Citigroup: Slightly raised the target price for SAMSONITE (01910) to HKD 16.3, maintaining a "Buy" rating.

Citigroup has released a research report stating that SAMSONITE (01910) reported adjusted net profit in the second quarter better than expected; adjusted EBITDA fell 4% year-on-year to $137 million; the adjusted EBITDA margin was 16.1%, which would be 14.1% excluding U.S. tariff refunds, compared to 13.1% in the first quarter and 16.3% in the same period last year. Revenue, however, fell short of expectations, decreasing 1.7% year-on-year at constant exchange rates to $852 million. The target price has been slightly raised from HKD 16 to HKD 16.3, and a Buy rating has been maintained. SAMSONITE's management expects net sales growth at constant exchange rates in the third quarter to be similar to the second quarter, falling short of market forecasts. With weak consumer confidence and slowing global travel demand, revenue and profit margins may continue to be under pressure in the second half of the year. Citigroup has made slight adjustments to the company's earnings forecasts, and the company still intends to complete its dual listing in the U.S. later this year under improved conditions, which the bank views as a potential catalyst for valuation reassessment.