InvestIdeas

Not vested

Samsonite (1910), goes public today. The luggage maker has fixed its price at the bottom of its indicative range - HK$14.5 per share.

The oversubscription rate of the retail tranche was less than one time.

Those who applied for a minimum lot of 300 shares will get their full allocation. Samsonite is priced at 13 times its 2012 expected earnings, so it's not expensive.

If the stock drops below its IPO price on debut, it could prove to be a good bargain in the medium term.


Source: The Standard HK

Stay away from this counter.
It did not make any real profit in 2010, it just did a reversal of impairment of intangible assets , that is cancelled some of the losses it declared in 2008 and called that a profit (check at page 20 of prospectus here http://hub2.samsonite.com/investors/_in ... tus_en.pdf )
Net tangible assets were negative before the IPO and even after it they stand at a miserable 0.75 HKD per share (again check at page 26 of the prospectus). This means current P/NTA is above 18 times !

Not vested

Another quality pick is Samsonite (1910), which listed last month. The luggage maker had fixed its offer price at the bottom of its indicative range - HK$14.50 a share or 13 times its 2012 expected earnings. It is not an expensive pick.

I suggest you buy the stock if it drops below its offer price.

Yesterday, investors finally bought the stock to tap into the growth of the luggage sector in China and India, pushing it to HK$15.24 - an all-time high.

Source: Dr. Check, The Standard HK

you sure the chinamen and indians buy samsonite? or do they buy samsonight?

Samsonite (1910 HK, Buy) - Market dominance with a turnaround story( HKD11.34 / PT: HKD19.70 )

Action: Initiating BUY on a restructuring story; attractive valuations

We believe Samsonite has recovered significantly since the GFC and is on the path to more stable growth.

With 38% of FY12F sales expected to come from Asia, its valuations (11.7x FY12F earnings) look attractive.

Its net cash position and, coupled with an FY11F adjusted RoE of ~18% and RoIC of ~19%, makes it an attractive investment, in our view.

Source: Nomura

not vested

Samsonite [1910 HK] - Buy :
Samsonite management meet takeaways; growth on track – we reiterate BUY ( HKD11.80 / PT: HKD19.70 )

Post our meeting with Samsonite’s senior management, we came back reassured that growth momentum is intact and the company has not yet seen any slowdown.

Our discussion on key changes post restructuring highlighted the positive impact of its regional product portfolio and debt free balance sheet.

We reiterate Samsonite as our top pick and think that the muted valuations (~12x CY12 P/E), despite strong data-points, already reflects macro concerns and the company may surprise on upside.

We remain cautious on RBS stake but near-term strong trading update should support the stock price.


Source: Nomura

not vested

Samsonite [1910 HK] - Buy : Samsonite 3Q11 trading update — All seems good for now( HKD12.32 / PT: HKD19.70 )

Samsonite released its 3Q11 trading update today.

Although details are limited (on comp sales etc) the trend is mostly in line with expectations.

Ex forex impact, 3Q net sales rose 22.9% y-y (vs 1H growth of 28.6%). 9M organic sales growth of ~26% is in line with our FY11 estimate of ~22% (as we expect a slowdown in 4Q).

In terms of regions, Asia remains the growth engine, while surprisingly, Latin America slowed down sharply.

Overall, we still believe that the stock is already pricing in a significant slowdown and there is still upside risk to Street estimates. Maintain BUY.

Source: Dow Jones Newswire

not vested

DJ MARKET TALK: Macquarie Starts Samsonite At Outperform

1259 [Dow Jones] STOCK CALL: Macquarie starts Samsonite International (1910.HK) at Outperform with a HK$15.90 target price, implying 14X FY12 P/E.

The house says Samsonite is a brand which, notwithstanding its strong brand recognition and dominant market share, has been undermonetized historically, due to its capital structure and high operating leverage.

This has changed with the entry of a new management team and "we see Samsonite expanding its points of presence to capture growth, particularly in Asia, where air travel and tourism are on an uptrend."

Macquarie says Samsonite's growth in both emerging and mature markets has been impressive at double digits over 1H11, driven by the revival of the brand, wider product range and greater points of presence relative to its peers.

The stock is down 7.7% at HK$11.54 at midday.

Source: Dow Jones Newswire

bought some today after the lunch break, luxury products is one of the few remaining sectors I still have faith in

not vested

Samsonite (1910 HK, Buy) - Macro leverage may impact FY12F growth rates( HKD11.8 / PT: HKD16.1 )

Action: Drivers shifting from restructuring to travel-related demand

Samsonite performed well in 2011 with impressive growth momentum, helped by financial, management and product restructuring.

Slowing macros, however, may see the near-term stock drivers move to travel-related demand.

Historical analysis shows sales are highly leveraged to global travel, which is showing signs of slowing.

Thus, we revise our estimates to reflect slower growth (we cut our EU/US assumptions). Asia, in our view, will continue to grow, driven by brand and capital investments.

Source: Nomura