Hong Kong-listed VTech Holdings mainly engages in the design, manufacture and distribution of electronic consumer products. The company is also the largest supplier of cordless telephones to the United States market. In a recent upbeat report, BNP Paribas Equities said VTech was able to achieve a small profit of US$11 million this financial year after a successful restructuring effort last year. Next year would also be a good year, BNP said, as management had guided the company towards strong earnings recovery, with net profit expected to increase to US$15 million. 'The robust performance is largely due to higher margins at the contract manufacturing and telecommunication divisions,' BNP said. VTech had also not been affected by the US port lockout as it had been preparing for it since July, it said. BNP retained its 'outperform' stance, and increased VTech's share target price to HK$9.80, up from HK$6.60. Graphic: NOW27gwz