CLSA Increases Price Target for SAMSONITE (01910.HK) to $22, Maintains Strong Outperform Rating
Sales Performance: Samsonite's 3Q25 sales reached $873 million, reflecting a 1.3% year-over-year decline, but showed quarter-over-quarter improvements across all regions and brands, with positive sales trends from August to October.
Financial Outlook: CLSA projects a FY2025 adjusted EBITDA margin of 16.4%, a decrease from the previous year, but anticipates a rebound to 17.1% in FY2026 alongside a 3% sales growth, leading to an increased target price from $21 to $22.
Trade with 70% Backtested Accuracy
Analyst Views on 01910
About the author
SAMSONITE Names Former Pandora North America President as TUMI's New Leader
New Leadership Announcement: Samsonite has appointed Luciano Severo Rodembusch as the President of TUMI, effective around April 1.
Rodembusch's Background: Rodembusch, 55, has extensive experience in the luxury sector, previously serving as President of North America for Pandora and holding various executive roles at Tiffany & Co.
HSI Rises by 233 Points as LI NING Jumps Over 4%; YOFC Surges 21%
Hong Kong Stock Market Performance: Hong Kong stocks rose, with the HSI gaining 233 points (0.9%) to close at 25,468, driven by China's equity market, while total market turnover fell to $183.141 billion.
Key Stock Movements: YOFC surged 21.2% amid significant turnover, while LENS and COWELL also saw gains of 4.2% and 2.6%, respectively, due to Apple's plans to expand iPhone production.
Industrial Production in China: China's industrial production year-on-year for November was reported at 4.8%, slightly below the previous value of 4.9% and below the forecast of 5%.
Gains in Various Sectors: Notable increases were seen in sportswear (LI NING +4.3%), airlines (CHINA SOUTH AIR +5.9%), luggage (SAMSONITE +3.7%), and travel platforms (TONGCHENGTRAVEL +3.4%).
HSI Rises 56 Points at Midday Driven by Surge in Lithium and Resource Stocks; LI NING Jumps Over 4%
Market Overview: The HSI rose 56 points (0.2%) to 25,291, with a total half-day turnover of $84.882 billion, while the HSCEI and HSTECH also saw modest gains.
Lithium Stocks Surge: Following Chile's presidential election, lithium stocks like GANFENGLITHIUM and TIANQI LITHIUM increased by 5.6% and 6.9% respectively, driven by concerns over lithium ore supply.
Automakers Performance: Major automakers like XIAOMI-W and BYD COMPANY experienced declines of 0.6% and 1.1%, while XPENG-W dropped 1.9%, contrasting with gains in autonomous driving stocks like PONY-W.
Resource and Airline Stocks Rise: Chinese airlines saw significant increases, with CHINA SOUTH AIR up 7.2%, while resource stocks like JIANGXI COPPER and MMG also performed well, climbing 3.6% and 3.2% respectively.
<Research> CLSA Names ANTA SPORTS, YUE YUEN INDUSTRIES, and SAMSONITE as Consumer Favorites
China's Consumption Sector Outlook: CLSA forecasts that China's consumption sector will focus on niche market development, with high-end consumption benefiting from easing monetary policy and improved stock market conditions.
Target Price Adjustments: CLSA has raised the target price for YUE YUEN IND from $16 to $18 and set a target of $13 for CHOW TAI FOOK, emphasizing the importance of upcoming peak season sales.
Art Toy Sector Analysis: The target price for POP MART has been cut to $303, with expectations that future growth may hinge on intellectual property development beyond current offerings.
Investment Recommendations: CLSA suggests investors monitor the earnings potential of companies like LI NING, ETERNAL BEAUTY, and CTG DUTY-FREE, highlighting their recent performance and short selling ratios.
<Study>CLSA Consumer Ratings and Target Prices (Table)
Stock Performance Overview: Several companies, including Samsonite and Anta Sports, showed mixed stock performance with varying short selling ratios, indicating market sentiment and trading activity.
Recommendations and Target Prices: Analysts have given "Outperform" ratings to multiple companies, including Pop Mart and Shenzhou International, with target price adjustments reflecting expected performance changes.
Short Selling Insights: Notable short selling activity was observed in companies like Pop Mart and Li Ning, with ratios indicating significant market speculation against these stocks.
Related News Highlights: Chow Tai Fook reported a slight increase in interim net profit and raised its full-year profit margin guidance, reflecting positive management outlook amidst market fluctuations.
G Sachs Raises Target Price for SAMSONITE (01910.HK) to $22, Maintains Buy Rating
Positive Business Outlook: Samsonite's management expressed a more optimistic view on business prospects during a recent conference call, indicating expected improvements in net sales growth for Q4 due to new product launches and increased advertising.
Analyst Upgrades: CLSA raised its target price for Samsonite from HKD20.9 to HKD22 and increased its adjusted net profit forecast for 2025-2027 by 5-8%, maintaining a Buy rating based on the company's 3Q results.
Potential Catalysts: Goldman Sachs highlighted that a potential dual listing in the US next year and share buybacks could act as catalysts for a re-rating of Samsonite's stock.
Short Selling Activity: The company experienced short selling of $13.30 million, with a ratio of 11.82%, indicating some market skepticism despite the positive outlook from analysts.
SAMSONITE Names Former Pandora North America President as TUMI's New Leader
New Leadership Announcement: Samsonite has appointed Luciano Severo Rodembusch as the President of TUMI, effective around April 1.
Rodembusch's Background: Rodembusch, 55, has extensive experience in the luxury sector, previously serving as President of North America for Pandora and holding various executive roles at Tiffany & Co.
HSI Rises by 233 Points as LI NING Jumps Over 4%; YOFC Surges 21%
Hong Kong Stock Market Performance: Hong Kong stocks rose, with the HSI gaining 233 points (0.9%) to close at 25,468, driven by China's equity market, while total market turnover fell to $183.141 billion.
Key Stock Movements: YOFC surged 21.2% amid significant turnover, while LENS and COWELL also saw gains of 4.2% and 2.6%, respectively, due to Apple's plans to expand iPhone production.
Industrial Production in China: China's industrial production year-on-year for November was reported at 4.8%, slightly below the previous value of 4.9% and below the forecast of 5%.
Gains in Various Sectors: Notable increases were seen in sportswear (LI NING +4.3%), airlines (CHINA SOUTH AIR +5.9%), luggage (SAMSONITE +3.7%), and travel platforms (TONGCHENGTRAVEL +3.4%).
HSI Rises 56 Points at Midday Driven by Surge in Lithium and Resource Stocks; LI NING Jumps Over 4%
Market Overview: The HSI rose 56 points (0.2%) to 25,291, with a total half-day turnover of $84.882 billion, while the HSCEI and HSTECH also saw modest gains.
Lithium Stocks Surge: Following Chile's presidential election, lithium stocks like GANFENGLITHIUM and TIANQI LITHIUM increased by 5.6% and 6.9% respectively, driven by concerns over lithium ore supply.
Automakers Performance: Major automakers like XIAOMI-W and BYD COMPANY experienced declines of 0.6% and 1.1%, while XPENG-W dropped 1.9%, contrasting with gains in autonomous driving stocks like PONY-W.
Resource and Airline Stocks Rise: Chinese airlines saw significant increases, with CHINA SOUTH AIR up 7.2%, while resource stocks like JIANGXI COPPER and MMG also performed well, climbing 3.6% and 3.2% respectively.
<Research> CLSA Names ANTA SPORTS, YUE YUEN INDUSTRIES, and SAMSONITE as Consumer Favorites
China's Consumption Sector Outlook: CLSA forecasts that China's consumption sector will focus on niche market development, with high-end consumption benefiting from easing monetary policy and improved stock market conditions.
Target Price Adjustments: CLSA has raised the target price for YUE YUEN IND from $16 to $18 and set a target of $13 for CHOW TAI FOOK, emphasizing the importance of upcoming peak season sales.
Art Toy Sector Analysis: The target price for POP MART has been cut to $303, with expectations that future growth may hinge on intellectual property development beyond current offerings.
Investment Recommendations: CLSA suggests investors monitor the earnings potential of companies like LI NING, ETERNAL BEAUTY, and CTG DUTY-FREE, highlighting their recent performance and short selling ratios.
<Study>CLSA Consumer Ratings and Target Prices (Table)
Stock Performance Overview: Several companies, including Samsonite and Anta Sports, showed mixed stock performance with varying short selling ratios, indicating market sentiment and trading activity.
Recommendations and Target Prices: Analysts have given "Outperform" ratings to multiple companies, including Pop Mart and Shenzhou International, with target price adjustments reflecting expected performance changes.
Short Selling Insights: Notable short selling activity was observed in companies like Pop Mart and Li Ning, with ratios indicating significant market speculation against these stocks.
Related News Highlights: Chow Tai Fook reported a slight increase in interim net profit and raised its full-year profit margin guidance, reflecting positive management outlook amidst market fluctuations.
G Sachs Raises Target Price for SAMSONITE (01910.HK) to $22, Maintains Buy Rating
Positive Business Outlook: Samsonite's management expressed a more optimistic view on business prospects during a recent conference call, indicating expected improvements in net sales growth for Q4 due to new product launches and increased advertising.
Analyst Upgrades: CLSA raised its target price for Samsonite from HKD20.9 to HKD22 and increased its adjusted net profit forecast for 2025-2027 by 5-8%, maintaining a Buy rating based on the company's 3Q results.
Potential Catalysts: Goldman Sachs highlighted that a potential dual listing in the US next year and share buybacks could act as catalysts for a re-rating of Samsonite's stock.
Short Selling Activity: The company experienced short selling of $13.30 million, with a ratio of 11.82%, indicating some market skepticism despite the positive outlook from analysts.
