MINT shares plummeted! An opportunity to accumulate or retreat – The Bangkok Insight

MINT or Minor International Public Company Limited share price movement has dropped sharply. During the period between September 13 and September 16, 2022, the share price was found to have dropped from 30.50 baht, a drop of more than 10% to just 27.50 baht, the lowest price of the year. And from 19-22 September 2022, the closing price is between 27.50 -28.00 baht. The latest on Friday, September 23, 2022, the closing price is 28.25 baht.

The question is, what is happening with MINT because this is already past its worst period of COVID-19 and its opening to tourists is getting better and better. This is considered to have a positive impact on the Company’s hotel, restaurant and lifestyle business brands.

Meanwhile, 2Q22 earnings may continue to turn around with a profit for the first time since COVID-19 at 1,561 million baht as all 3 business units have an improving operating environment. by hotel business Growing up with leisure and business travel The food business and the lifestyle business are gaining momentum. from increased sales activities in Thailand and Australia and the growing number of fashion store customers

The reason why MINT shares have fallen sharply

But the reason why the share price fell originated from world-class financial institutions “Credit Suisse” (Credit Suisse) downgrade investment weight (Underweight) MINT shares are left with a target price of just 25.50 baht from the amount previously given as high as 39 baht, making it a negative psychology for the stock price in the market itself.

The main issue “Credit Suisse” The downgrading of the recommendation is a concern about the slowdown of the European economy. because they face higher living costs due to rising energy prices. As a result, purchasing power declined and tourism spending also slowed. Ready to see that in the next 2-3 quarters Europe is going into recession.

At the same time due to the increase in electricity costs more than double. It will affect the hotel’s business as well. The electricity cost is about 4-5% of the total cost. Currently, MINT has a hotel business in Europe. Accounts for over 70% of the company’s total hotel portfolio.

Anyway Nomura Pattanasin Securities We see that the electricity cost issue will have a small negative impact on MINT shares, but in the short term, we recommend avoiding temporary investment (wait and see) and waiting for the situation in Europe to improve. Therefore, it is an opportunity to buy in the long term. Looking at the current share price, it has already responded to the negative factors quite a bit.

Drill into MINT’s business portfolio

MINT has a core business structure divided into 3 parts: hotels, restaurants and lifestyle brands. The income share is as follows:

Structure of three main businesses @ 300x 100

1. Hotel business accounted for 66% of total revenue.
It comprises 535 hotels with a total of 75,621 rooms under the Anantara, AVANI, TIVOLI, NH Hotel, NH Collection, nhow and OAKS brands.

2. Restaurant business accounting for 30% of the total income.
Includes 2,389 restaurants in 26 countries worldwide under 10 major brands The Pizza Company, Swensens, Sizzler, Dairy Queen, Burger King, The Coffee Club, Thai Express,
Jiang Bian Cheng Wai, Benihana and Bon Chon

3. product distribution business accounting for 4% of total revenue.
It includes 386 retail stores in Thailand under the Anello, Esprit, Bossini, Charles & Keith, Etam, OVS and Redley brands.

for the share of income by region It will come from Thailand at 63%, Australia 12%, China 12% and other countries such as Europe 15%.

In the past, MINT recently announced a three-year investment plan with a budget of 26.4 billion baht, focusing on the asset light strategy, spread across all regions of the world, including Asia, the Middle East, Europe, South America and Oceania. . because there is no need to risk using a high investment Value of the rate of return that will be received. However, in the future when the company has a stronger balance sheet. The situation and the business environment have improved. He may come back to expand more aggressively.

Coming back to the question of whether this situation should accumulate cheap stocks or retreat to see the situation first The answer must be that there is still some disagreement on this issue, but certainly, we can see that investors have already adjusted price target of MINT shares, in line with domestic and international institutional investors who are gradually selling their shares. a big one came out sooner. In contrast to the small investors in the country who use this opportunity to collect MINT shares in a thick portfolio.

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