Bonchon

Just a few days after Minor International Public Company Limited (MINT) has announced the third-quarter financial statement with a jump of profit by 347%, the company has made another surprise by announcing the acquisition of Chicken Time Co., Ltd. (Chicken Time) who owns and operates the existing Bonchon restaurants in Thailand. MINT invested 2,000 million baht to acquire the rights to operate the well-known mouth-watering fried chicken “Bonchon” restaurant, which currently has 40 branches across the country. The acquisition has proven that MINT is going full speed on its strategy of penetrating F&B business using Merger & Acquisition (M&A) strategy. Up until now, MINT has recorded its profit mainly from hotel businesses such as the sale and leaseback of Tivoli hotels and the acquisition of NH Hotel. Now, it might be the time to just sit and enjoy the profit generated by hotel businesses. The penetration in the F&B business could provide the varieties and well as a diversification for MINT. Currently, the F&B business contributes 28% to MINT’s total revenue. The acquisition of Chicken Time could strengthen its business even further. In 2015, Bonchon had a net profit of 11 million baht from revenue of 585 million baht (18.59 net profit margin). In 2016, Bonchon booked 312 million baht of net profit from a revenue of 984 million baht (31.70% net profit margin). In 2017, it recorded a net profit of 313 million baht from a revenue of 1,131 million baht (27.70 net profit margin). In 2018, Bonchon earned 352 million baht of net profit from a revenue of 1,351 million baht (26.04% net profit margin). The revenue and profit of Bonchon seem…..almost the same as some listed F&B companies in the Stock Exchange of Thailand, and maybe even higher. Although Korean fever is not as hyped as it used to be, Korean foods are still a thing in Thailand. Just like Japanese foods that are still popular among Thais. This reflects that Bonchon could go even further. Bonchon has turned itself from a fried chicken into a golden chicken with just eight years of business in Thailand! More importantly, the popularity of Bonchon will make it easier for MINT’s marketing. Korean food lovers might be seeing a new look or gimmick in Bonchon in the future, especially for MINT’s customers. This is a very interesting move from MINT for organic growth. And this might be the reason why a one or two of mint leaves are used when cooking. It gives an amazing flavor to the food.