Company Coverage
Minor International (MINT TB): 2Q26: Reported Weak Core Profit Growth In Line
HOLD (Maintained)
Current price:
Target price:
Upside:
Bt23.20
Bt24.00
+3.4%
Analyst
Analyst
Nonpawit Vathanadachakul
Highlights
- MINT reported a core profit of Bt3.51b (+3.0% yoy, +2,322.8% qoq), showing a weak yoy growth.
- MINT postponed its REIT launch, which will hamper the deleveraging plan and result in a higher interest burden.
- We expect MINT not to be able to achieve its growth target due to the weak performance in 1H26 and the asset-light expansion will not be able to offset the interest burden. Maintain HOLD with a target price of Bt24.00.
Analysis
Reported weak yoy core profit growth in 2Q26. Minor International (MINT) MINT reported a net profit of Bt3.31b (+7.2% yoy). Excluding extra items such as foreign exchange losses and derivatives losses, its 2Q26 core profit stands at Bt3.51b (+3.0% yoy), in line with our and consensus forecasts. The overall RevPar from MINT’s hotels came in flat yoy at +1%, due to the war. Hotels in Europe, Thailand, Maldives, and Australia showed RevPar of +4%, +3%, -6%, and -3% yoy in local currency. Interest expense rose 6% yoy and 16% qoq due to the increasing syndicated loan amount from perpetual conversion. EBITDA margins declined 1.5ppt yoy due to cost pressure, as the food business saw packaging and logistics costs rising. 1H26 net profit accounts for 41% of our 2026 earnings forecast.
REIT postponement adds to interest burden. MINT has decided to postpone its REIT launch, which was initially planned for 2H26, due to weak demand and unfavourable market conditions. We view the delay as a significant negative for MINT’s earnings outlook, as the company will be unable to meaningfully reduce its leverage in the near term. MINT’s net IBD/E increased from 0.88x at end-1Q26 to 1.10x in 2Q26 following the conversion of the perpetual bond into a long-term loan of slightly over Bt10b. As a result, MINT will incur additional interest expenses of around Bt300m annually, creating a meaningful headwind to earnings growth. The REIT remains in MINT’s pipeline and could be revisited once market conditions improve. In the meantime, MINT will focus on its food IPO and asset rotation initiatives, although the food IPO remains uncertain and is not included in our assumptions.
2026 growth guidance is unlikely to be achieved. Management previously maintained its three-year guidance, targeting high single-digit annual revenue growth and profit growth of 15-20% p.a.. So far, the 1H26 core earnings have only shown a 5.7% yoy growth, which is way below the target. Given the increasing interest burden from the converted perpetuals, we believe that the target of 15-20% core profit growth is unlikely to be achieved this year. Meanwhile for Sep 27, there will be another tranche of perpetuals to be converted into loans and another in Feb 28. We think that this increasing interest burden could be a long-term overhang if the REIT cannot be launched.
MINT still focuses on asset-light expansion. Given its relatively high leverage, MINT is prioritising asset-light hotel growth to ease balance sheet pressure. While revenue contribution per contract is relatively small, margins are attractive as the model requires limited capital investment, operating expenses, and ramp-up costs. As of 1Q26, MINT operated 643 hotels with 240 projects in the pipeline, targeting an asset-light share of 51% of total rooms by 2028, up from 34% currently. MINT aims to sign over 50 hotel contracts in 2026, with 30 targeted in 1H26. In the food business, MINT is also accelerating franchising to raise the franchise mix to 56% of total outlets, while expanding in high-growth markets such as Indonesia and India. However, we think that the asset-light strategy will not be able to offset the increasing interest burden.
Highlights
- MINT reported a core profit of Bt3.51b (+3.0% yoy, +2,322.8% qoq), showing a weak yoy growth.
- MINT postponed its REIT launch, which will hamper the deleveraging plan and result in a higher interest burden.
- We expect MINT not to be able to achieve its growth target due to the weak performance in 1H26 and the asset-light expansion will not be able to offset the interest burden. Maintain HOLD with a target price of Bt24.00.
Analysis
Reported weak yoy core profit growth in 2Q26. Minor International (MINT) MINT reported a net profit of Bt3.31b (+7.2% yoy). Excluding extra items such as foreign exchange losses and derivatives losses, its 2Q26 core profit stands at Bt3.51b (+3.0% yoy), in line with our and consensus forecasts. The overall RevPar from MINT’s hotels came in flat yoy at +1%, due to the war. Hotels in Europe, Thailand, Maldives, and Australia showed RevPar of +4%, +3%, -6%, and -3% yoy in local currency. Interest expense rose 6% yoy and 16% qoq due to the increasing syndicated loan amount from perpetual conversion. EBITDA margins declined 1.5ppt yoy due to cost pressure, as the food business saw packaging and logistics costs rising. 1H26 net profit accounts for 41% of our 2026 earnings forecast.
REIT postponement adds to interest burden. MINT has decided to postpone its REIT launch, which was initially planned for 2H26, due to weak demand and unfavourable market conditions. We view the delay as a significant negative for MINT’s earnings outlook, as the company will be unable to meaningfully reduce its leverage in the near term. MINT’s net IBD/E increased from 0.88x at end-1Q26 to 1.10x in 2Q26 following the conversion of the perpetual bond into a long-term loan of slightly over Bt10b. As a result, MINT will incur additional interest expenses of around Bt300m annually, creating a meaningful headwind to earnings growth. The REIT remains in MINT’s pipeline and could be revisited once market conditions improve. In the meantime, MINT will focus on its food IPO and asset rotation initiatives, although the food IPO remains uncertain and is not included in our assumptions.
2026 growth guidance is unlikely to be achieved. Management previously maintained its three-year guidance, targeting high single-digit annual revenue growth and profit growth of 15-20% p.a.. So far, the 1H26 core earnings have only shown a 5.7% yoy growth, which is way below the target. Given the increasing interest burden from the converted perpetuals, we believe that the target of 15-20% core profit growth is unlikely to be achieved this year. Meanwhile for Sep 27, there will be another tranche of perpetuals to be converted into loans and another in Feb 28. We think that this increasing interest burden could be a long-term overhang if the REIT cannot be launched.
MINT still focuses on asset-light expansion. Given its relatively high leverage, MINT is prioritising asset-light hotel growth to ease balance sheet pressure. While revenue contribution per contract is relatively small, margins are attractive as the model requires limited capital investment, operating expenses, and ramp-up costs. As of 1Q26, MINT operated 643 hotels with 240 projects in the pipeline, targeting an asset-light share of 51% of total rooms by 2028, up from 34% currently. MINT aims to sign over 50 hotel contracts in 2026, with 30 targeted in 1H26. In the food business, MINT is also accelerating franchising to raise the franchise mix to 56% of total outlets, while expanding in high-growth markets such as Indonesia and India. However, we think that the asset-light strategy will not be able to offset the increasing interest burden.
HOLD (Maintained)
Current price:
Target price:
Upside:
Bt23.20
Bt24.00
+3.4%
Analyst
Analyst
Nonpawit Vathanadachakul
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