VTech +3.8% At Pre-Open: CS Ups To Outperform
2007/06/21 11:00
0948 [Dow Jones] VTech (0303.HK) +3.8% at HK$62.15 at pre-open, after strong FY results. Credit Suisse upgrades VTech to Outperform from Neutral as "results once again surprised the market", with FY07 net profit +42% at US$182.9 million (HK$1.427 billion), which 12% above its estimate. Also raises target price to HK$76.70 from HK$43.60; revises up FY08-FY09 earnings forecasts by 32-50%. "Management deserves credit for successfully controlling costs, with FY07 gross margin down marginally despite inflationary operating environment."