Diario | Latin America

Research evidence excerpt

Diario | Latin America

on (arguably the main catalyst for the stock) appears Exhibit 3 - Brazil - Net monthly trade with US &

delayed by political rulings, recent indications pointed to broad alignment on the main contract China [US$bn]

terms. We continue to expect the process to advance in the coming months and keep our Buy call 86

on CAAP. Brazilexporternet 4

(2)SCCO (Buy) | GMexico (Hold) | SCCO ups 2Q26 cash dividend by 10% QoQ. SCCO has raised Brazilimporternet

its 2Q cash dividend by 10% QoQ to US$1.1/sh and its scrip payout by 20% to 0.012 shares per Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 Jan-26 (4)

share (US$2.1/sh at current prices). This pushes SCCO’s total FY26E run-rate distributions to US Brazil-US trade balance (net to Brazil) Brazil-China trade balance (net to Brazil)

.

$10bn (35:65 cash/shares), yielding c7%. Distributions should further swell parent GMexico’s cash Source: Brazil Senex; Jefferies

balance, which we estimate at US$4.1bn post-SAAVI deal. Attention now turns to 2Q26 results on

Jul-22: we forecast US$2.8bn EBITDA (+4% QoQ), broadly in line with a FactSet consensus that has

edged higher in recent weeks.

Charting LatAm #3: Tariffs, Trade & Treaties. Historically, Brazil has consistently run a large trade

surplus with China, while its balance with the US has hovered around zero – underscoring that China

is by far the more important export destination and that disruptions to US trade would have a more

limited impact on Brazil’s trade account. Full Chartbook

Francisco Barbosa * | Equity Analyst

Magazine Luiza (Buy) | Invite | Fireside Chat with MagaluPay CEO. We are hosting a virtual group +1 (212) 284-2197 | fbarbosa@jefferies.com