PC Partner Group (1263) AI Stock Analysis

• Market Cap: $2.46B
• Dividend Yield: 5.53%
• Average Volume (3M): 3.62M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.16
• Revenue Growth: 15.67%
• EPS Growth: 35.62%
• Country: HK
• Employees: 2,530
• Sector: Technology
• Sector Strength: 81
• Industry: Computer Hardware
• EPS (TTM): 0.65
• Shares Outstanding: 387,883,670
• 10 Day Avg. Volume: 3,694,915
• 30 Day Avg. Volume: 3,619,369
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 1.79
• Enterprise Value/Ebitda: 4.57
• 1Y Price Target: $8.03
• Price Target Upside: 26.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$8.00 ▲(26.38% Upside)

PC Partner Group's stock score is primarily driven by its strong financial performance and attractive valuation. The company demonstrates solid cash flow and balance sheet management, with a favorable P/E ratio and dividend yield enhancing its investment appeal. Technical analysis presents mixed signals, with some indicators suggesting potential overbought conditions, which slightly tempers the overall score.

PC Partner Group Business Overview & Revenue Model

Company Description

PC Partner Group Limited (1263) is a Hong Kong-based company primarily engaged in the design, development, manufacturing, and distribution of computer electronics. The company specializes in producing motherboards, graphics cards, and mini-PCs under its own brands, as well as providing original equipment manufacturing (OEM) and original design manufacturing (ODM) services. PC Partner Group serves a global market, catering to both consumer and business sectors with high-performance and innovative computing solutions.

How the Company Makes Money

PC Partner Group makes money through a combination of direct sales of its branded products and through its OEM and ODM services. The key revenue streams include sales of graphics cards, motherboards, and mini-PCs to retail consumers and businesses. Additionally, the company earns revenue by manufacturing and designing products for other companies, leveraging its expertise and production capacity to serve global technology brands. Significant partnerships with major tech firms, along with its own established brands, contribute to its earnings. The diversified product offerings and global market presence allow PC Partner Group to maintain a steady revenue flow across different segments of the computing industry.

PC Partner Group Financial Statement Overview

Summary

PC Partner Group shows solid financial health with strong cash flows and prudent balance sheet management. The company has improved its revenue and margins, though operational efficiency could be enhanced further. 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
EBITDA	451.16M	253.90M	984.21M	3.18B	369.28M
Net Income	262.13M	60.84M	702.48M	2.37B	207.28M
Balance Sheet
Total Assets	5.02B	5.30B	6.16B	6.92B	3.99B
Cash, Cash Equivalents and Short-Term Investments	2.33B	2.49B	2.21B	3.77B	1.12B
Total Debt	930.51M	1.08B	1.87B	823.61M	1.21B
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: 6.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 6.33 is below the 20-day moving average (MA) of 6.88, below the 50-day MA of 7.14, and below the 200-day MA of 6.86, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 33.99 is Neutral, neither overbought nor oversold. The STOCH value of 13.60 is Positive, 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	74 Outperform	$2.46B	7.71	10.76%	5.53%	15.67%	35.62%
Sector *	61 Neutral	$35.56B	8.62	-10.46%	1.86%	8.47%	-8.26%
LNVGF	―	$17.50B	11.59	26.62%	3.56%	―	―
3396	62 Neutral	HK$25.68B	43.74	0.95%	3.01%	19.58%	―
2498	52 Neutral	HK$18.43B	―	-10.42%	―	―	―

PC Partner Group Corporate Events

PC Partner Group Granted Waiver for Hong Kong EGM Amid Listing Transition

PC Partner Group Limited has announced that it received a waiver from the Singapore Exchange Securities Trading Limited (SGX-ST) to hold its Extraordinary General Meeting (EGM) in Hong Kong instead of Singapore. This meeting is crucial for obtaining shareholder approval for the company’s proposed delisting from the Hong Kong Stock Exchange, as it transitions to a primary listing on the SGX-ST, effective 20 August 2025.

PC Partner Group to Convert SGX Listing Status to Primary

PC Partner Group Limited has received in-principle approval from the Singapore Exchange Securities Trading Limited (SGX-ST) to convert its secondary listing status to a primary listing status. This strategic move is part of the company’s broader business strategy to diversify its operations beyond Greater China, which includes a future plan to delist from the Hong Kong Exchange. The company has also been granted a waiver for the SGX Free Float Requirement for nine months, allowing it time to meet the necessary conditions for the conversion.

PC Partner Group Postpones Board Meeting for Interim Results

PC Partner Group Limited has announced the postponement of its board meeting originally scheduled for August 14, 2025, to August 19, 2025. The delay is due to the need for additional time to finalize certain information for the interim results announcement for the six months ended June 30, 2025. This postponement may impact the timing of the interim results publication and any potential interim dividend considerations.

PC Partner Group Schedules Board Meeting for Interim Results

PC Partner Group Limited has announced a board meeting scheduled for August 14, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

PC Partner Group Anticipates Significant Profit Increase in H1 2025

PC Partner Group Limited has issued a positive profit alert for the first half of 2025, expecting a net profit of approximately HK$250 million, up from HK$194 million in the same period of 2024. This increase is attributed to a significant rise in sales revenue driven by strong demand for the newly launched RTX 50 series video graphics cards.

PC Partner Group Announces Resignation of Non-Executive Director

PC Partner Group Limited announced the resignation of Mrs. Ho Wong Mary Mee-Tak as a non-executive director, effective September 11, 2025, due to personal commitments. The board expressed gratitude for her contributions, and Mrs. Ho confirmed no disagreements with the board or issues needing attention from stakeholders.