CGS International Securities (Thailand) (CGSI) notes in its report that Minor International Public Company Limited (SET: MINT) reported a second-quarter net profit of THB 3,086 million, marking a 9% increase year-on-year and a significant 640% jump from the previous quarter. While the result edged 4% above CGSI’s own projection, it missed the Bloomberg consensus by 8%.
The key surprise in the quarter was a surge in other income, totalling THB 1.4 billion compared to THB 579 million a year earlier and THB 1.7 billion in the previous quarter.
Revenue from hotel operations declined 4% from last year, as revenue per available room (RevPAR) for company-owned hotels slipped 2% year-on-year. The decrease was largely triggered by a 3% fall in average room rates, though this was partially cushioned by a 1 percentage point uptick in occupancy to 72%.
RevPAR for European hotels increased 4% in Euro terms, but this gain was offset by a 4% slide in the euro against the baht. Thai hotel RevPAR dropped 5% from a year ago. Hotel gross margin remained steady at around 40%, matching last year’s levels and improving from 32.7% in the first quarter.
In the food segment, revenues rose by 1% year-on-year. Overall same-store sales (SSS) dipped 1.7% year-on-year, a smaller decline than the previous quarter’s 2.3% decrease. Thailand saw a 2.9% contraction in SSS, greater than the 1.3% dip in the prior period.
China’s SSS also fell by 7.2%, compared to 5.4% seen in the first quarter. Singapore improved, with SSS declining by 3.7%, versus an 8% fall last quarter, while Australia reversed prior weakness to post a 3.2% growth in SSS.
Selling, general and administrative (SG&A) expenses as a share of revenue increased to 18.0%, higher than expected and compared to 16.6% a year ago and 20.3% in the first quarter.
For the first half of 2025, MINT’s net profit accounted for 44% of CGSI’s full-year forecast, prompting the analyst to keep its estimates unchanged.
As a result, the brokerage firm reaffirmed an ‘Add’ rating on MINT, holding the target price at THB 34 per share, based on 8.2 times FY26F EV/EBITDA, which is 1.5 standard deviations below its 10-year average.
