MINT, the Misfortunes Never Come Singly

It’s a shame that Minor International Public Company Limited or MINT mightn’t achieve its goal as in recent years MINT has invested in many businesses, including acquired NH Hotel Group, S.A. (NHH), and expected to gain a payback in 2020.

Maybe this year is a misfortuned year for MINT…because it suddenly happened a Covid-19 pandemic.

MINT not only unable to havest its profit, but also losing its revenue.

The covid-19 is threatening hotel businesses across the world, therefore, the hotel chains under MINT enforce to close whether it be in Spain, Germany, Malaysia and Thailand as controlling a virus and lessening cost.     

For the restaurant sector is as well in danger…about 100 restaurant branches in China were shutted down since last February and just reopening recently, while eatery places in Australia and New Zealand announced the closure, too.   

A just a while ago Thai government imposed a preventive measures to shutdown all shopping malls and restaurants, resulting MINT’s retail chains like Sizzler, Swensen, Dairy Queen, Burger King, Thai Express and the Pizza Company are all impacted.  

While lifestyle business such as clothing shops have to close according to government requestment.

Well, every single sectors of MINT are disturbed…!

Leading financial structure of MINT in troblesome…and shrinking of income!!!

And the next step will be a ton of interest from a loans for NH Hotel acquired.

It’s such a one-two punch…

MINT is seem like having a flu without knowing when will be recoverd.

Analysts expected MINT to reduce profitability by 79% to 1,500 million baht due to the impact of the Covid-19 accounting for 61% and from the Financial Reporting Standard No. 16 Leases (TFRS 16) equivalent to 18%, therefore, the estimation of average income per room (RevPar) will decrease by 30% based on a assumption that Covid-19 could be controlled in July.

With concerns over the high debt-to-equity ratio of 2.2 times, if able to erase Covid-19 by the end of this year, MINT would overcome this crisis.

MINT still has cash in hand at 13.3 billion baht, which is higher than the debt at 9,700 million baht.

So, still recommend to “buy” with a target price of 30 baht.

But … during an unstable situation where the market doesn’t know whether direction, keeping cash is probably the best decision.

Or whoever considers it as the good time to collect less value stock…it’s up to you.