News Update

November 19, 2019

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MINT: Acquired Bonchon Chicken Restaurant in Thailand 

Event: MINT has acquired Bonchon Korean-style fried chicken restaurant in Thailand with the total investment at Bt2.0bn. (Source: SET)

Comment:

  • This is an investment in Chicken Time Co., Ltd., Thailand. Currently, Bonchon has 44 owned outlets and plans to open another 2 outlets by the end of 2019. 38 outlets are in greater Bangkok.
  • MINT is in the process of discussing with the holder of master franchise rights to acquire the rights to further expand Bonchon outlets in Thailand. It expects to finalize in the next 3-6 months.
  • The detail of Chicken Time’s financial statement has not been disclosed. However, MINT guides that this company is profitable with the higher margin than MINT’s food business (MINT’s EBITDA margin was 15% and net profit margin was 5% for 9M19) and the investment valuation is 10-13x EV/EBITDA that is in-line with historical transactions and trading valuations of F&B companies.
  • The source of fund is from debt financing.
  • We preliminary estimate an earnings upside by 1-2% for MINT on the full-year basis, which is insignificant.
  • We rate BUY on MINT with a TP at Bt45/share.