Alex Feng and Jason Quan from Rome Capital Limited join the podcast to discuss their thesis on Samsonite International (1910.HK), a leader in the global lifestyle bag industry and the world's best-known and largest travel luggage company.
Alex Feng's write-up on Samsonite: https://alexfeng.substack.com/p/samsonite-1910-hk-another-homecoming
Chapters:
[0:00] Introduction + Episode sponsor: Ycharts
[1:51] Alex Feng, Jason Quan and Rome Capital's backgrounds
[3:15] Overview of Samsonite and why it's interesting to Alex and Jason
[6:00] What is the average market participant missing with Samsonite
[9:25] Why is Samsonite valuation a "cheap" multiple (in Rome Capital's opinion); why Samsonite a "A" business and not a "C" business; pricing power / consumer awareness
[17:02] How important is Samsonite's warranty on their products / supply chain
[21:18] Samsonite's dual listing plan / does Alex and Jason think that simply re-listing to the US can re-rate the shares
[29:00] Instead of dual-listing, why not focus on buybacks
[33:40] What happened to the private equity bid; history with CBC back in 2007
[36:13] Wholesale partners, is that one of their competitive advantages / how much does advertising really drive demand and consumption
[39:47] Barriers to entry - what is the risk here with new luggage brands entering the market
[45:49] Final thoughts on Samsonite
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