MINT’s two curved budget aims to grow the group’s garden …Is the signal bought or not?

share MINT Back on investor radar again After the broker expects Q2/23 budget to grow against the group, driven by NH Hotel, enters the high season, but hotels in Thailand enter the low season. In addition, operating costs – interest expenses began to decrease, pushing profits in 2013 back to pre-Covid-19 levels, plus the valuation is still quite cheap!

*** Back on the radar, receiving budget Q2/23, aiming to grow against the group

Shares of Minor International Public Company Limited (MINT) returned to investor interest again. After most market analysts estimate that The 2Q2023 operating results tend to grow in the same direction as stocks in the same group. that was expected to perform during that period tends to slow down temporarily

*** Open the reason why the Q2/23 budget is expected to grow against the group

Analysis of Securities Company (SEC) Yuanta (Thailand) estimates that the operating results of the 2nd quarter of 2023 MINT There is a tendency to grow from the previous year (YoY) and the previous quarter (QoQ), opposite stocks in the same industry. It was expected that performance during the said period would temporarily slow down. As hotels in Thailand enter the low season

however MINT are different from stocks in the group due to the diversification of investment portfolios to Europe during which The performance of NH Hotel (hotels in Europe) enters the high season of operations. Encourage the number of occupancy to increase significantly since last April.

by average revenue per room (RevPar) of the hotel MINT self-administered in a month Last April, it grew 43% compared to the previous year. And grew 35% compared to the period before the outbreak of COVID-19 after NH Hotel entered the high season, causing the occupancy rate (Occ. Rate) to move up to 70% compared to the previous quarter at the level 65%

This is in line with Krungsri Securities, which has assessed that 2nd quarter net profit of MINT has a tendency to grow both compared to the previous year and the previous quarter There is a supporting factor for hotels in Europe entering the high season. And hotels in Thailand still have stable performance at a high level, together with the restaurant business. There is a tendency to grow both compared to the previous year. and the previous quarter after restaurant recovery in China

The sales in the restaurant business of MINT in April It hit an All Time High with a 12% same store sales growth (SSSG) from the previous year, driven by the recovery of restaurants in China. with the growth rate of SSSG at the level of 40%

*** Operating costs – Interest expenses have started to decrease.

Trinity Securities estimates that the cost of food raw materials in Q2/2023 is still likely to be at a similar level to the previous quarter. but will begin to decline significantly in the second half of the year 2023 (H2/23), while the cost of electricity in Europe has started to decrease. Since the 2nd quarter of 2023, the profitability of MINT will gradually recover

While Innovest X Securities added that at the end of the 1st quarter of 2023, the way MINT Interest expenses were at 2.4 billion baht, down 3% from the previous quarter. After the debt status decreased, the interest-bearing debt to equity ratio was 1.18 times, down from 1.43 times at the end of 2022, due to a stronger capital base. as a result of improved performance and the issuance of new capital debentures

*** Guru expects the 2013 budget to return to pre-Covid levels.

Trinity Securities assessed that the performance of the year 2023 of MINT There is a tendency to recover back to the period before the outbreak of COVID-19. Net profit is estimated at 5.58 billion baht, growing 29% y-o-y, driven by the performance of all businesses. And all countries recovered quickly.

While there are 2 other analysts estimating net profit for the year 23 of MINT as follows

*** The broker points out that Valuation is still interesting to collect.

Krungsri Phatthanasin Securities stated that the value (Valuation) of shares MINT that are trading at present, still interesting to collect, we choose MINT It is a top pick in the tourism sector. Reflecting on net profit in 2013-2015, it tends to grow continuously every year, averaging 36% per year. In addition, stocks still trade P/E in 2013-2014 at 29 times and 21 times cheaper than the average of Thai hotel groups that trade P/E. E, 2013 – 2017, about 38 times and 30 times, respectively.

Asia Plus Securities added that for stocks MINT We recommend Outperform as we believe its performance has bottomed out in 1Q23 and we expect its 2Q23 performance to outperform peers facing the low season. of hotels in Thailand

***Most still recommend “buy”

According to opinion polls, most analysts still recommend “buy” as they see that the 2Q23 performance of MINT There is a remarkable growth trend, in contrast to stocks in the same group that are expected to slow down temporarily, and the valuation of stocks currently traded is still relatively cheap compared to competitors.

If referring to the broker’s information It looks like investing in stocks. MINT This time will be more interesting. This is because the 2Q2023 performance is likely to start to recover to pre-COVID-19 levels. MINT It is likely to continue to grow until at least 2025 according to analysts’ forecasts.