VTech Holdings (0303) AI Stock Analysis

• Market Cap: HK$15.29B
• Dividend Yield: 7.91%
• Average Volume (3M): 530.30K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.41
• Revenue Growth: 1.05%
• EPS Growth: -6.29%
• Country: HK
• Employees: 22,200
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 2.13
• Shares Outstanding: 253,109,130
• 10 Day Avg. Volume: 676,438
• 30 Day Avg. Volume: 530,302
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: HK$65.00 ▲(9.98% Upside)

VTech Holdings' strong financial performance and attractive valuation are significant strengths, making it appealing for value and income investors. However, technical indicators suggest bearish momentum, which could pose short-term risks.

VTech Holdings Business Overview & Revenue Model

Company Description

VTech Holdings Limited is a Hong Kong-based global leader in electronic learning products and telecommunications. The company operates primarily in two segments: Electronic Learning Products, which focuses on educational toys and gadgets for children, and Telecommunications, which includes cordless phones and other communication devices. VTech's core offerings include interactive learning systems, educational toys, and a range of consumer and business communication solutions.

How the Company Makes Money

VTech generates revenue through several key streams. The Electronic Learning Products division is a significant contributor, where the company sells a wide array of educational toys, gaming devices, and interactive learning tools primarily to children and their parents. This segment benefits from seasonal sales patterns, particularly during holiday seasons. The Telecommunications division provides an additional revenue source, offering a variety of products such as cordless phones and video baby monitors. VTech's revenue model is bolstered through partnerships with major retailers and educational institutions, expanding its market reach. Furthermore, the company invests in research and development to innovate and enhance its product offerings, which helps maintain competitive pricing and fosters brand loyalty among consumers.

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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.18B	2.15B	2.24B	2.37B	2.37B
Gross Profit	686.80M	634.90M	633.70M	669.10M	726.60M
EBITDA	243.80M	230.70M	237.00M	268.80M	325.90M
Net Income	156.80M	166.60M	149.20M	172.70M	230.90M
Balance Sheet
Total Assets	1.32B	1.26B	1.32B	1.49B	1.45B
Cash, Cash Equivalents and Short-Term Investments	335.60M	322.10M	198.50M	195.80M	343.80M
Total Debt	142.10M	158.70M	179.90M	197.10M	206.10M
Total Liabilities	674.80M	617.10M	683.70M	807.90M	714.50M
Stockholders Equity	644.40M	645.20M	634.70M	678.80M	731.10M
Cash Flow
Free Cash Flow	195.80M	322.80M	210.90M	103.70M	232.30M
Operating Cash Flow	225.30M	355.20M	238.80M	139.60M	280.30M
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: Neutral
• Last Price: 59.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 59.1 is below the 20-day moving average (MA) of 62.07, below the 50-day MA of 62.27, and above the 200-day MA of 54.25, indicating a neutral trend. The MACD of -0.55 indicates Positive momentum. The RSI at 45.83 is Neutral, neither overbought nor oversold. The STOCH value of 25.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1523	76 Outperform	HK$7.10B	22.40	78.00%	4.71%	14.08%	15.81%
0303	70 Outperform	HK$15.29B	12.50	24.32%	7.91%	1.05%	-6.29%
2018	63 Neutral	$45.82B	19.63	9.39%	0.60%	30.73%	90.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2038	56 Neutral	HK$13.57B	108.93	1.16%	―	3.21%	―
6869	55 Neutral	$49.40B	43.26	5.20%	0.74%	12.10%	-44.33%
2342	54 Neutral	$8.84B	―	-10.70%	0.20%	-13.99%	-32.74%