- BUY Entry – 12.0 Target – 15.0 Stop Loss – 10.5
- PC Partner Group Limited is an investment holding company principally engaged in the electronics and personal computer (PC) parts and accessories businesses. Its main business include the design, development and manufacturing of video graphics cards for desktop PCs, the provision of electronics manufacturing services, as well as the manufacturing and trading of other PC related product components. The Company is also engaged in the provision of technical support services through its subsidiaries. Its primary products are video graphics cards, motherboards and mini-PCs. Its primary brands include ZOTAC, Inno3D and Manli. Its businesses are mainly conducted in Mainland China, Hong Kong, Macau, Korea and the United States of America.
- AMD reached another record sales in 4Q21. Previously, AMD (AMD US) announced its 4Q21 earnings. Revenue jumped by 48.8% YoY and 11.9% QoQ to US$4.8bn. GPM topped at above 50% for the first time, up 5.6 ppts YoY and 1.9 ppts QoQ. Adjusted net profit jumped by 98.0% YoY and 4.4% QoQ to US$997.2mn. FY22F guidance is upbeat; the company expects its sales to grow by 31% YoY to US$21.5bn with GPM of approximately 51%.
- Bitcoin price reclaimed the US$40,000 territory. Last Friday’s non-farm payroll showed that the economic recovery in the US is on track, reinforcing expectations of aggressive rate hikes and Fed balance sheet reduction. However, cryptocurrencies reacted positively to the better-off economic conditions. The correction since November has been pricing in the tightening monetary policies in 2022. Therefore, a short-term technical rebound is expected.
- Graphic card demand remains strong in 2022. The demand for graphic cards will be less driven by the crypto mining activities but more by cloud computing. Metaverse development will continue to roll out in 2022 as the leading technology giants explore strategic direction and new applications.
- The company’s valuation is attractive. The stock is currently trading at only 4.1x PE.