Yamato: Lower SAMSONITE (01910) target price to 17.6 Hong Kong dollars, reiterate "buy" rating.

Yamato released a research report, stating that it is expected that SAMSONITE (01910) will experience a slowdown in sales in the second quarter, mainly due to a decrease in travel demand caused by the conflict in the Middle East; however, it is expected that sales will improve month by month in the next quarter, and will improve seasonally in the second half of the year. The firm reiterated a "buy" rating on SAMSONITE, but lowered its earnings per share forecasts for 2026 to 2027 by 26% to 28%, and also lowered its valuation basis. The average price-earnings ratio for the next two years was revised from 13 times to 12 times, and the target price was lowered from HK$25 to HK$17.6, reflecting weaker growth prospects and reduced market share visibility. However, the firm believes that there are clear short-term catalysts for SAMSONITE, including improvements in sales on a quarterly basis after ceasefire and easing of regional tensions; additionally, management stated during the first quarter earnings conference call that their goal is to complete a dual listing in the United States by 2026, which could also bring about revaluation opportunities.