Macquarie Maintains Outperform Rating on Samsonite, Anticipates Q4 Turnaround

Stock News
Feb 16

Macquarie has reiterated its "Outperform" rating on Samsonite (01910) with a target price of HK$29. The company disclosed details regarding its planned dual listing in the United States, which is expected to be conducted through American Depositary Shares (ADS). Net proceeds from the listing are intended for working capital and general corporate purposes, including operational and capital expenditures, debt repayment, and potential acquisitions. A general meeting and an extraordinary general meeting are scheduled for March 19, 2026, to approve these matters. Additionally, the firm noted that Samsonite is entering a new phase of business development, including changes in management. Macquarie reaffirmed its view that the company is at a turning point, expecting both revenue and adjusted net profit to reverse their declining trend in the fourth quarter of 2025, with year-on-year growth of 0.4% and 6.2%, respectively. Furthermore, with the industry's inventory destocking cycle largely concluded and the luggage replacement cycle commencing, the firm anticipates the business will enter a period of double-digit profit growth over the next two years.

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