Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

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Thai Equity - Bottom-up - Equities

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Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

<ul>
<li>MINT has been underperforming Thai listed hotel peers by around30%YTD to trade at 34xPE’23E,or 30%discount to the sector as it has substantially absorbed overhang concerns over recession fear in Europe </li>
<li>Two consecutive quarters net profit should be seen. We expect the company to book core profit at Bt1.5bn (+25%QoQ, turnaround from Bt2.4bn loss in 3Q21) supported by all-time high level </li>
<li>Food revenue is expected to increase to Bt6.1bn (+1%QoQ +29%YoY) as we anticipate continuing solid SSSG at 20.3% compared with 4.2% and -7.2% in 3Q21 and 2Q22 respectively</li>
</ul>


MINT has been underperforming Thai listed hotel peers by around30%YTD to trade at 34xPE’23E,or 30%discount to the sector as it has substantially absorbed overhang concerns over recession fear in Europe 
Two consecutive quarters net profit should be seen. We expect the company to book core profit at Bt1.5bn (+25%QoQ, turnaround from Bt2.4bn loss in 3Q21) supported by all-time high level 
Food revenue is expected to increase to Bt6.1bn (+1%QoQ +29%YoY) as we anticipate continuing solid SSSG at 20.3% compared with 4.2% and -7.2% in 3Q21 and 2Q22 respectively


MINT : Limited Downside from Recession in Europe

<ul>
<li>We believe a 17%QTD correction in stock price create opportunity for investor to accumulate as it has substantially priced in potential impact from surging utility cost as a consequence </li>
<li>Increasing room rate should cover up the impact According to the management, utility cost accounted for around 5% of the company’s operating expense for hospitality business.</li>
<li>Expect 2H22 hotel operation to improve gradually The company’s hospitality business should continue to gain benefit from pent-up demand in Europe in 3Q22 before entering winter season in 4Q22.</li>
</ul>


We believe a 17%QTD correction in stock price create opportunity for investor to accumulate as it has substantially priced in potential impact from surging utility cost as a consequence 
Increasing room rate should cover up the impact According to the management, utility cost accounted for around 5% of the company’s operating expense for hospitality business.
Expect 2H22 hotel operation to improve gradually The company’s hospitality business should continue to gain benefit from pent-up demand in Europe in 3Q22 before entering winter season in 4Q22.


MINT : Concern over Surging Utility Price in EU Has Priced In’’

<ul>
<li>The company post net profit for the first time since pandemic began at Bt1.6bn in 2Q22 (vs. 3.8bn loss in 1Q22).The result came out above our expectations. Impressive result supported </li>
<li>Impressive recovery in hospitality business. Hotel revenue hit 12-quarter high at Bt25bn,thanks to NH Hotel Group (NHH) performance that posted record high of revenue at Є506m in 2Q22after its occupancy </li>
<li>Food revenue was at Bt6.3bn (+21%YoY-1%QoQ) backed by continuing solid SSSG at 7.8% compared with 4.2% and 6.1% in 2Q21 and 1Q22 respectively. This thanks to an increase in traffic </li>
</ul>


The company post net profit for the first time since pandemic began at Bt1.6bn in 2Q22 (vs. 3.8bn loss in 1Q22).The result came out above our expectations. Impressive result supported 
Impressive recovery in hospitality business. Hotel revenue hit 12-quarter high at Bt25bn,thanks to NH Hotel Group (NHH) performance that posted record high of revenue at Є506m in 2Q22after its occupancy 
Food revenue was at Bt6.3bn (+21%YoY-1%QoQ) backed by continuing solid SSSG at 7.8% compared with 4.2% and 6.1% in 2Q21 and 1Q22 respectively. This thanks to an increase in traffic 


MINT : Continue to Deliver Solid Earnings in 2H22

<ul>
<li>Maintain BUY recommendation for MINT while roll over target price to Bt41.0 (Previous TP:Bt38.0)We expect the company to post core profit for the first time since pandemic began at Bt1.0bn</li>
<li>Impressive recovery in hospitality business.We expect hotel revenue to hit 12 quarter high at Bt23bn,thanks to NH Hotel Group (NHH) where its occupancy rate is expected to surge to 70%</li>
<li>Food revenue is expected to be at Bt5.7bn (+16%YoY-6%QoQ) as we anticipate continuing solid SSSG at 7.3% compared with 4.2% and 6.1% in 2Q21 and 1Q22 respectively. </li>
</ul>


Maintain BUY recommendation for MINT while roll over target price to Bt41.0 (Previous TP:Bt38.0)We expect the company to post core profit for the first time since pandemic began at Bt1.0bn
Impressive recovery in hospitality business.We expect hotel revenue to hit 12 quarter high at Bt23bn,thanks to NH Hotel Group (NHH) where its occupancy rate is expected to surge to 70%
Food revenue is expected to be at Bt5.7bn (+16%YoY-6%QoQ) as we anticipate continuing solid SSSG at 7.3% compared with 4.2% and 6.1% in 2Q21 and 1Q22 respectively. 


MINT : Expect to Post Profit for the First Time Since Pandemic Began

<ul>
<li>Analyst meeting came out with a positive tone regarding 2022 outlook.We maintain BUY rating with a target price of Bt38.0,based DCF method (WACC of 8% and terminal growth of 2%)</li>
<li>Positive 2022outlook as we expect the hotel industry to make a strong come back in 2022due to vaccine roll outs and easing of international travel restrictions,making the earnings positive for2022</li>
<li>Since 1Q is typically the lowest travel seasonality,we expect the revenue from hotels to grow for next 3 quarters (around 50% by 4Q22), contributing around 75% of the total revenue.</li>
</ul>


Analyst meeting came out with a positive tone regarding 2022 outlook.We maintain BUY rating with a target price of Bt38.0,based DCF method (WACC of 8% and terminal growth of 2%)
Positive 2022outlook as we expect the hotel industry to make a strong come back in 2022due to vaccine roll outs and easing of international travel restrictions,making the earnings positive for2022
Since 1Q is typically the lowest travel seasonality,we expect the revenue from hotels to grow for next 3 quarters (around 50% by 4Q22), contributing around 75% of the total revenue.


MINT: Hotel Segment’s Recovery Will Boost 2022 Growth

Thailand

Minor International Public Company Limited is a prominent hospitality, restaurant, and lifestyle company that operates hotels, resorts, and serviced suites under various brands, including Anantara, Avani, Oaks, and NH Hotels. The company also owns and operates numerous restaurant brands such as The Pizza Company, The Coffee Club, and Burger King, alongside distributing international lifestyle brands. Minor International was founded in 1978 and is headquartered in Bangkok, Thailand.

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Minor International (MINT TB)

MINT : Limited Downside from Recession in Europe

MINT has been underperforming Thai listed hotel peers by around 30%YTD to trade at 34xPE’23E, or 30% discount to the sector as it has substantially...

Pi Securities PCL, Thailand

MINT : Concern over Surging Utility Price in EU Has Priced In’’

We believe a 17%QTDcorrection in stock price create opportunity for investor to accumulate as it has substantially priced in potential impact from...

Pi Securities PCL, Thailand

MINT : Continue to Deliver Solid Earnings in 2H22

The company post net profit for the first time since pandemic began at Bt1.6bn in 2Q22 (vs. 3.8bn loss in 1Q22). The result came out above our...

Pi Securities PCL, Thailand

MINT : Expect to Post Profit for the First Time Since Pandemic Began

Maintain BUY recommendation for MINT while roll over target price to Bt41.0 (Previous TP: Bt38.0) We expect the company to post core profit for the...

Pi Securities PCL, Thailand

MINT: Hotel Segment’s Recovery Will Boost 2022 Growth

Analyst meeting came out with a positive tone regarding 2022 outlook. We maintain BUY rating with a target price of Bt38.0, based DCF method (WACC...

Pi Securities PCL, Thailand

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