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Minor International PCL (SET:MINT), 17.86% stake owned by UBS AG Singapore Branch, 16.53% stack owned by Minor Holding (Thai) Limited, and 7.87% stake owned by Mr. Nithi Osathanugrah, is one of the largest Bangkok-based hospitality and leisure companies in the Asia Pacific Region, operating over 150 hotels and resorts, 1,900 restaurants, and 292 retail trading outlets in Thailand and in 32 markets from Africa to Australia, including South America and Europe.
MINT's main core businesses are hotel and related services operations, property retail business, entertainment operations, spa services, food and beverage operations, real estate for sales, distribution, contract manufacturing and marketing through Minor Corporation PCL, the group's consumer lifestyle company.
The company operates hotels under the brands Anantara, AVANI, PER AQUUM, Oaks, Tivoli, Elewana Collection, Four Seasons, St. Regis, JW Marriott, Marriott, and Radisson Blu brands. It owns The Pizza Company, Thai Express, and Riverside Restaurant franchises, and operates restaurants under the Swensen’s, Sizzler, Dairy Queen, Burger King, and The Coffee Club brands in Thailand and other countries.
In addition to owning and operating three shopping plazas, Royal Garden Pattaya, Turtle Village Shopping Plaza Phuket and Riverside Plaza Bangkok, and seven entertainment outlets in Pattaya, the company is also involved in the residential development business and sells properties in conjunction with the development of some of its hotels.
Minor International PCL said on November 11 that its revenues for the third-quarter 2016, ending September 30, surged 36.63% year-on-year to 13.76 billion baht, beating the 12.98 billion baht consensus estimate of 5 analysts, according to the Financial Times. The company posted its third-quarter 2016 earnings increase of 6.67% year-on-year, or 0.224 baht per share, but missed the 0.31 baht per share consensus estimate of 2 analysts.
The company said in a press release that the revenue from its restaurant business increased by 29% year-on-year, while hotel & mixed-use business, including plaza, entertainment and real estate business, reported revenue growth of 28%, compared to the same period last year. MINT blamed a 2% year-on-year decline in the third-quarter 2016 revenue from retail trading & contract manufacturing business on the slowdown in its key customers.
The company also blamed a lower-than-expected growth rate in net profit on the consolidation of its Tivoli portfolio in Portugal with a higher depreciation and tax rate, the consolidation of Minor DKL and Zambia properties, as well as the lower operating leverage of the Anantara Vacation Club. In February, Minor International acquired 14 Tivoli chain hotels in Portugal and Brazil that belonged to the collapsed Espirito Santo Group, in a deal worth 294 million euros ($320 million).
For 2015, MINT reported a dividend of 0.35 baht a share, which represented a 54.0% increase from 2014. The 19 analysts covering the company expect dividends of 0.44 baht a share for the upcoming fiscal year, representing a year-over-year increase of 26.57%. The next earnings announcement is expected on February 17, 2017. The consensus estimates are EPS of 0.40 baht on revenues of 13.36 billion baht for the fourth-quarter 2016.
From our technical viewpoint, shares of MINT have been trading in a bearish ascending triangle chart pattern since late 2014 and could pull back further to retest the 31 baht level, as investors have raised concerns on the outlooks. According to the Financial Times, the consensus amongst 21 polled investment analysts covering MINT gave the company an Outperform rating, with the median 12-month price target of 42.50 baht per share, as of November 15.
Disclosure: No position and no recommendation. |
