HK's electronic toy maker VTech hits near 2-wk low on weak full-year earnings

VTech Holdings

21/05/2019 04:16

** Shares of Vtech Holdings Ltd  0303.HK  fall as much as
3%to HK$68.20, their lowest since May 8, after the electronic
education toys and phones maker posts decline in yearly profit
    ** VTech, with North America as its largest market
contributing to 46% of its revenue, said its net profit for 12
months ended March fell 17% while total dividend dropped 16.3%
from a year ago  urn:newsml:reuters.com:*:nFWN22V02C
    ** Hong Kong-based company said a number of its contract
manufacturing services customers in the U.S. are affected by new
tariffs on Chinese imports, and some of them are making plans to
move part of their production from the company's manufacturing
facilities in China's Dongguan to Malaysia
    ** Co says it is accessing the impact of the new tariffs
which may potentially be applied to all Chinese imports, and it
is taking steps to mitigate the impact, including expanding its
newly acquired production facilities in Malaysia 
    ** As of Monday's close, the stock had risen 8.5% so far
this year
    ** Vtech has outperformed the Hang Seng Commerce & Industry
Index sector  .HSNC  by 6.8 percentage points in the past one
month
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
edges lower by 0.02% on Tuesday, while the benchmark index
 .HSI  gains 0.3%


 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)