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SAMSONITE(1910)
Analysis¡G
Samsonite¡¦s third-quarter results for 2025 showed a clear improvement compared to the second quarter, mainly benefiting from optimized sales channels, effective cost control, and continued brand investment. For Q3 2025, the Group recorded net sales of US$872.7 million, representing a year-on-year decline of 0.6%. On a constant-currency basis, net sales fell 1.3%. The decline narrowed significantly from Q2¡¦s 4.8% (reported) and 5.8% (constant currency), supported by sustained global travel demand, strong new product launches, and high-profile marketing campaigns. Despite pressure from U.S. tariffs, the gross margin in Q3 rose 30 basis points from 59.3% a year earlier to 59.6%. This improvement was primarily driven by a favorable product mix resulting from higher contribution from the TUMI brand and the direct-to-consumer (DTC) channel, as well as successful tariff-mitigation measures in the U.S. enabled by the Group¡¦s strong procurement team, scale advantages, and close cooperation with long-term suppliers. Marketing expenses in Q3 amounted to US$53.0 million, down 4.9% year-on-year, reflecting the Group¡¦s adjustment of advertising spend to appropriate levels in different markets. As a percentage of net sales, marketing expenses accounted for 6.1%, down 20 basis points year-on-year.Profit attributable to equity holders in Q3 was US$73.5 million, representing year-on-year growth of 11% and quarter-on-quarter growth of 5%.
Although net sales of travel products fell 4.5% year-on-year, net sales of non-travel product categories rose 7.4% year-on-year, demonstrating the Group¡¦s ongoing efforts to expand beyond core travel-related categories and capture broader consumer demand. The proportion of non-travel product sales increased 270 basis points from 32.9% in the same period last year to 35.6%, driven by strong growth in non-travel products across multiple brands including Gregory, TUMI, and Samsonite, highlighting the significant long-term growth potential in non-travel categories.
Wholesale channel net sales declined 4.1%, mainly due to greater caution among traditional wholesale customers amid macroeconomic uncertainty and changes in trade policy, partially offset by growth in wholesale sales to online retailers. In contrast, the Group¡¦s DTC channel recorded sales growth of 4.7%, demonstrating greater resilience and underscoring the advantage of direct consumer connection. The proportion of DTC channel net sales rose 220 basis points from 39.8% last year to 42%. During Q3 2025, the Group added a net total of 7 company-operated retail stores. As of 30 September 2025, the total number of company-operated stores stood at 1,147.The Group believes that expanding and upgrading its retail store network has improved overall gross margins and enhanced brand image among end consumers.
Strategy¡G
Buy-in Price: $18.50, Target Price: $20.50, Cut Loss Price: $17.60
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BIDU-SW(9888)
Analysis¡G
In the third-quarter 2025 earnings report, total revenue for Q3 was 31.2 billion yuan, down 7% year-on-year. This quarter, Baidu disclosed its AI business revenue for the first time, with overall growth exceeding 50% year-on-year, making it the standout performer. Breaking it down: AI cloud revenue increased by 33% year-on-year; AI application revenue reached 2.6 billion yuan; AI-native marketing services performed particularly strongly, surging 262% year-on-year to 2.8 billion yuan. In the autonomous driving sector, Apollo Go provided 3.1 million rides globally in the third quarter, up 212% year-on-year, accelerating from the 148% growth in the second quarter. As of November, its cumulative global ride-hailing services had exceeded 17 million, ranking first in the world in scale.
Strategy¡G
Buy-in Price: $111.20, Target Price: $122.20, Cut Loss Price: $100.20
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FLAT GLASS (6865 HK) - FY25Q3 Saw Significant Improve, as the Anti-Excessive Competition Measures Strengthened
Investment SummarySignificant Performance Improvement in Q3 2025
According to the Company's announcement, in the first three quarters of 2025, Flat Glass Group Co., Ltd. recorded revenue of RMB12.464 billion (RMB, the same below), down 14.7% yoy, and net profit attributable to the parent company of RMB638 million, down 50.8% yoy. Specifically, the Company recorded revenue of RMB4.079/3.658/4.727 billion in Q1/Q2/Q3, down 28.8%/26.4%/up 21.0% yoy and flat/-10.3%/up 29.2% qoq; net profit attributable to the parent company amounted to RMB106/155/376 million, down 86.0%/79.0%/up 285.5% yoy and up 136.7%/46.0%/142.9% qoq, respectively. The results showed a trend of improvement quarter by quarter, with particularly notable growth in Q3.
Anti-Excessive Competition Measures Strengthened, Driving Recovery in Profitability
The performance improvement was mainly driven by the accelerated inventory de-stocking that led to a recovery in industry prosperity, easing of cost pressures, and the support from overseas business (accounting for approximately 30%).
In 2025, the photovoltaic (PV) industry intensified its efforts to curb excessive competition. As of July 2025, the cold-repair capacity in the PV glass industry reached 7,750 tonnes/day, reducing the domestic operating capacity to 89 thousand tonnes/day---a decline of approximately 22.4% from the peak of 114.7 thousand tonnes/day in November 2024. This accelerated capacity reduction strengthened supply-side constraints, which supported PV glass price stabilisation. In July, prices bottomed out, followed by a rebound in August. In September, the price of 2.0mm PV glass rose 18% month-on-month to RMB13--13.5/sq.m, recovering approximately 25% from July's RMB10.5/sq.m.
The Company's gross margin for the first three quarters was 15.1%, down 3.9 ppts yoy. In Q3, gross margin reached 16.8%, up 10.8 ppts yoy and 0.1 ppt qoq, benefiting from increased shipments driven by price recovery, a decline in soda ash costs, and support from high-margin overseas business. The Q3 period expense ratio stood at 6.9%, down 3.7 ppts yoy and 0.6 ppt qoq, mainly attributable to scale effects. Additionally, a reversal of asset impairment losses of RMB80 million in Q3 further boosted profit. As a result, the Q3 net profit margin attributable to the parent company rose to 7.96%, up 13.2 ppts yoy and 3.7 ppts qoq.
Industry Expected to Maintain Weak Balance in Q4
As of early November 2025, PV glass prices declined slightly due to weakening demand support, and industry inventories showed an increasing trend. The mainstream transaction price for 2.0mm PV glass was around RMB12.5--13/sq.m. However, considering the onset of the heating season and the resulting increase in natural gas prices, cost support is expected to limit the extent of price fluctuations. Benefiting from its advantages in technology, scale, capital, and clientele, the Company's cost advantages will become more prominent as market prices decline, potentially leading to an expansion in market share. The Company showed a clear downward trend in inventory in Q3. As of the end of Q3 2025, the Company's inventory balance stood at approximately RMB1.207 billion, down RMB751 million qoq, with a possible slight rebound in Q4. As of the end of September 2025, the Company's cumulative operating capacity totalled 16,400 tonnes/day, down 15% from the beginning of the year. The Company's two lines in Anhui (2,400 tonnes/day) and four lines in Nantong (4,800 tonnes/day) will commence operation based on market conditions. The two new production lines in Indonesia (3,200 tonnes/day) are expected to have a long construction period and will not commence production for at least two years. Investment ThesisDespite short-term pressure on industry prices, as a leading PV glass manufacturer, Flat Glass remains an industry leader in both scale and profitability. With continuous expansion of its overseas capacity, its profitability is expected to reach new heights. We expected the company's EPS for 2025/2026/2027 to be 0.41/0.68/0.95 yuan, respectively, and adjust the target price to HK$14.4, corresponding to a valuation ratios of 32.3/19.5/13.8x P/E and 1.4/1.3/1.2x P/B for the respective years, with an downgrade rating to "Accumulate." (Closing price as at 13 November 2025) P/E Band
Source: Wind, Phillip Securities Hong Kong Research Financials
(Closing price as at 13 November 2025) Click here to download PDF version...
| Recommendation on 20-11-2025 | | Recommendation | Accumulate (Downgrade) | | Price on Recommendation Date | $ 12.600 | | Suggested purchase price | N/A | | Target Price | $ 14.400 |
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