LatAm Octant #24 | Andean Trip Takeaways: Along The Reform Road

研报英文原文证据摘录

LatAm Octant #24 | Andean Trip Takeaways: Along The Reform Road

he coming months, helping to smooth things out. This should be driven by a combination of extra

oil export capacity from 1H27, privatisations (toll roads, rail), unlocking investment in other sectors

and lower inflation. The expanded RIGI incentive scheme, with over US$100bn in projects applied

for, should continue to underpin new investments, and we see our Buy-rated Vista, YPF and Pampa

pushing ahead with their growth plans.

Chile: Removing red-tape remains key: Despite some volatility in the first few months of the new

Chilean administration, the message coming from the meetings was clear: the outlook for Chile

has materially improved, even if some measures are gradual to become tangible. The approval

of the broad reform bill (aka the Reconstruction bill) in Congress is key, as it aims to lower taxes

and remove much of the red tape that has hindered the Chilean economy in recent years. This,

together with streamlining permitting, should unlock new lithium and copper investments - the

government has identified over US$100bn in new mining investments over the next decade with

SQM’s Salar Futuro expansion project at the heart of it. We also see LTM airlines benefitting from

an improvement in Chile’s broader economy.

Peru: All to go for – but no honeymoon: The prospect of a more business-friendly and more stable

administration under president-elect Keiko Fujimori has significantly improved the tone from the

variety of companies we met. Domestic consumption remains strong (eg, new vehicle sales are at

record levels), and a clearer and more stable set of rules should help boost mining & infrastructure Alejandro Anibal Demichelis * | Equity Analyst

investment and economic growth.