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Yet Another Value Podcast
Rome Capital's Alex Feng and Jason Quan making the case for Samsonite $1910.HK
Jul 29, 2024
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.
48:55
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Quick takeaways
- Samsonite's historical low price-to-earnings ratio reflects market sentiment towards Hong Kong-listed firms despite its strong market position and recovery prospects.
- The company's strategic shift towards a dual listing aims to attract renewed investor interest, enhancing its valuation and capitalizing on a booming travel industry.
Deep dives
Overview of Samsonite and its Market Position
Samsonite is a global leader in the luggage industry, focusing on high-quality travel products through several key brands, including its premium line and American Tourister for mid-range consumers. The company has successfully navigated the challenges posed by the COVID-19 pandemic by closing underperforming stores and significantly improving sales per location and profit margins. Despite being a dominant player, the company's price-to-earnings ratio has fallen to around nine due to poor market sentiment towards Hong Kong-listed firms. An upcoming secondary listing in the U.S. or Europe is expected to attract renewed investor interest, potentially offering significant upside from its currently undervalued stock price.
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Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode