Macquarie: SAMSONITE (01910) rated as "Neutral", target price lowered to 19.7 Hong Kong dollars.

Macquarie released a research report stating that SAMSONITE (01910) has a "neutral" rating, with a downward adjustment of the profit forecast for the current and next year by 2.3% and 10.2%, respectively. It is expected that sales and profits for the third quarter will be lower than expected, and the target price has been lowered from HK$22 to HK$19.7. The bank predicts that SAMSONITE's revenue in the third quarter of this year will decrease by 3% compared to the same period last year due to the downward global consumption trend. It is believed that the gross profit margin in the third quarter will be negatively impacted by unfavorable regional and product mix, but good cash flow should allow the company to continue to reward shareholders and deleverage.