PC Partner Group (PCT) H1 2024 earnings summary

Executive summary

• H1 FY2024 revenue rose 18.4% YoY to HK$4,944.2m; profit attributable to owners increased to HK$194.1m from HK$20.1m.

• Stronger VGA Card sales, improved gross margins and fewer sales promotions supported the profit rebound, partly offset by higher administrative costs.

Financial highlights

• Gross profit increased 72.5% to HK$558.4m; gross margin improved to 11.3% from 7.8%.

• Profit before tax was HK$228.5m versus HK$29.7m; period profit was HK$192.3m versus HK$19.2m.

• Administrative expenses rose 35.7% to HK$285.4m, mainly from higher staff bonuses and directors’ profit sharing; finance costs fell 49.4% to HK$17.8m.

• Basic and diluted EPS were HK$0.500 versus HK$0.052 in H1 FY2023.

Outlook and guidance

• Q3 sales may be slower than the prior two quarters; next-generation GPU VGA Cards are expected to support robust demand, stronger sales and improved margins.

• Singapore global headquarters and a Batam, Indonesia manufacturing facility are planned; the facility is envisaged to operate before end-2024, supporting a China + 1 strategy.

• GPU servers for AI and machine learning were launched; handheld PCs and medical-grade computers are among diversification initiatives.