Glonghui, May 22 | Citibank released a report. VTech (0303.HK) revenue for the first quarter was slightly lower than expected, falling 4.3% year-on-year to US$2.2 billion, while net profit rose 11.7% to US$167 million, slightly higher than forecast. Surprisingly, its dividend payout ratio remained at 99%, and was not reduced due to the capital required to acquire Gigaset. The dividend yield was over 10%. Based on more active management guidelines for FY2025, the bank raised its earnings forecast for the 2025-26 fiscal year by 2% to 4% and provided a profit forecast for the 2027 fiscal year, which reflected the acquisition of Gigaset, and the target price increased from HK$50 to HK$65. The bank quoted management as saying that although rising inflation and interest rates have affected consumer confidence in North America and Europe, the Group's three divisions are expected to achieve positive revenue growth in fiscal year 2025.