Elevator Pitch
I assign a Neutral rating to Hong Kong-listed electronic manufacturing service provider Vtech Holdings Limited (VTKLY) (VTKLF) [303:HK].
Vtech Holdings' dividends per share declined -21% YoY in FY2020, and the dividend payout ratio was cut from 99% in FY2019 to 70% in FY2020, with the aim of conserving cash in uncertain times like these, but this is also reflective of a bleak outlook for the company. Vtech Holdings is facing both cyclical and structural headwinds as a result of the coronavirus pandemic. Lockdown measures in various parts of the