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PC Partner has long been known as the company behind graphics-card brands such as ZOTAC, Inno3D and Manli. But its latest 1H2026 results and, more importantly, management’s guidance suggest that PC Partner is entering a very different phase. Revenue in 1H2026 barely move -- only 1.5% -- to HK$6.45 billion, yet gross margin rose from 10.5% to 16.5%. |
PC Partner's graphics card is a computer component that creates and processes images, video and 3D graphics. Inside it is a Nvidia GPU chip. The finished graphics card includes the GPU plus memory chips, a circuit board, cooling fans/heatsinks, power components and connectors.
What is unusual is that this profit boom occurred while graphics-card volumes were falling sharply.
PC Partner's own-brand grapics card volumes dropped 18% year-on-year and OEM/ODM volumes fell 38%.
PC Partner compensated by selling a much richer mix of high-end products. The Nvidia RTX 5090 alone contributed HK$1.1 billion, or 17.5% of first-half revenue.
In other words, PC Partner was selling fewer graphic cards but making much more money from each one.
| The bigger story: AI servers |
The most interesting part of the investment case, however, is PC Partner’s new GPU-server business.
Management describes PC Partner’s role as system integration. Nvidia supplies the key GPU technology; PC Partner puts the components into a server, configures the system and tests it according to the customer’s requirements.
Management says this is relatively labour-intensive but does not require large amounts of capex.
| Target: $6.33 |
 "We reiterate our OUTPERFORM rating with a 12-month DCF value of S$6.33, implying 127.8% upside from S$2.78. The output uses 11.0% WACC and 2.0% terminal growth."-- Chong Ting Shuo, analyst, KGI Securities |
A year ago, this business was little more than an idea. PC Partner was hiring engineers, and building its AI capabilities.
Today, actual shipments have started, starting in July. The initial projects are primarily in Southeast Asia, including data centres in Malaysia and Indonesia, with orders/projects also in Taiwan while the company is prospecting in the US, Europe and elsewhere.
The first server shipments took place in July 2026.
PC Partner is currently supplying systems using Nvidia’s RTX PRO 6000 Server Edition GPUs, and its MGX 4U server design has received Nvidia certification.
CFO Gary Lau said PC Partner expects revenue from these servers to rise strongly from 2H2026 into 2027 and beyond.
| Are AI servers actually profitable? |
An AI server can sell for an enormous amount because it contains expensive Nvidia GPUs.
PC Partner originally expected server gross margins of around 10%, but now believes they could reach roughly 13–16%, close to the current gaming-card business.
Management also indicated selling prices of around US$130,000 for a barebone server and US$180,000–200,000 for a full system.
Below are KGI Research's forecasts for strong AI server revenue ramp:
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KGI: Server revenue to ramp |
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Server revenue |
% of group revenue |
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FY2026 |
HK$1.86bn |
12.3% |
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FY2027 |
HK$4.22bn |
24.0% |
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FY2028 |
HK$6.31bn |
34.8% |
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FY2029 |
HK$8.94bn |
45.1% |
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FY2030 |
HK$8.72bn |
44.4% |
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Source: KGI Research |
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At around S$2.78, PC Partner’s valuation appears undemanding, going by KGI forecasts of its earnings. If FY2026 PATMI reaches roughly HK$1.2 billion — a reasonable expectation after HK$545.5 million was already earned in 1H — the shares would trade at roughly 6 times earnings.
Source: Company data, KGI Research The company also remains in a strong net-cash position and management expects cash flow to remain healthy despite the working-capital requirements of high-value servers. The main risk is that today’s exceptional gaming-GPU margins prove temporary, while the AI-server expansion fails to live up to management’s ambitious targets.
At ~S$3, investors are buying a profitable Nvidia ecosystem player at a relatively low earnings multiple, while gaining exposure to a new server business that could eventually become PC Partner’s largest revenue contributor. |
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→ See also:PC PARTNER: This Stock is +235% year-to-date, yet trades at 40% Discount to Tech Peers on SGX
