PC Partner Group (1263) AI Stock Analysis

• Market Cap: $2.64B
• Dividend Yield: 4.41%
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.09
• Revenue Growth: 9.98%
• EPS Growth: 330.72%
• Country: HK
• Employees: 2,530
• Sector: Industrials
• Sector Strength: 85
• Industry: Computer Hardware
• EPS (TTM): 0.68
• Shares Outstanding: 387,883,670
• 10 Day Avg. Volume: 1,673,416
• 30 Day Avg. Volume: 2,420,272
• PEG Ratio: -0.04
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: HK$7.50 ▲(9.97%Upside)

PC Partner Group's overall stock score is driven by strong financial performance and attractive valuation. Despite some operational challenges and weak technical momentum, the company's robust cash flow and reduced leverage provide a stable foundation for growth.

PC Partner Group Business Overview & Revenue Model

Company Description

PC Partner Group Limited, headquartered in Hong Kong, is a leading manufacturer and distributor of computer hardware components, particularly graphics cards and motherboards. The company primarily operates in the technology sector, focusing on the design, development, and manufacturing of electronics, including computer peripherals and components. PC Partner is known for its own brands, such as ZOTAC and Inno3D, which are renowned in the global market for high-quality graphics processing units (GPUs) and related products.

How the Company Makes Money

PC Partner Group generates revenue through the sale of its computer hardware components, primarily graphics cards and motherboards. The company designs and manufactures these products under its own brands, such as ZOTAC and Inno3D, as well as for other original equipment manufacturers (OEMs). A significant portion of its earnings comes from the global distribution of these components to a wide range of markets, including gaming, professional graphics, and cryptocurrency mining. Additionally, PC Partner benefits from strategic partnerships with major semiconductor companies like NVIDIA, which supplies the GPUs integrated into its products, enhancing the performance and appeal of their offerings. The company's revenue streams rely heavily on the demand for high-performance computing solutions and the continuous innovation in the tech industry.

PC Partner Group Financial Statement Overview

Summary

PC Partner Group shows solid financial health with strong cash flows and prudent balance sheet management. Revenue and margins have improved, though operational efficiency could be further enhanced. The balance sheet is well-capitalized, and cash flow generation is robust, providing a stable foundation for future growth. Potential risks include operational challenges reflected in EBIT figures and the need for continued margin improvements.

Income Statement

PC Partner Group has shown a positive revenue growth rate of 9.96% from 2023 to 2024. The gross profit margin improved to 9.48% in 2024 from 7.64% in 2023, indicating better cost management. However, the net profit margin rose significantly to 2.6% in 2024 from 0.66% in 2023, reflecting improved profitability, yet it remains modest. The absence of EBIT in 2024 is a concern, indicating operational challenges despite the positive EBITDA margin of 4.47%.

Balance Sheet

PC Partner Group exhibits a strong equity position with an equity ratio of 57.08% in 2024, up from 52.37% in 2023. The debt-to-equity ratio has decreased to 0.32, showcasing reduced leverage and enhanced financial stability. ROE improved to 9.16% in 2024, indicating effective use of shareholder funds. The balance sheet reflects a robust capital structure, although growth in total assets has been moderate.

Cash Flow

The company has demonstrated a substantial free cash flow growth rate of -48.81%, primarily due to a high base effect from 2023. The operating cash flow to net income ratio is robust at 7.46, signifying strong cash generation relative to profits. Free cash flow to net income ratio of 6.89 indicates efficient cash management. Overall, cash flow remains a strength, supporting liquidity and potential reinvestment.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.08B	9.17B	10.78B	15.46B	7.76B
	Gross Profit
955.49M	700.75M	1.56B	4.29B	795.36M
	EBIT
299.05M	119.79M	918.15M	2.96B	164.60M
	EBITDA
451.16M	253.90M	984.21M	3.18B	369.28M
	Net Income Common Stockholders
262.13M	60.84M	702.48M	2.37B	207.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.33B	2.49B	2.21B	3.77B	1.12B
	Total Assets
5.02B	5.30B	6.16B	6.92B	3.99B
	Total Debt
930.51M	1.08B	1.87B	823.61M	1.21B
	Net Debt
-1.40B	-1.41B	-340.20M	-2.94B	87.39M
	Total Liabilities
2.15B	2.52B	3.30B	3.83B	2.88B
	Stockholders Equity
2.86B	2.77B	2.85B	3.09B	1.10B
Cash Flow		Free Cash Flow
1.81B	3.53B	2.14B	6.87B	4.59B
	Operating Cash Flow
1.95B	3.58B	2.68B	6.93B	4.59B
	Investing Cash Flow
150.05M	-387.03M	-544.17M	60.59M	-8.28M
	Financing Cash Flow
-2.01B	-3.29B	-3.66B	-4.36B	-4.38B

PC Partner Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1263, the sentiment is Negative. The current price of 6.82 is below the 20-day moving average (MA) of 6.86, below the 50-day MA of 7.11, and above the 200-day MA of 6.05, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 57.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1263.

PC Partner Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1263	72 Outperform	$2.64B	10.06	9.28%	4.41%	9.98%	330.72%
0992	70 Outperform	$114.74B	10.51	23.76%	3.70%	18.03%	71.00%
Sector *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%
3396	65 Neutral	HK$19.67B	137.44	0.24%	3.01%	15.54%	―
2498	43 Neutral	HK$15.43B	―	-12.70%	―	―	―

PC Partner Group Corporate Events

PC Partner Group Secures Shareholder Approval for Key Resolutions at 2025 AGM

PC Partner Group Limited announced that all resolutions proposed at its 2025 Annual General Meeting were approved by shareholders. This includes the re-election of several directors, the declaration of a final dividend, and the granting of mandates to issue and repurchase shares. The successful passing of these resolutions indicates strong shareholder support and could enhance the company’s strategic flexibility and governance, potentially impacting its market positioning positively.

PC Partner Group Announces 2025 Annual General Meeting

PC Partner Group Limited has announced its upcoming Annual General Meeting to be held on April 25, 2025, in Hong Kong and Singapore. The meeting will address several key resolutions, including the consideration of the audited financial statements for 2024, the declaration of a final dividend, the re-election of directors, and the re-appointment of auditors. Additionally, the company seeks approval to allot and issue new shares, which could impact its market positioning and shareholder value.