• Founded in 1997, PC Partner Group, which recently achieved a primary listing on the Singapore Exchange, has been around long enough to see plenty of cycles in the computer industry. • KGI Securities has just published an initiation report on the stock, the first to do so, with a target price of $1.73.
• PC Partner makes its living from producing and selling video graphics array (VGA) cards -- products used in serious gaming, which make up the bulk of its business (over 90% of revenue in 1HFY25). The rest comes from motherboards and mini-PCs, making it a one-of-a-kind business on the SGX. • Notably, the VGA cards incorporate GPUs from the world's biggest GPU (graphics processing units) producer Nvidia, its major supplier. • In past years, PC Partner's financial performance has been volatile and cyclical, mainly due to the timing of the release of upgraded hardware from Nvidia. Currently, another challenge looms: Because high-speed memory is a critical component of every graphics card, surging prices impact the group’s cost structure and demand for its products. • Read more below .... |
|||||
At the COMPUTEX 2025 show in Taipei in May 2025, Jensen Huang, CEO of Nvidia, dropped by the booth of Zotac, a brand of PC Partner. Nvidia is a major GPU supplier to PC Partner. Photo: Zotac
Excerpts from KGI Securities report
Analyst: Chong Ting Shuo
| Riding the Blackwell cycle with a de-risked Southeast Asia footprint |
| • Blackwell ramp restores growth and brand momentum. We see a clean volume catalyst as NVIDIA’s RTX 50 Blackwell launch lifted gaming upgrade demand in 1H25 and should remain constructive into 2H25. Own-brand revenue accelerated with the Group regaining access to the top tier RTX 5090 after the Singapore HQ move and SGX secondary listing, driving a 60.3% jump in branded sales and a 1H25 revenue print of HK$6,355.3M with EPS at HK$0.645. • China Plus One execution improves resilience and market access. Management has executed a tangible footprint shift with HQ relocation to Singapore, an SGX listing, and a new Batam plant. This expands Southeast Asia capacity and provides flexibility to navigate tariffs and export controls, including rapid rerouting of US bound assembly outside China after the 4 Feb 2025 tariff action. We think this configuration reduces policy friction risk while preserving allocation and customer reach. |
• Expanding beyond gaming into AI-adjacent compute. Beyond VGA Cards, the pipeline includes GPU servers for AI and ML, handheld PCs, and medical-grade systems.
Coupled with longstanding partnerships with NVIDIA and entry into the NVIDIA Partnership Network in 1H25, we see scope to broaden mix, deepen attach, and smooth cyclicality as AI PC adoption builds.
• We initiate coverage of PC Partner Holdings Ltd with an OUTPERFORM rating, reflecting a bullish outlook on the company’s recovery and growth prospects. Our 12- month price target is SGD$1.73.
Jensen Huang's autograph on a Zotac flagship product. Photo: Zotac
| 1H25 results and key takeaways |
PC Partner delivered a clean reacceleration with the RTX 50 Blackwell launch driving upgrades and mix. 
Gary Lau, CFO of PC Partner.Revenue printed about HK$6,355M and EPS was HK$0.645, with own-brand sales up about 60% as access to top-tier SKUs resumed. Inventory stepped up to support 2H sell-through and the Indonesia ramp, consistent with stronger allocation and higher ASP content.
Operational discipline improved as sell-through tracked well into the summer, positioning 2H25 for sequential growth and margin stability and a 1H25 revenue print of HK$6,355.3M with EPS at HK$0.645.
| Cycle and end-market setup |
We expect a constructive gaming cycle through 1H2026 as NVIDIA’s Blackwell stack catalyzes premium upgrades, AI PC attach improves, and channel inventories normalize.
Allocation should support volume, while richer ASPs and mix toward higher-end boards underpin gross margin. Seasonality and a deeper holiday pipeline point to a stronger 2H25, with upside if attach on AI-enhanced SKUs exceeds historical norms.
|
Risks: Allocation and cycle risk from NVIDIA delays may cap volume and mix.
Export controls with slow Batam ramp could lift costs and stretch cash.
However, we expect supplyside execution risk to be mitigated with established NVIDIA partnership in 1H2025 and new Singapore HQ to reinforce presence and focus on Southeast Asia ramp-up
→ The KGI report is here.
→ See also: PC PARTNER: This Company Rode Nvidia Wave in 1H, Just Achieved Primary Listing on SGX
