SIMPAR & Subsidiaries Downgrading SIMH to Neutral on Holding Discount; JSLG Preferred Within the Group

Research evidence excerpt

SIMPAR & Subsidiaries Downgrading SIMH to Neutral on Holding Discount; JSLG Preferred Within the Group

J P M O R G A N Latin America Equity Research

02 July 2026

SIMPAR & Subsidiaries

Downgrading SIMH to Neutral on Holding Discount;

JSLG Preferred Within the Group

We are updating our estimates for SIMPAR (SIMH3, N) and its listed subsidiaries Latin American Transportation

ACMovida (MOVI3, N), VAMOS (VAMO3, OW), and JSL (JSLG3, OW), following Guilherme Mendes

Movida’s removal from restriction, the incorporation of J.P. Morgan's latest (55-11) 4950-4105

macroeconomic assumptions, and their respective capital increases. We take this guilherme.g.mendes@jpmorgan.com

opportunity to downgrade SIMPAR to Neutral (from Overweight) on valuation Julia Orsi

grounds, as its holding discount currently stands at 10% — below both our model's (55-11) 4950 3351

fair value estimate of 25% and the historical average of approximately 20%. While julia.orsi@jpmorgan.com

Banco J.P. Morgan S.A.

we acknowledge management's efforts to reduce leverage at the holding level —

R$1.2 billion post capital injection, down from R$4.0 billion in mid-2023 — we

believe that additional initiatives, such as a potential sale of the CS Infra Ports

division, are likely to yield only modest benefits, and may not be sufficient to

justify the current holding discount, in our view.

On a bottom-up basis, we observe marginal improvements in operating trends

across the group, gradually translating into results and supporting a steady

deleveraging process. That said, the macroeconomic backdrop remains a

headwind: uncertainty around potentially slower-than-expected interest rate cuts

has increased, while Brazil's October elections are likely to begin weighing on

market sentiment.