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Earnings fears take toll on VTech's share value

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Shares in VTech Holdings have fallen 13.55 per cent in a fortnight in part because of fears the consumer-electronics maker's second-half earnings would not match strong gains in the first half.

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VTech was the darling of the stock market last year, rising 47.92 per cent against a 6.28 per cent drop in the Hang Seng Index over the same period.

Yesterday, VTech shares ended 1.29 per cent lower at $30.60, compared with a high of $35.40 on January 6.

Most analysts still have to buy recommendations on the stock, but there have been rumours that sales of its high-frequency cordless telephones in the post-Christmas reordering period have been unable to match their phenomenal first-half performance.

VTech finance managing director William Ho Mook-lam said there had been no significant drop in sales in the second half.

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The company had encountered increased competition in the post-Christmas restocking period, he said.

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