Samsonite 1910

[winston]

not vested

SAMSONITE (01910.HK) Once Plummets 5%, as Private Equity Firms' Interest for Buyout Reportedly Wane

2024/04/16

Bloomberg cites sources reporting that private equity firms have weakened their interest in acquiring SAMSONITE (01910.HK) after assessing its valuation as too high.

The investment fund's initial interest is not in line with the value SAMSONITE expected.

Although potential buyers could restart the privatisation deal, the plan has been put on hold.

It was earlier reported that SAMSONITE saw a dual listing as an option to enhance its value. Funds such as Carlyle Group and KKR & Co. had initially expressed interest in a potential buyout of the company, while CVC Capital Partners and DCP Capital Partners were among those also considering a deal.

The news dragged down the performance of SAMSONITE shares, which plummeted 5.3% to as low as $27.5 in the afternoon. It trades now at $28, down 3.61%, with 6.348 million shares traded, involving $179 million.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

1Q Results

Revenue: +1%; US$860m
Earnings: +12%; US$87m, 0.056

https://www1.hkexnews.hk/listedco/listc ... 401055.pdf

[winston]

not vested

SAMSONITE (01910.HK) Reportedly Keeps Privatisation Option Open, May Choose US as Dual-listing Location

2024/03/22

Citing sources, Bloomberg reported that the dual listing location for SAMSONITE (01910.HK) will most likely be the US, with Europe also an option.

On the other hand, the company still retains the possibility of privatisation, and has already received initial interest from several companies in a potential takeover, with both options likely to be pursued in parallel over the next few months to help the board maximise value for shareholders.

Previously, it was rumoured that Carlyle Group and KKR & Co. had shown initial interest in acquiring SAMSONITE. However, the company announced this morning (22 Mar) that its board of directors has decided to focus on seeking a dual listing, resulting in a 7.2% crash in share price to close at $28.5.

It is learnt that SAMSONITE has received initial interest from a number of companies in the potential acquisition, and any further acquisition talks with potential buyers would require due diligence and financing from potential bidders.

Responding to the report, SAMSONITE said it had nothing to add beyond its earlier statement.

The sources further commented that fragmentation of SAMSONITE's controlling stake could pose some hurdles to a privatisation deal, as it would only take a small number of dissenting shareholders to block a privatisation plan.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

<Research Report>CLSA Lifts SAMSONITE (01910.HK) TP to $36, Rating Buy

2024/03/15

SAMSONITE (01910.HK)'s sales volume and adjusted EBITDA for 2023 were in line with expectations of the market and CLSA, with cash dividend declaration resumed, CLSA issued a research report saying.

Heading into 2024, the Group's 1Q24 sales grew 5-6% YoY amid fierce competition.

Management raises its full-year sales guidance to 10-12% YoY, and believes that Asia will support the performance.

CLSA raised the Group's 2024 and 2025 sales/ net profit forecast by 1%/ 7-9%, while adjusted EBITDA profit is expected to expand by 20 bps per year during the period.

CLSA lifted its target price on SAMSONITE from $32 to $36, with rating at Buy.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

<Research Report>M Stanley Slightly Adds TP of SAMSONITE (01910.HK) to $35, Expects Mgmt More Confident in Outlook

2024/03/04

Morgan Stanley wrote in a report that the share price of SAMSONITE (01910.HK) has risen 21% since 26 February, compared with a 1% rise in the HSI over the same period, mainly due to media reports that the company has received a takeover offer.

According to Morgan Stanley, SAMSONITE's valuation is still at a discount to its global peers even after the share price rise, and the broker believed growing travel demand would support its sales outlook, with growth in its Tumi brand and Asian market set to boost its profit margins.

With the recent encouraging data from the travel industry, the broker expected company management to provide a more definitive outlook when it announces its results in the future.

Morgan Stanley estimated SAMSONITE's sales to grow by 9% and 7% in 2024 and 2025 respectively. The broker inclined its target price from $34.3 to $35 and gave it an Overweight rating.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

vested

1Q24 gross margin beat expectations

Samsonite scored firm 1Q24 performance even on a strong base, with solid y/y net sales gain of 4.1% on constant currencies, mainly driven by its growth in Asia.

Improvement in profitability also saw gross margin expanded by 2.4ppt to 60.4% and adjusted EBITDA margin at a new 1Q record of 18.8% (up 0.4ppt, even with 0.2ppt increase in A&P cost ratio).

Attributable profit went up by 18.8% on constant currencies, or up 12.3% to USD83m on reported numbers, largely in line.

The company is well positioned to capitalise on the ongoing recovery in travel and tourism, with a focus on product innovation, marketing, and sustainability initiatives.

Management remains positive on the outlook and expects a strong summer travel season to boost growth. Maintain BUY (TP: HKD43.32)

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=19610

[winston]

not vested

Broker│Opinion

Citi│Stable execution and proactive change drove quality earnings growth

CMBI│Quality growth laid the foundation for strong earnings growth

CLSA│Successful revitalisation of legacy games

JPMorgan│Multitide of positive surprises should further boost share price

Jefferies│High-quality growth, reiterated as a top pick in the sector

Goldman Sachs│High visibility of growth momentum, strong CAGR of earnings

CITIC Securities│Video Accounts drove advertising business, profit release beat again

Macquarie│Consolidating core strengths and expanding margins

CICC│Game revenue returned to growth, improved gross margins drove beat profits

Nomura│Earnings momentum continued

UBS│1Q results beat, monetisation potential unleashed

Daiwa│Gross margins beat

Huatai Securities│Quarterly profit strongly beat, AI empowered advertising business

Morgan Stanley│Best start in years, remained top pick for large-cap Chinese tech stocks

HSBC Global Research│Earnings quality continued to improve

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

Samsonite to pursue dual listing in US, implement US$200-million share buy-back

Samsonite, which has been listed in Hong Kong since 2011, expects the dual listing to boost liquidity and reach more investors in the US

by Aileen Chuang

Luggage maker Samsonite International has decided to pursue a second stock listing in the United States, its single-biggest market by sales, to reach more investors and boost liquidity of the firm’s shares.

Samsonite, which has been listed in Hong Kong since 2011, revealed that initiative in its interim results on Wednesday, ending months of speculation after initially mentioning the dual-listing plan in March.

Source: SCMP

https://www.scmp.com/business/banking-f ... pe=section

[winston]

not vested

1H Results

Revenue: +0%; US$1.7b
EPS: +7%; US$0.11; US$165m

https://www1.hkexnews.hk/listedco/listc ... 401035.pdf

[winston]

vested

<Research>CLSA Cuts SAMSONITE (01910.HK) TP to $27; Short-term Pressure Remains

CLSA issued a research report on SAMSONITE (01910.HK), highlighting that its 2Q sales were 4% below market expectations, while gross margins remained strong at 60%.

Company management lowered its full-year sales guidance to low single-digit YoY growth, taking into account macro uncertainties.

The broker believed that short-term pressures on the group would continue and that a second listing in the US would be a catalyst to drive the stock's ratings.

CLSA lowered its target price from $33 to $27 but maintained its Outperform rating.

Related News: Daiwa Trims SAMSONITE (01910.HK) TP to $30, Cuts Earnings Forecasts on Gloomy Macro Outlook

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN