Daiwa: Raises SAMSONITE (01910) target price to HKD 17.8, reiterates Buy rating.

Daihe released a research report stating that SAMSONITE (01910) achieved expected performance in the second quarter. Excluding the impact of tariff refunds, both the gross profit margin and EBITDA margin improved quarter-on-quarter. In fixed exchange rates, sales in the second quarter decreased by 2% year-on-year, remaining roughly flat when excluding the Middle East and India. The gross profit margin expanded by 3 percentage points year-on-year to 62%. The report indicated that demand for SAMSONITE has not yet recovered, but may have bottomed out in the second quarter. The company expects the adjusted EBITDA margin to continue improving quarter-on-quarter in the third quarter. To reflect the price adjustment plan (expected to be implemented in the fourth quarter of this year), the firm slightly raised SAMSONITEs gross profit margin forecast for next year, increasing the earnings per share forecast for 2027-28 by 2 to 3%, and raised the target price from HKD 17.6 to HKD 17.8, reiterating a "Buy" rating.