Broker Name: KGI Securities (Singapore) Pte. Ltd.
Date of Report: March 18, 2026
Excerpt from KGI Securities (Singapore) Pte. Ltd. report.
Report Summary:
- PC Partner Group’s FY25 revenue exceeded expectations, driven by strong growth in premium branded VGA cards and improved gross margins, making it one of the company’s best years on record.
- Management is shifting focus from volume to profitability, emphasizing premium products and reducing low-end models, with a positive outlook for FY26 revenue and margins despite industry supply constraints and rising component costs.
- The target price is raised to S\$2.54 on improved earnings quality and stronger dividend potential, balanced by a more conservative free cash flow approach that excludes short-term funding benefits.
- Risks include weaker demand post-price hikes, tighter GPU supply, OEM/ODM softness, and unresolved US tariffs, but the company’s premium mix strategy and cash position support a robust outlook into FY27.
- PC Partner ended FY25 with strong net cash, increased dividends, and better payout confidence, underlining improved financial health and capital return capability.
Above is an excerpt from a report by KGI Securities (Singapore) Pte. Ltd. Clients of KGI Securities (Singapore) Pte. Ltd. can be the first to access the full report from the KGI Securities website: https://www.kgieworld.com
