On Friday at 2:28 PM (Bangkok time), the share price of Minor International Public Company Limited (SET: MINT) rose by 1.89% or THB 0.50 to THB 27.00, with a trading value of THB 282.86 million.
Maybank Securities noted in its report that MINT reported a net profit of THB 3.6 billion for the fourth quarter of 2024. When excluding factors such as foreign exchange and hedging, the company’s core profit stands at THB 2.9 billion, reflecting a year-on-year increase of 15% and an 8% rise quarter-on-quarter. These results align with forecasts by the analyst and market expectations.
The quarterly profit growth was primarily driven by peak season performance for hotels in Thailand and the Maldives, with anticipated revenue per available room (RevPAR) increasing by 44% quarter-on-quarter in Thailand and 80% year-on-year in the Maldives. A reduction in interest expense by 18% quarter-on-quarter also contributed, mitigating the effect of the decline in RevPAR for NH Hotel Group (NHH), which exhibited a decrease of 9% on a quarterly basis.
Year-over-year earnings growth was bolstered by strong RevPAR in Europe, up by 7%, and a 15% increase in Thailand. Further support came from a 13% year-on-year decline in interest expenses. These factors helped offset rising operating costs, especially in European markets.
MINT’s food segment showed resilience as same-store sales growth (SSSG) improved to -0.5%, compared to -2.7% in the previous quarter and -2.2% in the same quarter last year. Food revenue grew by 3% year-on-year, reaching THB 8.0 billion, and the EBITDA margin for the segment improved to 22.6%, up from 21.5% in 4Q23, driven by effective cost management.
For the full year 2024, MINT recorded a net profit of THB 7.8 billion. Excluding extraordinary items, core profit reached THB 8.4 billion, marking an 18% increase year-on-year.
Looking ahead, Maybank Securities forecasts a potential drop in earnings for the first quarter of 2025 due to the low season in Europe, despite high seasons in Thailand and the Maldives.
However, the losses experienced in the first quarter of 2024 could turn into profitability in 2025, supported by forward bookings showing hotel revenue growth of 5-7% in Europe and over 10% in Thailand. Additionally, significant loan repayments in the fourth quarter of 2024 could lead to further interest expense savings.
As a result, the analyst gives a ‘BUY’ recommendation for MINT, setting a target price at THB 36 per share.
