Core Viewpoint - Samsonite International S.A. is rated as a Buy, with expectations for recovery in share price following recent underperformance and the potential positive impact of a planned dual listing [2][3]. Financial Performance - Samsonite's Hong Kong-listed shares fell by 15% from HK24.50 by June 11, 2024, largely due to disappointing Q1 2024 financial results [4]. - The company's Q1 2024 revenue was 896.0 million, leading to an 11% drop in share price the following day [4][5]. - Revenue growth slowed from 15.9% YoY in Q4 2023 to 0.9% YoY in Q1 2024, with a notable high base effect from Q1 2023, which saw a 48.6% YoY increase [5]. Future Outlook - The revenue growth outlook for the remainder of 2024 is more favorable, with anticipated YoY growth rates of 6.8%, 10.2%, and 11.9% for Q2, Q3, and Q4, respectively [5]. - Samsonite's normalized net profit for Q1 2024 was $87.1 million, reflecting a 7.2% YoY increase, with expectations for improved net margins in FY 2024 [5]. Dual Listing Plans - Samsonite announced plans for a dual listing on a second leading stock exchange, which is expected to enhance its valuation multiple [6]. - Currently, Samsonite's normalized P/E ratio is 10 times, significantly lower than peers like Ralph Lauren (16 times) and LVMH (23 times), indicating potential for valuation expansion post dual listing [6].
Samsonite International: Focus On Valuation Re-Rating Potential