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<Research>Citi Cuts VTECH HOLDINGS TP to HKD62, Rating Buy
Recommend 8 Positive 10 Negative 8 |
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According to Citi's research report, VTECH HOLDINGS (00303.HK)'s net profit for the fiscal year ended March fell by 5.9% to USD156.8 million, around 13% lower than the broker's forecast of USD179.6 million. The broker attributed the worse-than-expected results to (1) the inventory backlog before the US Independence Day pushing up manufacturing costs and direct labor expenses; and (2) the acquisition of Gigaset leading to higher operating expenses and tax rates. Accordingly, Citi lowered its FY26-27 earnings forecasts for VTECH HOLDINGS by 23-24% and introduced a forecast for FY28. It also cut its target price from HKD65 to HKD62 and maintained the Buy rating referencing historical averages and a dividend yield of 7-8% for FY26. AAStocks Financial News |
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