Minor International Public Company Limited

Core revenue was THB 82.8 billion in the first half, up 3% year over year. Core net profit was THB 3.7 billion, up 6% year over year, and core net profit margin improved by 10 basis points. Minor Hotels’ core hotel revenue rose 3% and core profit rose 7% to about THB 2.4 billion; Minor Food core revenue rose 4% and core profit rose 3% to THB 1.3 billion. Regional RevPAR in Europe and the Americas increased 5% year over year in euro terms, Thailand RevPAR rose 11%, the Maldives rose 4%, and Australia was down 1%. For the full year, management reiterated more than 50 hotel signings, CapEx of about THB 15 billion to THB 16 billion, and said 2026 performance should remain above prior-year levels; they also said they expect margin expansion from 2027 onward, though they did not give a precise margin target in the prepared remarks. On leverage, net interest-bearing debt to equity was 1.1x and net debt to EBITDA was 4.72x at quarter-end, while average cost of debt was about 4.1%, down from 4.4% a year earlier.

The CEO framed the quarter around execution on an asset-light strategy, brand conversions, and expansion into new markets rather than just headline earnings. He emphasized that the group opened properties in Thailand, Italy, Australia, Zambia, Laos and Turkey, and said the company is using a broader brand architecture to give owners more conversion options. His tone was confident and upbeat, repeatedly saying the company is ahead of earlier promises on contract signings and that 2026 should remain above prior-year levels despite geopolitical uncertainty.

The CFO commentary focused on margin protection, cost control and balance sheet management. He said labor is about 28% of revenue and should see mid-single-digit inflation, while direct costs are about 24% of revenue and are expected to rise only low single digits; in Europe, more than 90% to 100% of energy needs have been hedged. He also outlined capital allocation of THB 15 billion to THB 16 billion in CapEx, unchanged because lower-priority spend and deferred projects offset the Bonchon acquisition, and said leverage rose to 1.1x debt-to-equity and 4.72x net debt-to-EBITDA due to the perpetual bond redemption and seasonal working capital needs. He added that average cost of debt fell to about 4.1% from 4.4%, and said further asset rotations and operating cash flow are intended to support deleveraging.

Analysts pressed on why 2027 margin should improve versus 2026, and management pointed to the asset-light mix, more direct-channel sales, and efficiency gains from ERP modernization, outsourcing and automation. On Bonchon, management said the deal is expected to be double-digit ROIC, high-double-digit IRR and earnings accretive from day 1, with only low- to mid-single-digit near-term EPS accretion because the transaction has not closed yet. They also said Bonchon has been successful in Thailand, citing first-half same-store sales growth around 5% to 7%, and said the goal is to grow the brand to 500-plus outlets over the next five years. On debt, management explained that the higher leverage ratio reflects the accounting impact of perpetual bond redemption rather than a cash step-up, and said 2026 funding costs should be around 4.1% to 4.2%, with next year likely similar or slightly higher.