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VTech Holdings
(0303)
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Rating:58Neutral
Price Target:
HK$55.00
▼(-9.84% Downside)
Action:Reiterated
Date:05/23/26
The score is held up primarily by balance-sheet conservatism (declining debt and stable equity) and an income-supportive valuation (moderate P/E and very high dividend yield). Offsetting these positives are weakening fundamentals (multi-year revenue drift and lower FY2026 earnings) and a clearly weak technical setup with the stock trading well below major moving averages.
Positive Factors
Balance-sheet conservatism
Sustained deleveraging and a stable equity base materially reduce financial risk and preserve strategic optionality. Lower gross debt improves flexibility to fund R&D, absorb demand shocks in seasonal markets, and maintain payouts or pursue CMS contract investments without forcing asset sales.
Negative Factors
Multi-year revenue drift
A persistent top-line decline erodes scale economics and puts pressure on gross margins and fixed-cost absorption. Over several quarters this trend can weaken market position, reduce bargaining power with retailers and suppliers, and limit resources for product innovation and marketing.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet conservatism
Sustained deleveraging and a stable equity base materially reduce financial risk and preserve strategic optionality. Lower gross debt improves flexibility to fund R&D, absorb demand shocks in seasonal markets, and maintain payouts or pursue CMS contract investments without forcing asset sales.
Read all positive factors
VTech Holdings (0303) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$13.48B
Dividend Yield7.66%
Average Volume (3M)854.71K
Price to Earnings (P/E)12.8
Beta (1Y)0.51
Revenue Growth-6.75%
EPS Growth-14.48%
CountryHK
Employees22,200
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.53
Shares Outstanding253,557,460
10 Day Avg. Volume1,393,378
30 Day Avg. Volume854,711
Financial Highlights & Ratios
PEG Ratio-0.98
Price to Book (P/B)2.95
Price to Sales (P/S)0.94
P/FCF Ratio20.69
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.55
Revenue Forecast (FY)HK$2.10B
VTech Holdings Business Overview & Revenue Model
Company Description
Vtech Holdings Limited operates as a global entity, focusing on the conception, production, and worldwide distribution of a broad spectrum of electronic goods across North America, Europe, the Asia Pacific region, and other international territori...
How the Company Makes Money
VTech primarily makes money through three operating models. (1) Branded product sales: The company develops and sells its own branded consumer products, mainly electronic learning toys and related educational devices, as well as telecommunications...
VTech Holdings Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
76
Positive
Cash Flow
54
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.02B | 2.18B | 2.15B | 2.24B | 2.37B |
| Gross Profit | 659.92M | 686.80M | 634.90M | 633.70M | 669.10M |
| EBITDA | 229.23M | 243.80M | 230.70M | 237.00M | 268.80M |
| Net Income | 133.54M | 156.80M | 166.60M | 149.20M | 172.70M |
Balance Sheet | |||||
| Total Assets | 1.30B | 1.32B | 1.26B | 1.32B | 1.49B |
| Cash, Cash Equivalents and Short-Term Investments | 264.11M | 335.60M | 322.10M | 198.50M | 195.80M |
| Total Debt | 126.85M | 142.10M | 158.70M | 179.90M | 197.10M |
| Total Liabilities | 651.87M | 674.80M | 617.10M | 683.70M | 807.90M |
| Stockholders Equity | 647.57M | 644.40M | 645.20M | 634.70M | 678.80M |
Cash Flow | |||||
| Free Cash Flow | 92.21M | 195.80M | 322.80M | 210.90M | 103.70M |
| Operating Cash Flow | 123.38M | 225.30M | 355.20M | 238.80M | 139.60M |
| Investing Cash Flow | -31.17M | -29.10M | -54.40M | -27.50M | -32.00M |
| Financing Cash Flow | -177.05M | -188.30M | -171.10M | -191.20M | -249.80M |
VTech Holdings Technical Analysis
Neutral
61.00
Price Trends
55.71
Negative
58.88
Negative
60.17
Negative
Market Momentum
-0.93
Negative
51.27
Neutral
76.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0303, the sentiment is Neutral. The current price of 61 is above the 20-day moving average (MA) of 52.16, above the 50-day MA of 55.71, and above the 200-day MA of 60.17, indicating a neutral trend. The MACD of -0.93 indicates Negative momentum. The RSI at 51.27 is Neutral, neither overbought nor oversold. The STOCH value of 76.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0303.
VTech Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$45.14B | 18.54 | 8.70% | 0.63% | 16.62% | 42.86% | |
77 Outperform | HK$8.93B | 0.52 | 82.30% | 5.41% | 11.34% | 19.06% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | HK$13.48B | 12.80 | 21.16% | 7.66% | -6.75% | -14.48% | |
55 Neutral | HK$208.10B | 43.72 | 5.92% | 2.43% | 11.91% | -44.16% | |
54 Neutral | HK$3.02B | 78.86 | -11.77% | 0.24% | 0.94% | ― | |
47 Neutral | HK$13.76B | 35.19 | 3.51% | ― | 16.73% | ― |
* Technology Sector Average
HK:0303
VTech Holdings
53.20
-0.96
-1.78%
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-45.66%
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18.51
7.46
67.47%
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Plover Bay Technologies Ltd.
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VTech Holdings Corporate Events
VTech Declares Final Dividend of USD 0.36 per Share for FY2026
May 21, 2026
VTech Holdings has declared a final ordinary dividend of USD 0.36 per share for the financial year ended 31 March 2026, subject to shareholder approval on 23 July 2026. The dividend will be paid on 7 August 2026, with the ex-dividend date set for ...
VTech Margins Improve as Revenue and Profit Decline in 2025/26
May 21, 2026
VTech Holdings reported full-year revenue of US$2,027.5 million for the year ended 31 March 2026, representing a 6.9% decline as softer sales weighed on the top line. Despite lower revenue, the company improved its gross profit margin from 31.5% t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.