After reporting a strong business result in the first quarter, Minor International is looking ahead to its second and third quarter that the company could deliver its peak performance for the year through hotel operations and the support from its food segment.
Minor International Public Company Limited (SET: MINT) reported a net profit over 1,100 million baht in the first quarter of this year from favourable foreign exchange and extra gains during the low seasonality in its primary European operations. Still, the bottom line showed a significant improvement from a net loss of 980 million baht in 1Q23.
Hotel and restaurant businesses both reported robust financial performance in 1Q24 from continued rising demand, which enabled the Company to implement strategic dynamic pricing, drive increased dine-in traffic and lock in further cost optimization.
Looking into the second and third quarter, which is the high season for Minor’s hotel operations, Europe & Americas will be a key beneficiary of sporting and entertainment events including the Summer Olympics, UEFA Euro 2024 and music concerts, given its portfolio’s strong footprint in prime urban locations.
Room rates are expected to increase, following a rise in demand and a hotel brand upgrade.
Strong performance has been displayed through revenue in April that continues to increase with double-digit growth. Minor also reveals that forward bookings in May also posted 12% growth above last year.
CGS International Thailand wrote in a note, expecting MINT to post a strong net profit from a high season of European tourism going into the second and third quarter. The broker recommended “Add” on MINT with a target price at THB 38.00 per share.
