Following a recent analyst meeting, InnovestX Research has expressed a “slightly positive” outlook on Minor International (SET: MINT), highlighting a clear strategic roadmap focused on asset-light expansion and significant financial restructuring through a new Real Estate Investment Trust (REIT).
The centerpiece of MINT’s forward-looking plan is the establishment of a REIT, now expected to launch in the second half of 2026. In a strategic move to ensure faster execution and higher asset quality, MINT has adjusted the target asset value to approximately US$1 billion, down from an earlier estimate of US$1.2 billion.
The trust is slated for listing on the Singapore Exchange (SGX), a venue chosen for its superior investor appeal compared to other regional markets. The initial portfolio will comprise 14 properties: 12 located in Europe and 2 in Thailand. Crucially, MINT intends to retain a 49% stake, allowing the company to maintain operational control and continue consolidating the assets’ financial performance.
From a financial engineering perspective, the REIT is expected to offer a yield of over 6%, which is competitively positioned against other Singapore-listed hospitality REITs. Most importantly, this yield sits comfortably below MINT’s own cost of capital, which ranges between 8% and 9%. The proceeds from this vehicle will primarily be used to deleverage the balance sheet, with the company targeting a net debt-to-equity ratio of 0.75–0.85x by 2026.
Beyond the REIT, MINT is committed to an aggressive “Asset-Light” growth strategy through 2028. The company aims to expand its hotel portfolio to 850 properties and its restaurant network to 4,150 outlets. This expansion will focus on management contracts in Asia, the Middle East, and Africa, alongside franchise growth in high-potential markets like India and Indonesia.
Financial targets remain robust, with MINT aiming for high single-digit annual revenue growth and a 15–20% annual increase in profit.
InnovestX maintains an “OUTPERFORM” rating on MINT with a target price of 36 Baht. Analysts suggest that recent share price dips represent a buying opportunity, noting that a share buyback programme running through June 2026 will serve as a key price support. While the first quarter is typically a low season for European tourism—which accounts for 68% of MINT’s revenue—the firm expects a resilient performance that sets a strong foundation for the year ahead.
Additionally, the executive also addressed the media in a separate session about reports of potential spinoff of its food and beverage arm. Based on the current study, a Hong Kong-listed IPO would be favourable, due to the attractiveness of international investors. Preliminary date is set at the end of 2026, though the schedule can be changed depending on the situation.
