Broker: KGI Securities (Singapore) Pte. Ltd.

Date of Report: January 8, 2026

Excerpt from KGI Securities report

Report Summary

• PC Partner Group Ltd (PCPG) is a leading manufacturer of video graphics cards (VGA cards), recently relocated its headquarters to Singapore and listed on SGX, with new manufacturing in Batam, Indonesia to diversify supply chain and reduce geopolitical risk.
• The company benefitted from NVIDIA’s RTX 50 Blackwell launch in 2025, driving strong gaming upgrade demand and a significant rebound in own-brand sales and profitability.
• PC Partner is expanding beyond gaming into AI-focused hardware, including GPU servers, handheld PCs, and medical-grade systems, leveraging close alignment with NVIDIA.
• The firm’s financials show a recovery after a downturn, returning to revenue growth, improved margins, and maintaining a strong balance sheet with net cash position.
• KGI initiates coverage with an OUTPERFORM rating and a 12-month price target of SGD\$1.73, suggesting a substantial upside from current levels.
• Valuation is based on a blended approach (DDM, DCF, and peer multiples), with dividend yield anchoring near-term value and upside potential tied to execution and market cycles.
• Key risks include cyclical demand, dependence on NVIDIA and memory supply, and exposure to geopolitical/trade policy changes; these are partly mitigated by strategic moves and operational flexibility.
• Peer comparison shows PC Partner trades at a significant discount to global hardware peers, with potential for valuation rerating as recovery continues.
• The company’s agile response to industry cycles and strategic diversification positions it well for future growth in both gaming and AI hardware markets.

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