MINT-AWC: Same Crisis, but with Some Differences

Due to the Coronavirus outbreak, the global economy has been left with a chronic wound that likely couldn’t be healed in a short-term, especially the severe scar on the hospitality and tourism industry. For instance, Minor International Public Company Limited (MINT) and Asset World Corp Public Company Limited (AWC) that are currently in difficult situations.  

 

Firstly, both companies’ recurring income is from real estate. According to revenue structure, 60% of MINT’s total revenue for the nine-month period was from hotel business, 34% from restaurant business and 6% from retail trading & contract manufacturing, meanwhile, the majority AWC’s proportion of nine-month period revenue of 46% was from hospitality segment, 38% from office business and 16% from retail. 

 

Secondly, MINT and AWC have been impacted by the Covid-19 pandemic.

 

As of result, the pandemic led MINT to a drastic loss of 5,600 million baht in 3Q20 from a profit of 4,560 million baht a year ago and recorded a loss as high as 15,816 million baht for the nine-month ended Sep 30, 2020 from a profit of 6,929 million baht a year ago.

 

While, AWC as well flipped to record a loss of 620 million baht in 3Q20 from a profit of 185 million baht in 3Q19, bringing a loss for the nine-month to 1,389 million baht from a profit of 517 million baht a year ago.

 

However, there were differences in detail between MINT and AWC, as before the pandemic breakdown, MINT had invested nearly a hundred million baht in acquiring NH Hotel Group, S.A. (NHH), which is listed on the Madrid Stock Exchange, in order to expand its business opportunities abroad, but it comes at the expense of a large amount of debt. 

 

And because of virus spreading, NHH had to temporarily shut down its operations after nation lockdowns were imposed, which directly affected MINT to not be able to recognize the revenue. 

 

Therefore, it was a background of issuing the debenture for refinancing and increasing working capital.

 

The sooner the Coronavirus vaccine is effective, the faster MINT will recover.

 

For AWC as of pior the pandemic, the Company had gained the capital increment in the amount of 48,000 million baht, despite having an effect from the Covid-19 outbreak, it’s expected that AWC will commit to reinvigorating its company performance, and will recover soon.  

 

Moreover, AWC has turned a crisis into an opportunity by acquiring bargain hotels to its portfolio, along with internal restructuring in order to improve operational efficiency post-Covid-19. 

 

Overall, AWC has an advantage over MINT. Even though both companies have the same crisis but different backgrounds.