Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 26.65, maintaining the rating for the next six months [1]. Core Views - The report highlights that the company, Samsonite (01910), is experiencing growth driven by its main brand and leadership in the Asian market. The recovery in leisure and business travel is a significant factor contributing to this growth [1]. - The company reported Q1 2024 revenue of USD 860 million, a year-on-year increase of 0.9%, and a net profit of USD 83 million, up 12.3% year-on-year. The revenue growth is attributed to increased marketing investments and capturing opportunities in the global market, especially in Asia [1]. - The report anticipates continued strong growth in Asian tourism in 2024, supported by the recovery of outbound travel from China [1]. Summary by Sections Financial Performance - Q1 2024 revenue breakdown: Samsonite brand revenue was USD 440 million (up 3.7%, 51.2% of total), Tumi revenue was USD 194 million (down 0.3%, 22.5%), American Tourister revenue was USD 151 million (down 0.1%, 17.6%), and other revenues were USD 75 million (down 9.1%, 8.7%) [1]. - Regional revenue: Asia generated USD 340 million (up 3.3%), North America USD 285 million (up 0.3%), Europe USD 176 million (down 2.5%), and Latin America USD 59 million (up 0.2%) [1]. - Gross margin improved to 60.4%, up 2.4 percentage points, and net profit margin increased to 9.6%, up 1 percentage point [1]. Cost Management - The report notes an increase in sales expense ratio to 30% (up 2.4 percentage points), primarily due to depreciation of leased assets and increased store openings. Management expense ratio decreased to 7% (down 0.6 percentage points) due to strict cost management [1]. - Financial expense ratio decreased to 3.5% (down 1 percentage point), attributed to reduced non-cash expenses related to redeemable non-controlling interests and decreased foreign exchange losses [1]. Future Outlook - The company plans to invest 7.0% of net sales in marketing for 2024, focusing on product innovation and advertising to drive strong sales growth, particularly in the high-margin Asian region and Tumi brand [1]. - Adjusted revenue forecasts for 2024-2026 are USD 4.114 billion, USD 4.542 billion, and USD 5.067 billion, with net profits of USD 480 million, USD 530 million, and USD 596 million respectively [1].
新秀丽：主品牌及亚洲地区领跑增长