Economic Information Daily (5th exclusive) Samsonite (01910) is up 4% at HK$12.94, with approximately 1.29 million shares traded, involving HK$165.1 million, reaching a high of HK$13.07 and a low of HK$12.43.
UBS raised its target price for Samsonite from HK$20 to HK$21.4, maintaining a "buy" rating, expecting third-quarter revenue to be slightly better than management's guidance of a 1.7% year-on-year decline, primarily due to improved global air passenger demand since the second quarter. The current forecast suggests that on a constant currency basis, the revenue decline will narrow to 0.9% in the third quarter, with gross margin excluding tariff refunds remaining largely stable at 60% quarter-on-quarter; adjusted EBITDA is expected to decline 14% year-on-year to USD 123 million, implying an EBITDA margin of 14.3%.
The brokerage noted that Samsonite's share price has fallen 36% year-to-date, with market forecasts for earnings per share in fiscal years 2026 and 2027 downgraded by 21% and 15% respectively. Current buy-side expectations still reflect risks of further earnings downgrades, but if third-quarter revenue meets expectations, it could help stabilize earnings forecasts, limit further market expectation reductions, and support share price performance.
The brokerage raised its adjusted EBITDA forecast for fiscal year 2028 by 3%, and for fiscal years 2027 to 2028 by 8%, factoring in slightly better-than-expected organic sales trends in the second half of this year and the inclusion of revenue contributions from its brand BEIS into the group's overall financials in the fourth quarter. After including BEIS contributions, Samsonite's sales are expected to grow 4.5% year-on-year in the fourth quarter on a constant currency basis, and 8.5% in fiscal year 2027.
Currently, the Hang Seng Index stands at 23,955, down 16 points or less than 0.1%, with main board turnover close to HK$57.9 billion. The Hang Seng China Enterprises Index is at 8,032, up 1 point or less than 0.1%. The Hang Seng Tech Index is at 4,172, up 14 points or 0.3%. (vs)
UBS raised its target price for Samsonite from HK$20 to HK$21.4, maintaining a "buy" rating, expecting third-quarter revenue to be slightly better than management's guidance of a 1.7% year-on-year decline, primarily due to improved global air passenger demand since the second quarter. The current forecast suggests that on a constant currency basis, the revenue decline will narrow to 0.9% in the third quarter, with gross margin excluding tariff refunds remaining largely stable at 60% quarter-on-quarter; adjusted EBITDA is expected to decline 14% year-on-year to USD 123 million, implying an EBITDA margin of 14.3%.
The brokerage noted that Samsonite's share price has fallen 36% year-to-date, with market forecasts for earnings per share in fiscal years 2026 and 2027 downgraded by 21% and 15% respectively. Current buy-side expectations still reflect risks of further earnings downgrades, but if third-quarter revenue meets expectations, it could help stabilize earnings forecasts, limit further market expectation reductions, and support share price performance.
The brokerage raised its adjusted EBITDA forecast for fiscal year 2028 by 3%, and for fiscal years 2027 to 2028 by 8%, factoring in slightly better-than-expected organic sales trends in the second half of this year and the inclusion of revenue contributions from its brand BEIS into the group's overall financials in the fourth quarter. After including BEIS contributions, Samsonite's sales are expected to grow 4.5% year-on-year in the fourth quarter on a constant currency basis, and 8.5% in fiscal year 2027.
Currently, the Hang Seng Index stands at 23,955, down 16 points or less than 0.1%, with main board turnover close to HK$57.9 billion. The Hang Seng China Enterprises Index is at 8,032, up 1 point or less than 0.1%. The Hang Seng Tech Index is at 4,172, up 14 points or 0.3%. (vs)
