share MINUTES Back on investors’ radar again After the broker expects the Q2/23 budget to grow against the group, driven by NH Hotel, entering the high season, but hotels in Thailand going into the low season. In addition, operating costs – interest costs began to fall, pushing profits in 2013 back to pre-Covid-19 levels, and the valuation is still quite cheap!
*** Back on the radar, receiving Q2/23 budget, aiming to grow against the group
Shares of Minor International Public Company Limited (MINUTES) returned to investor interest again. After most market analysts estimate that 2Q2023 operating results tend to grow in the same direction as stocks in the same group. which he was expected to perform during that period tended to slow down temporarily
*** Open the reason why the Q2/23 budget is expected to grow against the group
Analysis of Securities Company (SEC) Yuanta (Thailand) estimates that the operating results of the 2nd quarter of 2023 MINUTES There is a trend to grow from the previous year (YoY) and the previous quarter (QoQ), opposite stocks in the same industry. It was expected that performance during the period in question would slow down temporarily. As hotels in Thailand enter the low season
anyway MINUTES unlike stocks in the group due to the diversification of investment portfolios to Europe during which NH Hotel performance (hotels in Europe) reaches the high season of operations. Encourage the number of tenures to increase significantly since last April.
by the hotel’s average revenue per room (RevPar). MINUTES self-administration in last April, grew 43% compared to the previous year. And it grew by 35% compared to the period before the outbreak of COVID-19 after NH Hotel entered the high season, causing the occupancy rate (Occ. Rate) to move up to 70% compared to the previous quarter at the 65% level
This is in accordance with Krungsri Securities, which has assessed that Net profit quarter 2 of MINUTES tends to grow both compared to the previous year and the previous quarter There is a supporting factor for hotels in Europe entering the peak season. And hotels in Thailand still have a stable performance at a high level, along with the restaurant business. There is a tendency to grow both compared to the previous year. and the previous quarter after a restaurant recovery in China
The sale in the restaurant business of MINUTES in April It reached an all-time high with 12% same-store sales growth (SSSG) from the previous year, driven by a restaurant recovery in China. with SSSG growth rate at a level of 40%
*** Operating costs – Interest costs have started to fall.
Trinity Securities estimates that the cost of food raw materials in Q2/2023 is still likely to be at a similar level to the previous quarter. but it will begin to decrease significantly in the second half of the year 2023 (H2/23), while the cost of electricity in Europe has begun to decrease. Since the 2nd quarter of 2023, there is profitability MINUTES it will gradually improve
While Innovest X Securities, at the end of the 1st quarter of 2023, added the road MINUTES Interest expenses were 2.4 billion baht, down 3% from the previous quarter. After the debt status was downgraded, the interest-bearing debt-to-equity ratio was 1.18 times, down from 1.43 times at the end of 2022, due to a stronger capital base. as a result of improved performance and the issuance of new capital debentures
*** Guru expects the 2013 budget to return to pre-Covid levels.
Trinity Securities assessed that the performance of the year 2023 of MINUTES There is a tendency to recover back to the period before the outbreak of COVID-19. Net profit is estimated at 5.58 billion baht, growing 29% yoy, driven by the performance of all businesses. And all countries recovered quickly.
While 2 other analysts estimate net profit for the year 23 of MINUTES as follows
| Guarantees | Net profit in 2023 (million baht) | %chg YoY |
| Yuanta | 6,443 | 50 |
| Krungsri | 5,865 | 37 |
*** The broker notes that Valuation is still interesting to collect.
Krungsri Phatthanasin Securities said that the value (Valuation) of shares MINUTES currently trading, still interesting to collect, we choose MINUTES It is a first class choice in the tourism sector. Reflecting on net profit in 2013-2015, it tends to grow continuously every year, averaging 36% per year. In addition, stocks still trade P/E in 2013-2014 at 29 times and 21 times cheaper than the average of Thai hotel groups. which trades P/E. E, 2013 – 2017, approximately 38 times and 30 times, respectively.
Asia Plus Securities added that for stocks MINUTES We recommend Outperform as we believe its performance bottomed out in 1Q23 and we expect its 2Q23 performance to outperform its Thai hotel offseason peers.
***Most still recommend “buy”
According to polls, most analysts still recommend “buy” as they see the 2Q23 performance of MINUTES There is a remarkable growth trend, unlike stocks in the same group which are expected to slow down temporarily, and the valuation of the stocks currently traded is still relatively cheap compared to competitors.
| Guarantees | advice | reasonable price (Baht) |
| Yuanta | buy | 43.50 |
| Krungsri | buy | 42.00 |
| Innovative | buy | 42.00 |
| pie | buy | 42.00 |
| Asia Plus | buy | 38.00 |
| average price | 41.50 | |
