Krungsri Securities (KSS) has provided an update on Minor International Public Company Limited (SET: MINT), highlighting the company’s ongoing capital restructuring efforts aimed at reducing its interest-bearing debt-to-equity ratio, which currently stands at over 2x. MINT’s core business comprises hotel services (76% of total revenue), restaurant services (19%), and mixed-use and other segments (5%).
Notably, over 79% of its hotel business revenue comes from international hotels, with Europe accounting for 65%. More than 58% of restaurant business revenue is generated domestically, with key brands including The Pizza Company, Sizzler, Dairy Queen, and Burger King.
MINT is actively implementing a capital restructuring plan to lower its leverage, seeking to manage financial risk. The company plans to drive growth through an asset-light strategy, focusing on hotel management contracts and selling restaurant franchises, while targeting high single-digit revenue growth and a 15-20% annual profit growth over the next three years.
For 2Q26, profit growth is expected to be modest at 1% year-on-year, reaching THB 3.44 billion, mainly due to the impact of the Middle East conflicts affecting international hotel operations. However, positive factors include robust growth in the European market and a recovery from a low base in Thailand, resulting in steady RevPAR year-on-year. The restaurant business revenue is also forecast to grow slightly by 1% year-on-year.
Looking ahead, core profit in 2026 is projected to increase by 9% year-on-year on the back of moderate revenue growth, a reduction in interest expenses, and a lower tax rate compared to the previous year. For 2027, core profit is expected to rise by 5% year-on-year, primarily driven by the expansion in hotel management contracts.
Krungsri re-initiates coverage on MINT with a ‘Buy’ recommendation and a target price for 2027 of THB 31.50 per share, based on an EV/EBITDA of 9.1x, in line with historical averages. The investment case for MINT is supported by continued growth in the European hotel sector (CAGR 2022-2027 of 4%), hotel operations in more than 60 countries, which diversify operational risk, and projected profit growth of 9% and 5% for 2026 and 2027, respectively.
Additionally, ongoing capital restructuring initiatives—such as the establishment of a REIT valued at THB 30 billion (which may be postponed to next year) and the potential IPO of Minor Food—could present further upside from extraordinary gains.
