Samsonite Is Not Alone In Its Investment Banking Industry.

The census and Statistics Department of the Hongkong Special Administrative Region government released the latest retail sales figures. In October 2015, the total retail sales of Hongkong amounted to HK $37 billion 200 million (about 30 billion 712 million yuan), down 3% compared with the same period last year. The value of sales of jewellery, clocks and watches and gifts was down 17%, the most obvious.

The total retail sales value of the total retail sales in the first 10 months of 2015 dropped by 2.7% over the same period last year.

On the same day, the Bank of America, Merrill Lynch published a report that the Samsonite rating of luggage retailers was reduced from "buying" to "neutral", and the target price was reduced from HK $29.5 to HK $25 / share.

According to the reporter, since November, the retail price of Hong Kong stocks in the retail banking industry has been lowered, including Samsonite, Zhou Dafu, Sasa international, Liu Fu Group, Zhou Shengsheng, Hendry, Parkson group, L'OCCITANE and so on.

Hongkong's weak retail market has begun to be viewed cautiously by the capital market.

Chen Jinping, director of Research Department of Hongkong, Macao and Taiwan, predicts that in the next five years, the demand for Hongkong's retail industry will shift from the former high-end consumer goods to the mid-range market brand, and the consumption of local residents will occupy.

The share of sales will rise again, and the retail industry in Hongkong will depend less on the consumption of mainland tourists.

The global bank's concerns about travel safety will affect the sale of suitcases in the fourth quarter of this year and the first quarter of next year, the Bank of America Merrill Lynch report said.

The continued strength of the US dollar has increased the cost of visitors to the United States, and Samsonite's US sales have weakened since the second quarter of this year.

In addition, the attractiveness of Samsonite's valuation has declined, and the current P / E ratio is 19 times, close to the historical average.

Samsonite is not alone in its investment banking industry. Recently, the world's first tier investment banks have lowered the ratings and target prices of Hong Kong retail stocks.

Among them, CLSA, JP Morgan, HSBC, Goldman Sachs and Paris Bank of France coincidentally adjusted the target price of Zhou Dafu.

In its November 23rd report, the Bank of Paris said that Zhou Dafu was still in the most difficult period, and would speed up closing the poor profitable shops. This year's shop opening plan was difficult to meet the target. The rating was lowered from "buy" to "reduction", and the target price was reduced from HK $10.35 to HK $5.1.

CLSA even gave Zhou Dafu a "sell" rating with a target price of HK $5.70.

JP Morgan also expected in his November 25th report.

Sales of the same shop in the second half of the year will remain weak, mainly due to the continued decline in store passenger flow and the difficulty of selling high price commodities under the economic slowdown.

In view of the weak performance of the company as of the end of September, the 26% and 19% profit forecasts for the 2016 and 2017 fiscal year were cut down, and the target price was lowered from HK $7.4 to HK $6.

The other was seen by many investment banks.

The stock is Sasa international, with negative comments from Credit Suisse, JP Morgan and Goldman Sachs.

In November 25th, the Credit Suisse report pointed out that Sasa's interim results were in line with the earnings forecast issued earlier, mainly due to the reduction of free trade in Hong Kong and the narrowing of gross margin.

Based on the decline in gross margin and average price, the 2016-2018 year earnings per share 2-5% was lowered, and the target price was reduced from HK $1.8 to HK $1.75.

It says Hongkong's retail market is still challenging and expects to see further devaluation in the next few years and the group's revenue will be depressed.