Earnings Report /
Thailand

Minor International PCL: Ignore bottom-out loss in 2Q20: look to a recovery path

  • Short of our estimates but narrower loss than the street forecast

  • MINT reported a Bt7.2bn core loss in 2Q20

  • The result was below our estimate

Bualuang Securities
14 August 2020

We suggest investors maximum loading MINT ahead of 3Q20-4Q20 bottom-line recovery. Our BUY rating stands at a YE21 DCF-derived target price of Bt27, 10% discount to DCF value based on 8.0% WACC and 2.0% terminal growth. MINT trades at a bargain PBV of 1.3x in 2021, a deep discount to 2.9x of its 2006-2019 mean.

Short of our estimates but narrower loss than the street forecast  

MINT reported a Bt7.2bn core loss in 2Q20 against core profits of Bt2.1bn in 2Q19 and loss of Bt3.2bn in 1Q20. Excluding Bt1.3bn in four extra loss items, net loss was Bt8.4bn. The result was below our estimate (of Bt6bn loss) due to lower-than-expected GM, but ahead of the consensus forecast of Bt8.8bn loss.