Update shared on 15 Dec 2025
Narrative Update
Analysts have nudged their price target on VTech Holdings slightly higher to approximately $70.19 per share, citing a modestly increased discount rate and a slightly richer assumed future price to earnings multiple, while leaving growth and margin expectations effectively unchanged.
What's in the News
- Issued earnings guidance indicating second half of financial year 2026 sales are expected to improve versus the first half, supported by stronger demand for electronic learning products and telecommunications products (company guidance).
- Reaffirmed that full year 2026 group revenue is still forecast to decline, with full year sales anticipated to be lower year on year despite an expected second half pickup (company guidance).
- Scheduled a board meeting for November 13, 2025 to approve publication of interim results for the six months ended September 30, 2025 and to consider payment of an interim dividend (company announcement).
Valuation Changes
- Fair Value Estimate: unchanged at approximately HK$70.19 per share, reflecting stable underlying assumptions for earnings, growth, and margins.
- Discount Rate: risen slightly from about 8.25 percent to 8.25 percent, indicating a marginally higher required return but no material shift in risk assessment.
- Revenue Growth: effectively unchanged at around 3.61 percent, suggesting no revision to medium term top line growth expectations.
- Net Profit Margin: stable at roughly 7.30 percent, implying that profitability assumptions remain consistent with prior forecasts.
- Future P/E: risen slightly from about 17.08x to 17.16x, indicating a modestly higher valuation multiple applied to expected future earnings.
Have other thoughts on Vtech Holdings?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.