Minor International Public Company Limited (SET: MINT) reported a second-quarter net profit of THB 3.4 billion, representing a 6% year-on-year increase and marking another record quarter for the company.
The result was in line with analyst consensus and JPMorgan’s expectations, with core revenue rising 3% year-on-year on a constant currency basis to THB 43.4 billion. However, the figure saw a 3% drop after accounting for the impact of the Thai baht’s appreciation against major currencies.
JPMorgan maintains its ‘Overweight’ rating on MINT, setting a target price of THB 35 per share, and highlighted robust performances in the company’s European and Maldives hotel operations, as well as improved balance sheet management. Interest expenses declined by 19% year-on-year, with first-half performance accounting for 38% of JPMorgan’s full-year estimate, tracking within the usual run-rate of 35-48% range.
Similarly, Citi analysts also reiterated a ‘Buy’ rating with a target price of THB 42 per share, noting MINT’s core earnings were in line with expectations, underpinned by lower finance costs. Citi highlighted the strength of MINT’s overseas hotel operations and expects room revenue growth to benefit from extended summer demand in Europe during the third quarter, albeit against tough comparatives from the previous year. The bank is optimistic about a sequential rebound in the Thai hotel segment during the high season in the final quarter of 2025.
Nonetheless, Citi has become more cautious on MINT’s food business amid ongoing weakness in Thailand’s domestic consumption, prompting a downward revision of its earnings estimates by 5-9% over the next three years.
Despite the near-term challenges, the analyst maintains a positive stance on the stock, citing MINT’s compelling valuation at 7 times estimated 2025 EV/EBITDA—well below the sector average of 11 times. In Citi’s view, the company’s diversified hotel portfolio and ongoing efforts to reduce leverage should support more stable earnings growth compared to other Thai hotel operators.
DBS Vickers Securities maintained a ‘Buy’ recommendation with a DCF-based target of THB 36.50 per share, citing the group’s resilience amid global economic challenges, continued recovery prospects, and ongoing hotel renovations.
Meanwhile, CLSA gave MINT an ‘Outperform’ rating with a THB 40 target price, pointing out that while hotel revenue dipped due to negative currency translation, the food business edged up 1%. However, operating profit margin softened by 3 percentage points year-on-year to 13%, reflecting the combined pressures of a stronger Thai baht and higher operating costs.
Analysts broadly agree that Minor International’s earnings growth remains resilient relative to Thai hotel industry peers, supported by a global hotel portfolio and improving financial structure. The company is expected to benefit from seasonally strong quarters ahead and continued focus on cost efficiencies and network diversification.
