Minor International is expected to see its core profit reaching a new high in the second quarter during the peak season in Europe, overshadowing an estimate for a loss in the first quarter due to a low season.
Due to its high contribution from hotel operation in Europe, Minor International Public Company Limited (SET: MINT) usually sees a drop in earnings during winter, which is generally considered a low season in Europe as days are shorter, and some attractions may reduce opening hours or be closed.
Analysts expected MINT to record a core loss of 100 million baht in the first quarter, showing a significant improvement from a core loss of 650 million baht in 1Q23, as Non-NH Hotel core profit such as Thai hotel and F&B operations to offset a loss from European hotels.
FSS International Investment Advisory (FSSIA) expected MINT to core profit to hit a new record high in 2Q24, led by 5-10% y-y higher RevPAR from NH Hotel due to a high tourism season and major events in Europe, including UEFA Euro 2024 in Germany in June and the Taylor Swift Europe tour from May to July. Meanwhile, Thai hotels should see continued growth momentum, with a RevPAR growth of up to 10-20% y-y in 2Q24.
Krungsri Securities (KSS) also pointed out that the upcoming Paris 2024 Olympic should give MINT a revenue contribution as well.
Brokers were expecting MINT to record around 8.3-8.7 billion baht in core profit this year, representing 16-22% core growth, driven by RevPAR growth and improved EBITDA margin.
FSSIA stated that MINT is trading at an attractive valuation of 22x 2024E P/E, compared to its 5-year average of 25x, Thai hotel peers of 50x and global peers of 28x. The firm gave a BUY recommendation with a target price at THB44.00 per share. Meanwhile, KSS also gave the same recommendation with a slightly lower target price at THB42.00 per share.
