PC Partner Group Limited FY2025 Results: Record Growth Driven by Strong VGA Card Sales

PC Partner Group Limited (“PC Partner”), a leading designer, manufacturer, and trader of electronics and PC parts, has released its unaudited condensed interim financial statements for the six months and full year ended 31 December 2025. The Group delivered a robust financial performance, underpinned by surging demand for NVIDIA’s new RTX 50 Series VGA cards, successful business migration to Singapore, and strategic expansion in manufacturing capacity.

Key Financial Metrics and Performance Table

*Inferred by dividing full-year EPS (1.27) by 2 for H1 and H2 split.

Historical Performance and Growth Drivers

• Revenue Surge: FY2025 revenue rose 38.4% YoY, driven by a 50% jump in VGA Card sales. The launch of NVIDIA’s RTX 50 Series, especially the flagship RTX 5090, led to a 68.9% increase in own brand VGA Card sales.
• Geographic Expansion: All regions posted significant revenue growth: APAC (+33.6%), North and Latin America (+47.1%), PRC (+26.6%), and EMEAI (+55.1%).
• Profitability: Net profit nearly doubled YoY (+90.2%), with gross profit margin improving from 9.5% to 10.2% owing to higher ASPs of new products and favourable product mix.
• Cash Position: Cash and bank balances increased to HK\$2.5 billion, supporting high dividends and future growth.

Dividends

• The Board has proposed a final dividend and a special dividend, each of SGD0.05 (approx. HK\$0.3) per share, totaling SGD0.10 (approx. HK\$0.60) per share for FY2025. This marks a substantial increase compared to the HK\$0.15 per share final dividend in FY2024.
• The total dividends proposed for FY2025 amount to approximately HK\$235 million, up from HK\$58 million in the previous year.

Exceptional Items and Noteworthy Events

• Tax Settlement: A one-off tax provision of HK\$63.4 million was recorded due to a settlement with Hong Kong IRD on offshore profit claims, impacting the effective tax rate in FY2025.
• Legal Contingencies: The Group faces a potential US\$25 million (HK\$196.7 million) US customs tariff liability relating to VGA card imports. As of the reporting date, US\$11.8 million has been paid and recorded as other receivable, pending litigation outcome.
• Corporate Actions: During the year, the Group delisted from the Hong Kong Stock Exchange and successfully migrated its primary listing and headquarters to Singapore, restoring flagship product access and improving strategic positioning.
• Manufacturing Expansion: New manufacturing plant in Indonesia and new headquarters in Singapore are now operational, supporting ongoing growth.
• No Share Buybacks or Dilution: No share buybacks, treasury shares, or share option grants occurred during the period.

Chairman’s Statement

“Looking ahead to 2026, the Group remain cautiously optimistic about challenges and new opportunities. Demand for high-bandwidth memory used in artificial intelligence (“AI”) data centers has far exceeded supply which resulted in major memory manufacturers cutting down the production of computer and graphic memory. Rising price on graphic memory has already prompted graphics card price increases. Due to the supply constraint, the Group foresee increase in pricing of VGA cards will continue to compensate for the decline in volume output throughout the year until the supply of graphic memory improves.

The Group participates in the NVIDIA Partner Network (“NPN”) as an Integration Partner, supporting NVIDIA’s ecosystem by delivering AI servers powered by NVIDIA’s innovative technologies. The Group has started building up its own infrastructure and capabilities on AI talents recruitment, new product development as well as manufacturing and operational setup to prepare for the business opportunities arising from the surging demand for AI hardware.”

The Chairman’s tone is cautiously optimistic, acknowledging macro headwinds on memory supply but expressing confidence in pricing power and future AI-related opportunities.

Balance Sheet and Cash Flow Highlights

• Net Assets: Increased to HK\$3.2 billion from HK\$2.86 billion YoY.
• Inventory: Rose sharply to HK\$1.69 billion (+100.9%) due to proactive GPU procurement and longer logistics, but inventory turnover days decreased, reflecting healthy sales flow.
• Trade Receivables: Up 61.5% to HK\$1.3 billion, with stable turnover days, in line with revenue growth.
• Borrowings: Increased to HK\$1.3 billion (from HK\$820 million), supporting inventory build-up for anticipated supply constraints.
• Operating Cash Flow: Strong at HK\$2.8 billion, up from HK\$1.95 billion last year.

Risks, Legal, and Other Corporate Events

• Legal Dispute: Ongoing US customs litigation for VGA card tariffs; outcome uncertain but partially provisioned.
• Tax Policy Change: One-off tax settlement with Hong Kong IRD and first-time application of Global Anti-Base Erosion (Pillar Two) rules.
• Management Changes: Notable resignations among senior management, disclosed in compliance with SGX listing rules.
• No Related-Party Transactions: No interested person transactions or related-party dealings.

Outlook

• Positive: Strong demand for high-end graphics cards, pricing power due to constrained memory supply, participation in AI hardware ecosystem, and a robust balance sheet.
• Risks: Legal uncertainty around US tariffs, elevated inventories and borrowings, and potential volatility from macroeconomic and supply chain shocks.

Conclusion and Investment Recommendation

Overall, PC Partner Group reported very strong FY2025 financial results, with record revenue, profit, cash flow, and a significant dividend hike. The outlook is positive, supported by ongoing AI trends, new product launches, and the company’s strategic shift to Singapore.

Investor Actions

• If you currently hold the stock: Consider maintaining or even adding to your position. The company’s robust fundamentals, strong dividend yield, and positive outlook outweigh the manageable risks at this stage. Monitor updates on the US tariff litigation and inventory management.
• If you do not currently hold the stock: Consider initiating a position, especially if seeking growth exposure to the AI and high-end gaming hardware cycle. However, be mindful of legal and supply-chain risks. Entering on pullbacks or after legal clarity may be prudent for risk-averse investors.

Disclaimer: This article is based strictly on the company’s published financial statements and does not constitute investment advice. Investors should consider their own financial situations and consult professional advisors before making investment decisions.

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