PC Partner Group (PCT) investor relations material

Executive summary

• H1 FY2026 revenue rose 1.5% YoY to HK$6,450.2m; profit attributable to owners increased 117.9% to HK$545.5m, driven mainly by higher VGA Card ASPs.

• Overall VGA Card sales grew as stronger high-end ODM/OEM orders offset weaker own-brand sales; component supply constraints weighed on several other product lines.

Financial highlights

• Gross profit increased 58.7% to HK$1,062.8m; gross margin rose to 16.5% from 10.5%, mainly on higher VGA Card ASPs.

• Profit before tax was HK$652.6m versus HK$305.3m; profit for the period was HK$545.7m versus HK$252.3m.

• Selling and distribution expenses fell to HK$53.2m from HK$70.2m; administrative expenses increased to HK$379.3m from HK$321.3m, including higher staff costs and delisting-related professional fees.

• Finance costs increased to HK$29.4m from HK$16.5m, primarily due to greater use of bank borrowings; income tax expense was HK$106.9m versus HK$52.9m.

Outlook and guidance

• Overall FY2026 revenue growth remains the stated expectation, with GPU server and AI-related shipments scheduled to begin in H2 and expected to offset pressure in other segments.

• H2 is expected to be challenging: VGA Card availability may decline further, graphics memory costs are expected to rise, and entry-level card shortages may push ASPs higher.

• Continued GPU server and AI-related business growth is expected to help offset potential declines in other segments in coming years.