Investment Rating - The report maintains a BUY rating for the company with a target price (TP) revised down by 9% to HK 18.52 [1][3]. Core Insights - The company experienced mixed performance in FY24, with net sales remaining flat at US 346 million, primarily due to higher selling expenses and fewer impairment reversals [1][2]. - Major markets such as Asia and North America saw declines of 3.6% and 1.2% YoY, respectively, but growth in Europe and Latin America offset these declines with increases of 3.1% and 17.0% YoY [1]. - The management anticipates a decline in sales for 1Q25, projecting a fall by low single digits to mid single digits, influenced by weak US consumer sentiment despite a recovery in Asia [1][9]. - Organic sales and net profit are expected to grow by 1.5% and 1.8% YoY in FY25E, respectively, supported by ongoing share buybacks and progress in dual-listing [1][9]. Financial Summary - For FY24, the company reported revenue of US 3,731 million for FY25E, reflecting a growth of 4.0% [2][32]. - The net profit for FY24 was US 351.8 million in FY25E [2][32]. - The report indicates a decline in gross profit margin from 60.0% in FY24 to an expected 59.5% in FY25E, while the operating profit margin is projected to remain at 17.1% [29][32]. Market Performance - The company's stock has seen a decline of 14.1% over the past month and 14.3% over the past three months, indicating a challenging market environment [5]. - The current market capitalization stands at HK 128.1 million over the last three months [3]. Shareholding Structure - Major shareholders include Schroders PLC with 6.0% and Bank of New York Mellon Corporation with 5.4% [4]. E-commerce Performance - In the first two months of FY25, online sales on major platforms like TBTM and JD.com decreased by 7% and 18% YoY, while sales on Douyin surged by 200% YoY, indicating a shift in consumer preferences and effective marketing strategies [9][15].
新秀丽：Weak FY24 dragged by TUMI and American Tourister, 1Q25 sales to decline LSD-MSD-20250331