Core Viewpoint - UBS has raised the target price for Samsonite (01910.HK) to HKD 16.3, despite the first-quarter profit margin falling short of expectations [1] Group 1: Financial Performance - Adjusted EBITDA for the first quarter was USD 128 million, which was below UBS's expectation of a 16% margin, primarily due to lower-than-expected profit margins [1] - UBS has slightly increased its revenue forecast for Samsonite by 1% to reflect better-than-expected sales trends in North America for the second quarter [1] - The adjusted EBITDA margin forecast has been reduced by approximately 110 basis points due to more significant-than-expected operational deleveraging in the first quarter [1] Group 2: Earnings Forecast Adjustments - UBS has lowered its earnings per share forecasts for 2025 to 2027 by 8%, 2%, and 2% respectively [1] - The weighted average cost of capital forecast has been revised down from 9.9% to 9.5%, leading to a 9% increase in the target price from HKD 15 to HKD 16.3 [1] Group 3: Valuation and Cash Flow - The current price reflects low earnings visibility, leading UBS to maintain a "neutral" rating [1] - Strong free cash flow generation may pave the way for a new round of share buybacks, which UBS believes could support the valuation [1]
瑞银升新秀丽目标价至16.3港元 首季利润率逊预期