According to an analysis by CGS International Securities (Thailand) (CGSI), an extensive power outage has wreaked havoc across Spain, Portugal, and parts of southern France, disrupting the daily lives of millions.
This has led to halted flights, train cancellations, and left entire cities without power or telecommunications. In response to the crisis, Spain has declared a state of emergency as much of the Iberian Peninsula grapples with widespread electrical failure.
Portuguese grid operator REN indicated that the blackout might have been triggered by a “very large oscillation in the electrical voltages” originating from Spain’s grid, subsequently affecting Portugal’s system.
CGSI noted that such an incident sent a negative sentiment to Minor International Public Company Limited (SET: MINT), with the company’s hotels in Spain and Portugal comprising approximately 35% of their hotel EBITDA in Europe for fiscal year 2024. As the power outages coincide with the peak tourist season, it further adds a pessimistic outlook to the company.
If hotel occupancy in Spain and Portugal decreases by 50% for just a month, it is estimated that MINT could face a financial hit of around €15 million, equating to about 4% of the forecasted net profit for the full-year 2025.
Meanwhile, despite this adverse development, MINT’s valuation remains appealing. The analyst reaffirms the ‘Add’ rating on the company, with a target price set at THB 44 per share.
