According to the Wisdom Wealth APP, Vtech Holdings (00303) rose more than 4% in the afternoon, up 4.14% to HKD 56.55, with a turnover of HKD 22.3866 million at the time of publication.

In terms of news, Vtech Holdings previously released its annual results, with the group's revenue of USD 2.1457 billion, a year-on-year decrease of 4.3%; shareholders' net profit was USD 166.6 million, a year-on-year increase of 11.7%. Citigroup published a report that Vtech Holdings' first-quarter revenue was slightly lower than expected, but net profit was slightly higher than forecast. It is surprising that its dividend payout ratio maintained at 99%, and did not decrease due to the funds needed for the acquisition of Gigaset. The dividend yield was over 10%, and reiterated a 'buy' rating.

The bank quoted management as saying that despite the impact of rising inflation and interest rates on consumer confidence in North America and Europe, it is expected that the three divisions of the group will achieve positive growth in revenue for the fiscal year 2025. Based on the more positive management guidance of fiscal year 2025, the bank raised its profit forecast for fiscal years 2025-26 by 2% to 4%, and provided a profit forecast for fiscal year 2027, which reflected the acquisition of Gigaset. The target price has been raised to HKD 65 from HKD 50.