Rome Capital's Alex Feng and Jason Quan making the case for Samsonite $1910.HK

Jul 29, 2024

Guest

Jason Quan

Guest

Alex Feng

Alex Feng and Jason Quan from Rome Capital Limited dive into the intriguing world of Samsonite, a giant in the luggage industry. They explore why Samsonite's valuation is considered a bargain and discuss the brand's strong market positioning and pricing power. Insights on the importance of warranties and how they foster customer loyalty are shared. They also touch on competitive advantages and the challenges posed by new entrants. Lastly, they consider the potential benefits of dual listings and buybacks as strategies for value enhancement.

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Episode notes

Intro

00:00 • 3min

Investing in Samsonite: A Turnaround Story

03:00 • 11min

The Impact of Microscaling and Warranties in the Luggage Industry

13:52 • 4min

Navigating Market Dynamics and Valuation Challenges

17:23 • 15min

The Complexities of Privatization and Stock Fluctuations

32:12 • 2min

Navigating the Luggage Market: Brand Strategies and Challenges

34:15 • 15min

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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