- BUY Entry 17 – Target – 19 Stop Loss – 16
- Samsonite International S.A. is a Hong Kong-based company principally engaged in the design, manufacture, sourcing and distribution of luggages, business and computer bags, outdoor and casual bags, travel accessories and slim protective cases for personal electronic devices. The Company operates its business through three segments. The Travel Bag segment is engaged in travel products with suitcases and carry-ons of three main categories, including hard-side, soft-side and hybrid luggages. The Casual Bags segment is engaged in daily use, including different types of backpacks, female and male shoulder bags and wheeled duffel bags. The Business Bags segment is engaged in business use, including rolling mobile office bags, briefcases and computer bags.
- Further recovery in the tourism sector. According to the IATA, the global economics air passenger traffic will continue to recover, indicating an enhancement in tourism. On average, the industry-wide air traffic volume will reach 83% of the 2019 level in 2022 compared to 47% of the pre-COVID level in 2021.
- Turned losses in profits in FY21. FY21 revenue jumped by 31.5% YoY to US$2.0bn. Gross profit jumped by 55.0% YoY to US$1.1bn. GMP reached 54.5% during the period (FY19 GPM: 55.4%). Net profit attributable to the company shareholders reached US$14.3mn compared to US$1.3bn losses in FY20.
- The updated market consensus of the EPS growth in FY22/23 is 1,230%/33.8% YoY, respectively, translating to 16.9×/12.6x forward PE. The current PER is 237.7x. Bloomberg consensus average 12-month target price is HK$22.34.
Samsonite International S.A. (1910 HK) (Source: Bloomberg)