ASL Securities Co., Ltd. has outlined in its analysis that it has an optimistic outlook on Minor International Public Company Limited (SET: MINT) the final quarter with expected continuous growth due to the high season in Thailand’s tourism sector.
The firm underlined MINT’s third-quarter results for 2024 that showed operating revenue of THB 42 billion, marking a 5% increase compared to the same period last year. This growth is driven by the continuous positive trend in the hotel segment, evidenced by a 9% rise in Revenue per Available Room (RevPar) and a 7% increase in Average Daily Rate (ADR) fueled by the European travel season. Although Thailand is in the low season, it benefits from strong demand in the business and leisure travel sector, with ADR up 9%. In the food business, the Same-Store Sales Growth (SSSG) of major brands in Thailand and Singapore is still on the uptrend, contributing to a net profit of THB 2.6 billion, an increase of 16%.
Aside from a positive momentum in Thai tourism for the final quarter, the food business is also anticipated to see increased sales and customer numbers through restaurant chain campaigns.
Moreover, the company plans to set up a Real Estate Investment Trust (REIT) to sell hotels into a fund sized around USD 1.2 billion, holding approximately 50% equity, which will provide the company with about USD 700 million, or THB 23-24 billion. Of this amount, approximately THB 10 billion will be used to pay off debts, with the remainder earmarked for investment expansion, expected to reduce the company’s interest burden by THB 500 million per year. The company expects to complete the REIT establishment by the end of 2025.
In its long-term plan, MINT aims to expand to over 780 hotels and 3,700 restaurant outlets by 2026, up from 532 hotels and 2,645 restaurant outlets at the end of 2023. MINT is also receiving positive sentiment from its inclusion in the FTSE Large Cap Index, effective December 23 of this year.
Additionally, ASL Securities raised MINT as its “Stock Pick” with a strategic target price of THB 29.25 per share.
