Krungsri Securities (KSS) reiterated its BUY recommendation on Minor International Public Company Limited (SET: MINT), raising the target price to THB 30.5, following a stronger-than-expected 4Q25 result and a promising outlook for 2026.
MINT’s 4Q25 core profit surged to THB 3.47 billion, up 20% year-on-year and 25% quarter-on-quarter, surpassing both KSS and consensus forecasts by 10%. This impressive performance was attributed to robust revenue growth and improved margins, prompting the brokerage to revise its earnings forecasts upward.
KSS highlighted that MINT’s hotel operations led to a positive surprise, with revenue outperforming estimates. The company reported a 9% YoY and 1% QoQ increase in Revenue Per Available Room (RevPAR) to THB 4,283 per night, reflecting solid demand across all regions. Meanwhile, food revenue increased by 8% yoy, even as same-store sales growth (SSSG) turned negative at -2.6%. The food segment benefitted from outlet expansion to 2,684 branches (+1% yoy) and a recovery momentum in key markets such as China, Australia, and Singapore.
Cost control efforts bore fruit as well, with the EBITDA margin improving to 27.4% in 4Q25, up from 26.2% a year prior, driven by operating leverage from higher revenue and effective expense management. Interest expenses also fell by 11% yoy to THB 2.3 billion.
Despite these solid fundamentals, MINT reported a net profit of THB 2.95 billion, marking a 19% decline YoY but a 16% increase QoQ, as the company booked non-core items, including unrealized derivative losses and impairment charges on hotel assets in Germany. Nevertheless, full-year earnings reached THB 9 billion, up 16% yoy.
Looking ahead, KSS maintains a positive view on MINT’s growth prospects in 2026. Forward bookings remain solid across key regions. European operations are expected to post low- to mid-single-digit YoY growth, supported by resilient business travel. In the Maldives, RevPAR is growing at a double-digit pace, driven by higher occupancy and strategic marketing. Thailand’s hotels, benefitting from post-renovation room rate increases of 20–50%, are expected to continue expanding revenues yoy.
The revised target price is based on a discounted cash flow (DCF) model with assumptions including a 10% weighted average cost of capital (WACC), a 3.5% risk-free rate, an 8% market risk premium, and a beta of 1.2x. At current valuations, MINT trades at 1.2x price-to-book value (PBV) and 15.8x price-to-earnings (PER), roughly 1.5 standard deviations below its historical average.
