Positive outlook intact
• 4Q23 revenue growth could be softer than expected q-o-q, prompting profit-taking as Samsonite’s share price outperformed the HSI by c.40% over the past 12 months.
• Sales momentum in N. America & Europe may continue to normalize in 2024, while decent growth from business travels and Asia should support performance – impending catalysts to include strong travel spree in Feb during the Chinese New Year. Better product-mix and operating leverage also drive margins.
• We trimmed sales & profit estimates by 3% for FY23/24F. In view of decent earnings CAGR of 19% in FY23-25, and trading at merely c.0.3x PEG, we maintain BUY on sound growth prospects.
