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VTech Holdings Limited (HK:0303)
:0303
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VTech Holdings (0303) AI Stock Analysis

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HK

VTech Holdings

(OTC:0303)

Rating:74Outperform
Price Target:
HK$65.00
▲(10.64%Upside)
The overall stock score reflects VTech Holdings' strong financial position and attractive valuation, offset by technical indicators suggesting potential overbought conditions. Financial performance and valuation are the most significant factors contributing to the score.

VTech Holdings (0303) vs. iShares MSCI Hong Kong ETF (EWH)

VTech Holdings Business Overview & Revenue Model

Company DescriptionVtech Holdings Limited designs, manufactures, and distributes electronic products in North America, Europe, the Asia Pacific, and internationally. The company offers electronic learning toys for infancy, toddler, and preschool under the Vtech and LeapFrog brands; platform products; and learning programs. It also provides telecommunication products, such as residential and commercial phones under the VTech; and other telecommunication products, including baby monitors, cordless handsets, and integrated access devices. In addition, the company offers contract manufacturing services for customers in the areas of professional audio equipment, hearables, Internet of Things, and medical and health products. Further, it provides property holding, and group financing and procurement services; develops broadband connectivity software; sells telecommunication and electronic products; and manufactures plastic products. The company was founded in 1976 and is headquartered in Tai Po, Hong Kong.
How the Company Makes MoneyVTech Holdings generates revenue through three primary segments: Electronic Learning Products (ELPs), Telecommunication Products, and Contract Manufacturing Services (CMS). The ELP segment focuses on designing and selling educational toys and learning devices for children, which contributes significantly to the company's revenue. The Telecommunication Products segment offers a variety of wireless communication devices, such as cordless phones and other communication accessories, catering to both consumer and business markets. The CMS segment provides manufacturing services to third-party clients, supporting a diverse range of industries including medical, automotive, and commercial products. Partnerships with well-known brands and a strong retail distribution network enhance VTech's market presence and contribute to its revenue streams.

VTech Holdings Financial Statement Overview

Summary
VTech Holdings exhibits a solid financial position with steady revenue and operational efficiency. However, slight pressure on net profit margins and increased liabilities should be monitored.
Income Statement
75
Positive
VTech Holdings has demonstrated stable revenue performance with a slight increase in the latest year compared to the previous year. Gross profit margin is healthy, consistent with the industry, while net profit margin indicates a slight dip in profitability. EBIT and EBITDA margins remain strong, showcasing efficient operational management despite minor fluctuations over the years.
Balance Sheet
70
Positive
The balance sheet shows a solid equity base with a manageable debt-to-equity ratio, indicating sound financial leverage. Return on Equity is satisfactory, reflecting decent profitability for shareholders. The equity ratio is robust, highlighting financial stability, though there has been a slight increase in liabilities over time.
Cash Flow
80
Positive
Cash flow analysis reveals strong operating cash flow, surpassing net income, which signifies excellent cash generation capabilities. Free cash flow is positive and consistent, although there was a decrease in free cash flow growth rate recently. This stability in cash flow supports ongoing investments and debt servicing.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue2.18B2.15B2.24B2.37B2.37B
Gross Profit686.80M634.90M633.70M669.10M726.60M
EBITDA243.80M230.70M237.00M268.80M325.90M
Net Income156.80M166.60M149.20M172.70M230.90M
Balance Sheet
Total Assets1.32B1.26B1.32B1.49B1.45B
Cash, Cash Equivalents and Short-Term Investments335.60M322.10M198.50M195.80M343.80M
Total Debt142.10M158.70M179.90M197.10M206.10M
Total Liabilities674.80M617.10M683.70M807.90M714.50M
Stockholders Equity644.40M645.20M634.70M678.80M731.10M
Cash Flow
Free Cash Flow195.80M322.80M210.90M103.70M232.30M
Operating Cash Flow225.30M355.20M238.80M139.60M280.30M
Investing Cash Flow-29.10M-54.40M-27.50M-32.00M-47.80M
Financing Cash Flow-188.30M-171.10M-191.20M-249.80M-155.70M

VTech Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price58.75
Price Trends
50DMA
55.12
Positive
100DMA
54.51
Positive
200DMA
53.57
Positive
Market Momentum
MACD
1.17
Negative
RSI
71.03
Negative
STOCH
93.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0303, the sentiment is Positive. The current price of 58.75 is above the 20-day moving average (MA) of 57.14, above the 50-day MA of 55.12, and above the 200-day MA of 53.57, indicating a bullish trend. The MACD of 1.17 indicates Negative momentum. The RSI at 71.03 is Negative, neither overbought nor oversold. The STOCH value of 93.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0303.

VTech Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$14.80B12.0924.32%4.52%1.05%-6.29%
57
Neutral
$906.09M14.06-16.47%3.42%10.48%-36.32%
$6.04B23.718.06%0.61%
$707.96M-18.09%1.29%
$1.03B-1.35%
$3.03B11.706.68%2.27%
81
Outperform
HK$6.78B22.8071.58%3.52%23.50%34.72%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0303
VTech Holdings
58.75
6.84
13.18%
AACAF
AAC Technologies Holdings
4.94
0.85
20.78%
COBJF
Comba Telecom Systems Holdings
0.21
0.09
75.00%
FXCXD
FIH Mobile
0.96
-0.12
-11.11%
YZOFF
Yangtze Optical Fibre and Cable Joint Stock Co
1.64
0.63
62.38%
HK:1523
Plover Bay Technologies Ltd.
6.15
2.60
73.24%

VTech Holdings Corporate Events

VTech Holdings Approves Key Resolutions at 2025 AGM
Jul 15, 2025

VTech Holdings Limited held its 2025 Annual General Meeting on July 15, 2025, where all proposed resolutions were approved by shareholders. Key resolutions included the re-election of directors, approval of a final dividend, re-appointment of KPMG as auditors, and granting mandates for share repurchase and issuance. These decisions reflect the company’s strategic direction and commitment to maintaining shareholder value and operational transparency.

The most recent analyst rating on (HK:0303) stock is a Buy with a HK$62.00 price target. To see the full list of analyst forecasts on VTech Holdings stock, see the HK:0303 Stock Forecast page.

VTech Holdings Announces 2025 AGM with Key Resolutions
Jun 12, 2025

VTech Holdings Limited has announced its 2025 Annual General Meeting (AGM) to be held on July 15, 2025, in Hong Kong. The AGM will cover several key agenda items, including the consideration of audited financial statements, the declaration of a final dividend, the re-election of directors, and the re-appointment of KPMG as the auditor. Additionally, shareholders will vote on resolutions regarding the repurchase of shares and the issuance of new shares, which could impact the company’s capital structure and shareholder value.

The most recent analyst rating on (HK:0303) stock is a Buy with a HK$62.00 price target. To see the full list of analyst forecasts on VTech Holdings stock, see the HK:0303 Stock Forecast page.

VTech Holdings Announces Final Dividend for FY2025
May 14, 2025

VTech Holdings Limited has announced a final cash dividend of USD 0.44 per share for the financial year ending March 31, 2025. The dividend will be paid in USD, with eligible Hong Kong shareholders receiving an equivalent amount in HKD, based on the exchange rate provided by The Hongkong and Shanghai Banking Corporation Limited on July 17, 2025. The dividend payment is scheduled for July 30, 2025, following shareholder approval on July 15, 2025. This announcement reflects VTech’s commitment to returning value to its shareholders and may impact investor sentiment positively.

VTech Holdings Reports Revenue Growth Amid Profit Decline
May 14, 2025

VTech Holdings Limited reported a 1.5% increase in group revenue to US$2,177.2 million for the fiscal year ending March 31, 2025, despite a 5.9% decrease in profit attributable to shareholders. The company successfully integrated Gigaset, which contributed to its revenue growth, and maintained a strong financial position with a gross profit margin increase to 31.5%. However, the full-year dividend per share decreased by 6.2%. VTech’s vertical integration and global manufacturing footprint have enabled it to remain resilient amidst evolving tariff situations.

VTech Holdings Announces Upcoming Board Meeting for Final Results Approval
Apr 30, 2025

VTech Holdings Limited has announced a board meeting scheduled for May 14, 2025, to approve the publication of its final results for the fiscal year ending March 31, 2025, and to consider the payment of a final dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting its financial standing and investor relations.

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.Date of analysis: Jul 08, 2025