External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>We untangle the “household excess saving” enigma.</li><li>Instead of a silver bullet, we consider it a status-quo in which consumers are confident enough to spend (or invest) beyond their pre-pandemic budgets by tapping into their savings accumulated during the pandemic, after they first normalize their spending to prepandemic level.</li><li>In other words, we believe the use of “excess saving” would predominantly kick-in upon a full-fledged consumption recovery. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We untangle the “household excess saving” enigma.Instead of a silver bullet, we consider it a status-quo in which consumers are confident enough to spend (or invest) beyond their pre-pandemic budgets by tapping into their savings accumulated during the pandemic, after they first normalize their spending to prepandemic level.In other words, we believe the use of “excess saving” would predominantly kick-in upon a full-fledged consumption recovery. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Consumer – From Reopening to Recovery

Equity Bottom-Up

<ul><li>Samsonite delivered mixed performance in FY24 with in-line revenue, yet NP missed CMBI estimate by 8%. Overall net sales (organic) were flat in both FY24 and 4Q24 (-0.2%/+1% YoY) at US$ 3.6bn on a high base in 2023 revenge travel theme.</li><li>Major markets Asia and North America retreated 3.6%/1.2% YoY, but were offset by Europe &amp; Latin America markets that grew 3.1%/17.0% YoY.</li><li>Net profit was down 13% YoY to US$ 346mn mainly due to 1) higher selling expense ratio from revenue shrink and new store opening (+67 in FY24), and 2) fewer impairment reversals in FY23. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Samsonite delivered mixed performance in FY24 with in-line revenue, yet NP missed CMBI estimate by 8%. Overall net sales (organic) were flat in both FY24 and 4Q24 (-0.2%/+1% YoY) at US$ 3.6bn on a high base in 2023 revenge travel theme.Major markets Asia and North America retreated 3.6%/1.2% YoY, but were offset by Europe &amp; Latin America markets that grew 3.1%/17.0% YoY.Net profit was down 13% YoY to US$ 346mn mainly due to 1) higher selling expense ratio from revenue shrink and new store opening (+67 in FY24), and 2) fewer impairment reversals in FY23. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Samsonite (1910 HK) - Weak FY24 Dragged by TUMI and American Tourister...

<ul><li>The company reported 2Q24 results below market expectations, with net sales down 1.7% YoY (+1.6% in constant currency) given softened consumer demand in China and North America, and increased competition in India.</li><li>The GPM remained high at 60.0%, supported by channel and product mix optimization, Adjusted net profit declined by 3.4% YoY.</li><li>The company has lowered its 2024E revenue guidance while maintaining its margin expectation. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The company reported 2Q24 results below market expectations, with net sales down 1.7% YoY (+1.6% in constant currency) given softened consumer demand in China and North America, and increased competition in India.The GPM remained high at 60.0%, supported by channel and product mix optimization, Adjusted net profit declined by 3.4% YoY.The company has lowered its 2024E revenue guidance while maintaining its margin expectation. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Samsonite (1910 HK) - 2Q24 Results Slowed by Soft Demand, Guidance Revised Downward

<ul><li>Our NDR with Samsonite’s management indicated a rather stable 4Q and hence a maintained full-year 2023 guidance with high-teen sales increase year-overfour-year (Yo4Y), 59%+ gross margins and 19%+ adjusted EBITDA margins.</li><li>Specifically, for the December-quarter, management preliminarily commented that 1) cFX sales growth Yo4Y would be somewhere between mid-to-high teen, excluding Russia &amp; Speck; 2) adj. EBITDA margin will be slightly below 3Q23, but will remain close to 19%, 3) A&amp;P ratio will hover between 6.5-7.0% of sales, and 4) adverse F/X impact will become more apparent, especially that from Turkey and Argentina.</li><li>We believe these should match investors’ expectation and help Samsonite circumvent any de-rating risks entering the March reporting season. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Our NDR with Samsonite’s management indicated a rather stable 4Q and hence a maintained full-year 2023 guidance with high-teen sales increase year-overfour-year (Yo4Y), 59%+ gross margins and 19%+ adjusted EBITDA margins.Specifically, for the December-quarter, management preliminarily commented that 1) cFX sales growth Yo4Y would be somewhere between mid-to-high teen, excluding Russia &amp; Speck; 2) adj. EBITDA margin will be slightly below 3Q23, but will remain close to 19%, 3) A&amp;P ratio will hover between 6.5-7.0% of sales, and 4) adverse F/X impact will become more apparent, especially that from Turkey and Argentina.We believe these should match investors’ expectation and help Samsonite circumvent any de-rating risks entering the March reporting season. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Samsonite (1910 HK) – 4Q Preview: Sales/Adj. EBITDA +18%/+36%

<ul><li>Consistent to our preview, Samsonite 3Q revenue/adjusted net profit kicked in at US$958mn/126mn, up +21.2%/93.9% YoY.</li><li>The results were mainly driven by 29.3% TUMI brand sales, with China strength, on a regional basis, continued to outpace the average.</li><li>Gross margin of 59.6% and adjusted EBITDA margin of 20.3% both reached record highs. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Consistent to our preview, Samsonite 3Q revenue/adjusted net profit kicked in at US$958mn/126mn, up +21.2%/93.9% YoY.The results were mainly driven by 29.3% TUMI brand sales, with China strength, on a regional basis, continued to outpace the average.Gross margin of 59.6% and adjusted EBITDA margin of 20.3% both reached record highs. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Samsonite (1910 HK) – 3Q Rev/NP +21%/94%; Low-Teen Growth for 2024E

United States

Samsonite Group S.A. is a global leader in the lifestyle bag industry, specializing in the design, manufacture, sourcing, and distribution of luggage, business and computer bags, outdoor and casual bags, and travel accessories under various brands including Samsonite, Tumi, and American Tourister. The company was founded in 1910 in Denver, Colorado, and its registered office is in Luxembourg.

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Samsonite (1910 HK)

China Consumer – From Reopening to Recovery

In other words, we believe the use of “excess saving” would predominantly kick-in upon a full-fledged consumption recovery.

CMB International