years thanks to investments in innovation capacity and value-added strategy that are still to bear fruits. Mexico has a favorable frameset owing to the still low per-capita consumption and ample recognition of dairy products as healthy options. Demographic expectations and disposable income projections also bode well for demand outlook, while on a fundamental basis, the country is among the main milk importers in the world and Lala’s long-term relationship with Mexico’s top farmers yields it an advantage in the supply chain side that is difficult to replicate.
Recent acquisition in CA is only the start of expansion. The year-long wait for an acquisition (since the IPO) was just recently concluded with the agreement to buy the assets of Eskimo in Nicaragua, but the size (only +1.5% of sales for Lala) makes this just the first step within the company’s long-awaited boost to its international strategy. We expect more to come in the medium term.
The risk profile we perceive in Lala is low, as the most relevant threats that we identify have to do with external issues that would affect the general economic trends. As a result, shifts in economic conditions —specifically those affecting disposable income—sit at the top of possible concerns, while regulatory changes (not only in price, but also regarding sanitary oversight) are also a notable element that nonetheless seems to have a very low probability. On the other hand, internal issues we regard as relevant are typical execution risks, but we should also note that poor disclosure yields lower-than-desired earnings visibility, while recent management changes (new CFO starting in January) are also noteworthy.
Last Price: P$ 28.35
Price Target 2015: P$ 33.0 16% Return
Figures in millions of pesos
2013 L12m 2014e 2015e LALA High Liquidity
Market Data:
Mkt. Cap (mn) USD 4,838
Firm Value (mn) USD 4,329
3mo. Avg. (mn) USD 4.6
1yr. High—low MP 26.34—MP 34.95
Float 20.7%
Lala vs. IPC (December 2013 = 100)
A solid foundation for an attractive growth story in the making Buy
Dec 13 Feb 14 Apr 14 Jun 14 Aug 14 Oct 14 Dec 14LALA IPC
2
CONTENT
Investment thesis…..………..…………….…………………. 3
Positives…………………….…..……………………………………. 3
Negatives…………………….…..………………………………….. 5
Valuation…………………………………………....……………...… 7
Discounted cash flow ……..……………………………………....…. 7
Relative valuation………………………………………...……….…. 8
Financial results…………………..……....……………………….. 9
Financial projections……………………………………………… 10
Industry Overview…………………………………………............. 12
Industry in Mexico…………………….………………….………..… 13
Company description……………………………….…………..... 18
Management and Board of Directors…………..……….………….... 23
Shareholders structure………….…….………………...…………….. 25
3
Investment thesis
We are initiating coverage of Lala with a Buy rating based on a TP of MP 32.00 and an implied potential return of 18%, plus an expected 2015 dividend yield in the range of 1.6%. Our target is mostly derived from a DCF exercise, but also implies market ratios that would be trading largely in line to those of similar global companies, while ratios that incorporate growth expectations such as PEG do show an advantageous position, as do the profitability indicators that place Lala as one of the outstanding achievers among its comparable companies’ universe.
Nonetheless, we regard one of the key value drivers for the company will be an eventual acquisition that finally deploys the equity raised a year ago, and by which the company now boasts an inefficient balance sheet on which the market has shown increased concerns as of late. We have not included any assumption regarding acquisitions within our estimates, so any announcement in the coming months could add value beyond our initial valuation presented in this document. While its market leadership position within a mature category such as milk (53% of consolidated sales) does have a limiting effect over aggressive growth expectations, we regard the opportunities in functional dairy products, based both in cross selling and innovation, will lead to higher growth rates than we could normally expect in this industry even before considering the low per-capita milk consumption in Mexico.
Market Leadership. We regard Lala as the market leader in dairy products industry within Mexico, as it commands a leading market share position in several categories such as milk (52%), creams (50%), cheese (34%) and dessert (46%) categories, while it holds the second place in yogurt.(26%). The company markets over 600 SKUs and reaches more than half a million points of sale with its chilled distribution network that includes 161 distribution centers (five located in Guatemala) served by a fleet of 7,300 delivery trucks and 6,100 routes. Production is based on 16 plants located in the central-northern region known as La Laguna —hence the name for the company—, plus one in Guatemala.
Brand positioning. The company has a strong brand positioning in the market anchored in two mega-brands —defined as annual sales over USD 1,000 mn— that rank among Mexico’s top consumer brands: Lala and Nutrileche. Furthermore, Lala has roughly 25 additional brands that also enjoy ample consumer recognition either by themselves or by the fact that these are commonly linked to any of the two aforementioned megabrands, enhancing customer loyalty among other categories. Besides its own brands, the company also markets some products with Nestle branding in Mexico, mostly yogurt, but also cheese, as it reached an agreement in mid-2013 to take over Nestle’s refrigerated food unit. Also, attending the higher-end niches, the company has a license to market some products under the Parmalat brand. Lastly, its operations in Guatemala are based on the Foremost brand that is a traditional name in such country.
Portfolio diversification, innovation capacity and value added strategy. With a broad product portfolio that encompasses not only diverse categories, but also a complete range of price points, the company participates in the entire socioeconomic spectrum and therefore has the ability to capitalize on several growth possibilities, either starting with natural population growth, shifts in economic trends, or even new product categories. The relatively recent establishment of its R&D center offers enhanced ability to adapt current offerings as demand changes according to health and other fashion trends, but also has allowed to a faster implementation of a value-added strategy that has seen functional products increasing their share from 42% of consolidated sales in 2011, to 47% in its latest quarterly report (3Q14).
Low per capita consumption of dairy products in Mexico is set to change. As a developing nation with lower-than-average disposable income among its population, Mexico has comparatively lower consumption levels of dairy products, including an average 125 liters in milk that compare to a 129 average in Latam, but also including a dismal 2.2 kg in cheese that compares to 5.4 in Latam, or 6.6 kg yogurt that contrasts to 10.6 in Latam. As is the case of dairy demand in developed nations, it is to be expected that as long as Mexico’s middle class continues to grow, so will the average consumption patterns of dairy products, and more so looking at the higher value-added spectrum. Mexico has both an encouraging outlook regarding the economic improvement among its population, but also in terms of
4
demographics that include a concentration of consumers below 30 years of age. In the next ten years the middle class in Mexico could reach just over 40% of total population, rising from the current levels of just over 30%, meaning at least some 12 million additional people will have an enhanced economic profile that should bolster absolute demand, but also mark a trend towards a higher-quality or value-added product such as functional dairy.
Favorable perception as a healthy product. Besides the positive outlook that derives from Mexico’s economic perspective and demographic composition, it should be stressed that the general perception of dairy products in Mexico is notably positive in health-related terms, contrary to some other countries in which digestive disorders and fat contents are a generalized concern that limit potential consumption of some categories such as milk.
Cross-selling opportunities. The absolute leadership in its milk categories confers Lala the ability to exploit such market advantage and expand it to other categories within its functional products. In fact, this has been the case since the introduction of new categories in recent years, but we believe there is still room for growth in many of such categories. The lead example might be taken from cream, which has a cross selling rate of 75%, meaning that three quarters of customers that buy milk also buy the company’s cream. Assuming an average product basket, that percentage seems fitting to consumers’ consumption habits, yet in categories such as cheese (30% cross selling), yogurt (47%) and drinkable yogurt (49%) there is a potential to either substitute other competing brands, or entice the consumption of products that are considered as secondary in terms of nutritional contribution—this, of course, should come in line to the population’s disposable income improvement.
Extensive chilled distribution network. We regard this as one of the key value elements to Lala, given that even if the UHT process has massively enhanced the average shelf life and quality assurance in a significant portion of its milk products, the vast majority of functional categories have a shorter shelf life and need to be distributed as fast as possible and with the appropriate handling in order to secure that the products’ characteristics remain unaltered and make them a competitive offering for the end consumer. Offering a variety of 600 SKUs to half a million points of sale are easy numbers to remember, yet not so to achieve. Likewise, the coordination of 7,100 delivery trucks running 6,300 routes on the base of 160 distribution centers is no small feat and offers a robust distribution channel that can easily be leveraged in the eventuality of new products/categories entering Lala’s production scope.
Extraordinary cash generation and solid finances. Following the company’s IPO last year, Lala has sustained what we regard as an excessively liquid balance sheet as it continues to explore possible acquisitions—one of the main reasons behind the IPO in the first place—, but has yet to make a significant investment since. At the end of 3Q, the company reported a net cash position of MP 8,758 mn, just over 12% of its market capitalization and nearly one third of total assets. Assuming an average 1.2x capex to depreciation rate in our earnings model, we project a hefty free cash flow generation that will only add to the already massive cash balance at a rate of at least MP 2,000 mn a year, conservatively.
Further avenues for growth. An outright acquisition is the main growth opportunity that the market has been expecting since the IPO, but it has failed to materialize in the past twelve months. However, we believe it is only a matter of time before the company announces news in this front. Notwithstanding, besides this type of growth driver, we should stress that the company has a number of viable options that complement its organic platform and indeed has been actively exploiting some of them; we also expect these to play a significant role in upcoming results, including themes like distribution, product categories, and productivity.
These three areas have each had an impact already, starting with the improvement of what is already an impressive distribution network, but that the company considers a work in progress. The creation or entrance into new product categories has also been a constant theme in the last years for Lala— a trend started in the 90’s—, and helped transform the product range from a basic staple into a broad range of dairy products that serve different needs or requirements, including economic concerns, nutritional factors, and of course
5
lifestyle trends. Taking into consideration the chilled distribution network as one of Lala’s core advantages, a natural evolution towards non-dairy chilled products such as cold cuts is a fitting option that management has been actively considering, and we believe a direct incursion starting from a small scale could even be an option here. Finally, productivity has had its biggest leap with the integration of factories in multiproduct clusters the past two decades, but the availability of space and in-house development of product and process enhancements mean there is also room for improvement in this area.
Barriers of Entry. A successful operation in the dairy industry within Mexico poses significant barriers of entry, most notably a chilled distribution network that allows for a fast and efficient delivery of time-sensitive products, while on the other hand the long-time relationship between farmers and dairy companies makes it hard for the suppliers to shift customers, making supply of raw milk a scarce good for would-be entrants to the market, more so if we consider that the country is a net importer.
Main risks
Sensibility to changes in economic conditions and disposable income. Even when dairy products have an outstanding reputation as health-supporting inputs within the Mexican population, eventual changes in consumer confidence, employment rates, salary level and other economic-linked factors that have direct effects over household disposable income usually have an incidence in dairy demand. Lala has a full range of products that fit most relevant price levels, but even so, at the lower segments of the economic pyramid, customers not only trade down, but also cut off completely in some of the higher added-value products that are categorized as functional.
Customary spot price settling for raw milk, its main input. As an industry standard, Lala´s volume and price negotiation over raw milk is usually done with a short-term scope, and dealings with farmers are non-exclusive. The smooth running on the supply side of its key raw material (industry-wide, raw milk is about two-thirds of the cost structure) is largely done on a customary basis and could be subject to disruptions in the event of unexpected changes on the farmers’ side. Changes in the price of key inputs are not easily translated into final-consumer pricing, so unexpected shifts in the costs of some raw materials (or many other inputs, for that matter) could have adverse effects in short term variations in the company’s gross margins.
40% of supplying farmers are related parties. Besides the above-discussed price and volume supply setting scheme, it is worth noting that a significant percentage of supplying farmers are related parties, which could lead to conflicts of interests either among them, or in relation to the company.
Regulatory changes. The company’s products are subject to sanitary regulation that could eventually change, becoming stricter and requiring further quality controls that translate into higher costs, constitute a temporary disruption of supply, or otherwise limit Lala’s ability to conduct business at current levels. Also, a minimal part of the company’s product portfolio has been subject to a calorie-derived excise tax since the start of 2014, yet there is no assurance that this could change adversely in the future, hitting a wider array of products in Lala’s portfolio. Finally, although it has been a long time since price controls were exerted by the government, there is no guarantee that price limitations could be enforced in the eventuality of eroded economics within the country.
High competition. The most significant competition in Mexico consists of large domestic players that have a considerable tradition in the industry, but the market has also some international players of well known brands. Small scale production is in reality not a concern as the very few that do exist focus on self-consumption or have a very limited production capacity. As such, the main competitors have the size and financial backing in order to enforce price-based competition and organize significant marketing campaigns should market conditions turn negative. Enhanced third-party competition looking for increases in market share could have an adverse impact on operating profitability for most, if not all, of the relevant players.
6
Poor disclosure. We believe the company’s earnings visibility is hindered by its poor disclosure practices, as it provides limited information regarding its operating results. For an enterprise that sells over 600 SKUs under an umbrella of more than 25 brands and at least six categories, breaking down sales in just two segments (milk & functional) without information about price or volume behavior seems rather insufficient. Cost structure is also undisclosed, so keeping track of potential incidences without a category breakdown is complicated. Likewise, installed capacity is not disclosed on the basis of a variable-output capacity due to the factories’ flexibility, yet some indication of a range would be widely welcome.
Recent management changes. Even though the majority of management has a long trajectory within the company’s operations, the recently announced change of CFO has not been well received by the markets. Mr. Antonio Zamora will leave the company starting January 1st 2015, due to personal reasons, and will be replaced by Gabriel Fernandez, who comes with an impressive CV based on a long-time experience in international consumer companies.
7
Valuation
We are initiating coverage of Grupo Lala, with a BUY recommendation and target
price of MP 33.0 per share for 2015E. Our price is based on a discounted cash flow
valuation which assumes a WACC of 8.3%, entirely representative of the company’s cost
of equity and a very low Beta. A standardizing exercise assuming a higher Beta and a
more efficient equity capital structure yields a similar WACC, so we prefer to stick with the
discounting rates that derive from the company ―as is‖, instead of playing with different
scenarios that would yield pretty much the same end results in terms of valuation. It is
worth noting that throughout our projection timeframe we are not assuming the application
of excess cash in a relevant acquisition that should come eventually, so any
announcement in this front would have a net positive impact and add to our price target,
assuming an attractive value and strategic fit is achieved in such acquisition.
At our target price for 2015, Lala would be trading at an EV/EBITDA multiple of 12.1x
for 2015 and a 22.5x P/E ratio, which are largely in line to the average estimates for a
sample of comparable companies.
LALADiscounted Cash Flow Model (2015-2020E)
Millions of Pesos 2015E 2016E 2017E 2018E 2019E 2020E Perp.
Araceli Espinosa Elguea Head of Fixed Income Research (52) 55 1103 -66000 x6641 [email protected]
Jesús Viveros Hernández Fixed Income Research (52) 55 1103 -66000 x6649 [email protected]
Mauricio Arellano Sampson Fixed Income Research (52) 55 1103-6600 x4132 [email protected]
28
Disclaimer
Guide for recommendations on investment in the companies under coverage included or not, in the Mexican Stock Exchange main Price Index (IPC)
StrongBuywith an extraordinary perspective. According to the analyst, in the next twelve months, the valuations of stock
and/or prospects for the sector are EXTREMELY FAVORABLE
Buy. According to the analyst, in the next twelve months, the stock’s valuation and / or prospects for the sector are VERY
FAVORABLE
Neutral. According to the analyst, in the next twelve months, the valuation of stock and / or sector ARE NEUTRAL OR
FAVORABLE but with a similar perspective to the IPC
Belowmarket. According to the analyst, in the next twelve months, the valuation of stock and / or sector outlook ARE NOT
POSITIVE
Sell. According to the analyst, in the next twelve months, the valuation of stock and / or sector outlook ARE NEGATIVE, or
likely to worsen
In reviewwith positive outlook
In review with negative or unfavorable perspective
ImportantStatements.
a) Of theAnalysts:
―The analysts in charge of producing the Analysis Reports: Jaime Ascencio Aguirre; Mauricio Arellano Sampson; Enrique Octavio Camargo Delgado; Ismael Capistrán Bolio; Pablo Enrique Duarte de León; Araceli Espinosa Elguea; Roberto Galván González; Ana Cecilia González Rodríguez; Carlos Hermosillo Bernal; Santiago Hernández Morales; Martín Roberto Lara Poo; Ramón Ortiz Reyes; Juan Enrique Ponce Luiña; Federico Robinson Bours Carrillo; Gustavo Adolfo Terán Durazo; Jesús Viveros Hernández, declare‖:
1. "All points of view about the issuers under coverage correspond exclusively to the responsible analyst and authentically reflect his vision. All recommendations made by analysts are prepared independently of any institution, including the institution where the services are provided or companies belonging to the same financial or business group. The compensation scheme is not based or related, directly or indirectly, with any specific recommendation and the remunerationis only received from the entity which the analysts provide their services.
2. "None of the analysts with coverage of the issuers mentioned in this report holds any office, position or commission at issuers underhis coverage, or any of the people who are part of the Business Group or consortium to which they belong. They have neither held any position during the twelve months prior to the preparation of this report. "
3. "Recommendations on issuers, made by the analyst who covers them, are based on public information and there is no guarantee of their assertiveness regarding the performance that is actually observed in the values object of the recommendation"
4. "Analysts maintain investments subject to their analysis reports on the following issuers: AC, ALFA, ALPEK, ALSEA, AMX,AZTECA, CEMEX, CHDRAUI, FEMSA, FIBRAMQ, FINDEP, FUNO, GENTERA, GFREGIO, GRUMA, ICA, IENOVA, KOF, LAB, LIVEPOL, MEXCHEM, OHLMEX,POCHTEC, TLEVISA,SORIANA, SPORTS, VESTA, WALMEX.
b) On Actinver Casa de Bolsa, S.A. de C.V. Grupo Financiero Actinver
1. Actinver Casa de Bolsa, S.A. de C.V. GrupoFinanciero Actinver, under any circumstance shall ensure the sense of the recommendations contained in the reports of analysis to ensure future business relationship.
2. All Actinver Casa de Bolsa, SA de C.V. GrupoFinanciero Actinver business units can explore and do business with any company mentioned in documents of analysis. All compensation for services given in the past or in the future, received by Actinver Casa de Bolsa, SA de C.V. GrupoFinanciero Actinver by any company mentioned in this report has not had and will not have any effect on the compensation paid to the analysts. However, just like any other employee of Actinver Group and its subsidiaries, the compensation being enjoyed by our analysts will be affected by the profitability gained by Actinver Group and its subsidiaries.
3. At the end of each of the previous three months, Actinver Casa de Bolsa, SA de C.V. Actinver Financial Group, has not held any investments directly or indirectly in securities or financial derivatives, whose underlying are Securities subject of the analysis reports, representing one percent or more of its portfolio of securities, investment portfolio, outstanding of the Securities or the underlying value of the question, except for the following: * AEROMEX, BOLSA A, FINN 13, FSHOP 13, SMARTRC14.
4. Certain directors and officers of Actinver Casa de Bolsa, SA de C.V. GrupoFinanciero Actinver occupy a similar position at the following issuers: AEROMEX, MASECA, AZTECA, ALSEA, FINN, MAXCOM, SPORTS, FSHOP and FUNO.
This report will be distributed to all persons who meet the profile to acquire the type of values that is recommended in its content.
To see our analysts change of recommendationsclick here.