Overview of Minor International PCL (MINT)

Minor International PCL (MINT) stands as one of the leading hospitality companies in the Asia-Pacific region. The company operates a diversified portfolio that spans restaurants, residential property development, and retail trading, with a significant international presence. As of now, the firm is poised for growth, supported by strategic initiatives and a robust brand presence.

Stock Highlights:

• Current Share Price: Bt27.00
• Target Price: Bt38.00
• Upside: +40.7%
• Market Cap: Bt153,089.4 million (US\$4,538.8 million)
• 3-Month Average Daily Turnover: US\$13.6 million
• 52-Week High/Low: Bt34.00/Bt22.90
• Major Shareholders: Minor Group & Heinecke Family (34%), Foreign Fund (27%), Local Fund (12%)

Key Strategic Updates

Analyst Meeting and Guidance Update

The recent analyst meeting brought a neutral tone regarding MINT’s revised Q4 2024 results. Despite slight changes to its growth targets, MINT delivered on all its strategic objectives and provided updated guidance for 2025. The company’s 2025 revenue growth target was revised to 6-8% per annum (previously 8-10%), reflecting a maturing European market. However, the profit growth target of 15-20% per annum remains intact.

Promotional Boost from The White Lotus Series

The release of the third season of HBO’s The White Lotus, set in Thailand, has significantly boosted MINT’s hotel bookings. Filmed in four MINT-owned properties in Samui and Phuket, the series has driven strong demand for rooms and restaurants featured on the show. This promotion, which was cost-neutral to MINT, is expected to catalyze booking demand during the low travel seasons in Q2 and Q3 of 2025.

Joint Venture with Royal Holdings in Japan

MINT has entered into a 50/50 joint venture with Royal Holdings, a leading Japanese hotel and restaurant operator, to expand its presence in Japan. The partnership aims to develop at least 10 hotels under the Anantara, Avani, and Tivoli brands in key cities such as Tokyo, Kyoto, and Osaka. This strategic move leverages Royal’s strong local expertise and MINT’s global brand strength.

Financial Performance and Projections

Key Financial Metrics

Deleveraging Strategy

MINT achieved a net interest-bearing debt-to-equity ratio of 0.80x in Q4 2024 and aims to reduce it further to 0.75x by the end of 2025. The company plans to achieve this through debt repayment, asset rotation, and launching a REIT within the year. This focus on deleveraging aligns with its strategy to maximize returns and pursue asset-light expansion projects.

Growth Drivers

• Hotels: Targeting 6-8% YoY growth, driven by Average Daily Rate (ADR) improvements and higher occupancy rates.
• Food Segment: 5-6% YoY growth anticipated, supported by a rebound in Chinese sales and improved Same Store Sales Growth (SSSG).
• Cost Management: Focus on back-office transformation and reduced interest expenses to maximize profitability.

Valuation and Recommendation

UOB Kay Hian maintains a BUY recommendation for MINT, with a target price of Bt38.00. This valuation is based on a 2025 EV/EBITDA multiple of 9.0x, which is lower than the hotel sector’s average of 9-11x. The recommendation is supported by MINT’s strong brand presence, improving debt metrics, and promising overseas expansion initiatives.

Environmental, Social, and Governance (ESG) Initiatives

Environmental

• Commitment to achieving net-zero emissions by 2050.
• Proactive resource conservation, emission reduction, and biodiversity protection strategies.

Social

• Strict adherence to Occupational Health and Safety guidelines.
• Ensuring supplier compliance with chemical handling and workplace safety standards.

Governance

• CEO and senior management KPIs include non-financial metrics like sustainability and internal control compliance.
• Annual guideline reviews to ensure alignment with regulatory requirements and corporate governance best practices.