HK Stock Market Move | VTECH HOLDINGS (00303) rose by more than 10%, the AI toy market is expected to grow rapidly, the company closely watches the potential of AI toys.

VTECH HOLDINGS (00303) has seen its increase expand by over 10%, as of the time of writing, it has increased by 9.8% to 56.6 Hong Kong dollars with a trading volume of 1.1 billion Hong Kong dollars. Guotai Junan pointed out that the product performance under the integration of AI in the light industry is worth looking forward to. In terms of AI toys, products have added natural language processing and machine learning technology on the basis of voice interaction function, and interact with users in multiple dimensions such as sight/sound/touch through anthropomorphic, animal or IP emulation, achieving high interactivity, educational value, emotional value. It is reported that VTECH HOLDINGS is one of the world's largest toy manufacturers, and its chairman stated 23 years ago that it is "closely monitoring" the potential of using generative AI in its products. Citigroup pointed out in November last year that the sales of Gigaset, a company acquired by VTECH HOLDINGS, in the first half of the 2025 fiscal year were slightly below expectations. The management stated that the performance of Gigaset in October has improved compared to before the acquisition, so Gigaset has begun to break even. It is expected that VTECH HOLDINGS' revenue and gross profit for the 2025 fiscal year will grow year on year. At the same time, VTECH HOLDINGS believes that the acquisition of Gigaset can significantly increase its market share in the European residential DECT phone market from the current 40%+ to 70% in the next five years. The management also pointed out that even under the return of Trump to the White House, the company's capital expenditure remains at its lowest level, therefore the company is expected to maintain a dividend payout ratio of 90-100%.