Kasikorn Securities (KS) reported that Minor International Public Company Limited (SET: MINT) recorded a normal profit of THB 2.6 billion in 3Q24, with an 18% drop from the previous quarter but a 16% rise from a year ago, aligning with KS’s expectations and surpassing market estimates by 4%. The decline in profit was due to seasonal factors, while the yearly increase was driven by strong hotel performance in Europe and Latin America (NHH). MINT faced special expenses of THB 2.5 billion, primarily from currency losses.
Quarterly hotel revenue was THB 34.1 billion, down 7% from the previous quarter but up 6% year-on-year. EBITDA reached THB 10.2 billion, decreasing by 10% from Q2 but increasing by 10% from the same period last year, with a 30% EBITDA margin.
RevPar for hotels, including both company-owned and leased, reached THB 4,272 million. This reflected a 9% decrease from the previous quarter but a 9% increase from the same period last year. It also entailed an ADR of THB 6,007 per night, down by 9% from the previous quarter but up by 7% year-on-year, with an OCR of 71%, remaining stable compared to the last quarter and increasing by 1 percentage point year-on-year.
The food business generated THB 8 billion in revenue, decreasing by 2% from the previous quarter but increasing by 3% year-on-year. EBITDA for this segment was THB 1.8 billion, falling by 4% from the previous quarter but rising by 3% year-on-year, with an EBITDA margin of 22.7%. SSSG declined by 2.7% year-on-year, while TSS increased by 0.4% compared to the prior year.
KS reiterates a ‘BUY’ rating for MINT, setting a target price of THB 43.02 per share. The analyst foresees robust performance in MINT’s hotel sector in the fourth quarter of 2024, with RevPar projected to increase by 7-9% year-on-year. However, there is a downside risk concerning the earnings forecast, given that the company’s normal profit in the first nine months of 2024 only represents 64% of KS’s 2024 full-year forecast.
The analyst also projects MINT’s core profit for the year 2024-2026 of THB 8.58 billion, THB 9.77 billion, and THB 11.53 billion, respectively.
In addition, Kiatnakin Phatra Securities (KKPS) pointed out a similar report on MINT, as the company’s performance in 3Q24 was also in line with the analyst’s projection.
The total revenue showed a 4% year-on-year increase, with hotel & mixed-use revenue rising by 6% year-on-year and restaurant revenue up by 3% year-on-year. Although the hotel revenue grew by 9% year-on-year, it fell short of expectations due to weaker performance in the Maldives, offsetting the strong growth in Europe (RevPAR +9% YoY) and Thailand (RevPAR +12% YoY).
The analyst maintains a ‘BUY’ recommendation for MINT, with a target price of THB 40 per share. Additionally, the forecast includes an estimated core profit of THB 8.5 billion, THB 9.79 billion, and THB 11.35 billion for the years 2024, 2025, and 2026, respectively.
