Glory Harmonica November 8th | Lyon released research reports stating that Samsonite will announce its third-quarter performance next Wednesday (13th), predicting that due to the weak performance in the Asian and North American markets, the group's third-quarter sales are estimated to decline by 3% year-on-year at constant exchange rates. By brand division, it is expected that Samsonite may continue to slightly outperform Tumi, while America Tourister faces the greatest pressure, with higher-profit Tumi and softness in the Asia-Pacific region, along with possible larger discounts from the group, dragging EBITDA profit margin down to 17.5%. Looking ahead to the second half of the year, Lyon stated that there are no signs of recovery yet and believes that operational leverage pressure will continue in the fourth quarter. The full-year sales are expected to remain flat year-on-year at constant exchange rates, and the full-year EBITDA profit margin is expected to drop to 18.2% year-on-year. The target price is lowered from HK$27 to HK$22, but due to its relatively low valuation, the "outperform the market" rating is still maintained. Lyon believes that Samsonite's sales can return to normal after some time, with average compound annual growth reaching mid-single-digit percentage between 2024 and 2026.