Minor International

Minor International Plc (MINT) 

- Ready to go global   

 

MINT focuses on its five-year (2014-2019) business goal of boosting its profit growth by 15-20% a year. Already investing in Africa and Australia, the company has been expanding its own-equity hotel and restaurant businesses through investment in new assets (asset-heavy), hotel management and franchises (asset-light), and acquisition of overseas businesses in order to become a global player and raise its income from the overseas business from 35% in 2014 to almost 50% within 2019. MINT has B50bn investment budget for the five-year (2014-2019) goal, B30-32bn for expansion of its own businesses and another B22-24bn for investment in new projects and acquisitions of new businesses; the budget would come mainly from its own internal cashflow and loans 

 

- Prosperous in 1Q15   

 

MINT's 1Q15 profit is expected to be strong like in 4Q14 since occupancy rate has been high in tourism season and RevPar growth of hotels in Bangkok rose from 33%yoy in December to 50%yoy in January. Income from Time Share has been growing, and at least B120m income from transfer of one unit of St. Regis condominium would be booked. For the food business, overall same store sales improved by 1% (3% in Thailand) in January, and new branches have been opened. Overall, MINT's 1Q15 earnings are projected to grow both yoy and qoq. 

 

- Ten existing shares: one stock dividend, B0.25 cash dividend   

 

Thanks to strong hotel, property, and food businesses, MINT's profit is projected to grow 27% in 2015. MINT announced stock dividend payment of B0.10/share at the ratio of ten existing shares to one stock dividend and cash dividend payment of B0.25/share; XD date is April 17 and dividend will be paid on April 27. Since the amount of shares increases by 10% from the amount prior to the dividend payment announcement, FY2015 fair value (DCF, 9% WACC) is B43 before XD date and decreases to B39.00 after XD date.