VTECH Holdings makes and sells consumer electronics, such as toys, games, personal computers, telecommunications products and audio-video equipment. This time last year, Merrill Lynch put a buy on the stock, citing strong European and US learning-toy market share and a growing cordless-telephone business. It was excellent advice as 12 months ago, VTech shares traded at $13, now they are worth $19.45, having outperformed the Hang Seng Index by 45.9 per cent.