Minor International Public Company Limited (SET: MINT) looks poised for continued earnings growth, according to a recent research note from Thanachart Securities, which has reiterated its ‘Buy’ recommendation and raised the stock’s 12-month target price to THB 37.00 per share.
Thanachart Securities has upgraded its forecast for MINT’s net profit by 5-8% for the years 2025-2027, underpinned by expectations that a global trend of falling interest rates and reduced corporate income tax rates will lower MINT’s financing costs. The company stands to benefit particularly from the decline in interest rates given that approximately 48% of its THB 99 billion interest-bearing debt as of 2Q25 carries floating rates. As a result, interest expense is predicted to fall from a peak of THB 11.8 billion in 2024 to THB 9.6 billion in 2025, with further declines to THB 8.7 billion in 2026 and THB 8.2 billion in 2027.
Furthermore, MINT’s net debt-to-equity ratio is set to gradually decline from 0.8x in 2024 to 0.65x by 2027, reflecting ongoing debt repayment and asset rotation strategies, as well as an asset-light expansion focus.
Key to MINT’s growth strategy is a vigorous expansion of both its hotel and food businesses. By 2027, the company expects to add 46,289 new hotel keys—a 57% increase from 2Q25—and launch 1,455 additional food outlets, representing a 55% rise. Notably, a majority of these new hotels (79%) and food outlets (72%) will follow management contract and franchising models, reducing capital intensity. Expansion will prioritize strategic markets such as China, Japan, India, and Indonesia, utilizing well-known brands like Anantara, Avani, Dairy Queen, Bonchon, and GAGA.
Despite global economic pressures and subdued tourism in Thailand, MINT has demonstrated pricing resilience. In 1H25, average room rates (ARR) increased 3% year-on-year across its Europe & Americas unit and jumped 14% in Thailand, although rates softened in Australia and the Maldives. Looking ahead, Thanachart forecasts 1-3% ARR growth per year and 3-4% annual growth in revenue per available room (RevPAR) over 2025-27.
Priced at a forward PE ratio of 15.7x for 2026, MINT is trading below the regional peer group (16-31x), presenting what analysts see as an attractive valuation given an expected 14% compound annual EPS growth over the next three years.
