Citibank: maintain a "buy" rating on VTECH HOLDINGS (00303) with a target price of 65 Hong Kong dollars.

Citigroup released a research report stating that VTECH HOLDINGS (00303) target price is maintained at HK$65 and a "buy" rating. The company's revenue for the first half of the year ending September 2025 decreased by 4.5%, with net profit declining by 6.6% to US$87.4 million. The report noted that the company's revenue was lower than expected, mainly due to adjustments in sales at the acquired company Gigaset. The bank estimates that Gigaset's sales, which is acquired, contribute about 4% of VTECH HOLDINGS' overall sales. Management indicated that Gigaset's performance in October has improved compared to before the acquisition, so Gigaset has begun to break even. As a result, Citigroup has reduced its sales expectations for VTECH HOLDINGS but raised its gross profit expectations for the company. The earnings forecast for the years 2025-2027 is maintained, with an estimated dividend yield of approximately 10% for the 2025 fiscal year, thus maintaining a "buy" rating.