MINT Shares Gain 4% on Expected Strong Second-Quarter Earnings

Minor International Pcl. (SET: MINT) stock rose by 4% on Tuesday in anticipation of the company’s 2Q23 earnings report, with market watchers expecting record quarterly results.

The share prices of MINT climbed THB1.25/share, or 4.03%, to THB32.25/share, with a trading value of THB299 million. 

Finansia Syrus Securities raised its forecast for MINT’s normal earnings for 2023-25 by 3-18% to reflect the positive outlook of average daily rate (ADR) of European hotels, and upgraded its price target for MINT shares to THB43.00.  

A healthy normalized profit in 2Q23, with potential upside from predicted new quarterly record high, should be supportive of the share price. 

The brokerage firm forecasts a normalized profit of THB2.9 billion for MINT in 2Q23 on the back of the hotel business unit NH Hotel in Europe, which is forecast to earn EUR79 million, a new record.

Due to seasonal factors, FSS anticipates a 25% YoY increase in RevPAR (NHH SM) for NH Hotel Group in 2Q23, with an expected OCC rate of 72% (vs 69% in 2Q22 and 75% in 2Q19) and average daily room rate (ADR) of EUR154 (vs EUR128 in 2Q22 and EUR110 in 2Q19). 

The brokerage firm predicts that NHH’s revenues will rise by 18% YoY and by 28% compared to pre-COVID levels in 2Q23, while the EBITDA margin will improve to 35.4% (from 34.9% in 2Q22 and 37.0% in 2Q19), resulting in record normal earnings of EUR79 million (from EUR64 million in 2Q22 and EUR53 million in 2Q19) and a profit contribution to MINT of around THB2.8 billion.