I retain my Neutral rating on Thailand-listed hospitality & leisure company Minor International Public Company Limited (OTCPK:MNILY) (OTC:MNILF) (OTCPK:MINOF) [MINT:TB].
This is an update of my prior article on Minor International published on June 15, 2020. Minor International’s share price has declined by -15% from Bt22.80 as of June 12, 2020, to Bt19.30 as of October 2, 2020, since my last update. Minor International trades at 9.5 times historical FY 2019 P/E and 24.7 times consensus forward FY 2022 P/E.
The situation for Minor International remains challenging. Minor International’s 2Q 2020 net loss was no surprise, considering the temporary closure of most of its hotels and food outlets, and the effects of negative operating leverage. A tightening of lock-down and social distancing measures in the markets where it operates in, and a new unexpected round of fund raising remain key downside risks for Minor International. On the flip