HK Stock Market Move | SAMSONITE (01910) rises over 6% again. Weak retail sales in the third quarter have temporarily put pressure on performance. Institutions predict a recovery in the fourth quarter.

SAMSONITE (01910) rose by over 6% again, as of the time of writing, it has risen by 4.23% to 18.72 Hong Kong dollars, with a trading volume of 3.04 billion Hong Kong dollars. In terms of news, SAMSONITE released its third-quarter performance for 2024, with a net sales of 878 million US dollars for the three months ending on September 30, 2024, a decrease of 8.3% year-on-year (a decrease of 6.8% when calculated at a constant exchange rate). This was attributed to weaker-than-expected consumer confidence globally, and intensified promotional environment in various markets (especially in India). The attributable profit to equity holders was 66.2 million US dollars, a decrease of 42.5 million US dollars or 39.1% year-on-year (a decrease of 34.2% when calculated at a constant exchange rate). Bank of America Securities pointed out that SAMSONITE's third-quarter performance was below expectations and is expected to recover in the fourth quarter. They have revised down their adjusted EBITDA forecasts for this and next year by 6%, and profit forecasts by 11% and 13%, to reflect the quarterly performance. Management expects natural sales for the full year to be flat compared to last year, implying a mid-single-digit sales growth in the fourth quarter. The fourth quarter trend has improved so far, mainly due to stimulus measures from the Chinese government and the low base in the fourth quarter of last year. Zheshang believes that the weakening retail performance in the third quarter temporarily pressures earnings, but the three major high-quality brand assets ensure stable development. They expect successful listing on the US stock market to enhance liquidity, and anticipate a dividend rate of 30% for 2024, as well as additional share buybacks of up to 200 million US dollars, with a dividend yield of approximately 9%.