From China to Singapore: The AI Boom’s Hidden Backdoor
For the modern investor, the “NVIDIA trade” has become a paradox of conviction and caution. While the AI-driven transformation of computing and high-end gaming is undeniable, the valuations of the “Magnificent Seven” and direct silicon designers have reached altitudes that often preclude an attractive margin of safety. As a tech sector analyst, I am frequently asked: where is the asymmetric risk/reward play that offers leveraged exposure to this cycle without the 40x multiple?
The answer increasingly points to the hardware manufacturers that translate NVIDIA’s silicon into functional powerhouses. Among these, PC Partner Group (PCT SP) has emerged as a compelling “pure play” candidate. Following a massive strategic overhaul that successfully de-risked its geopolitical footprint, the company is now perfectly positioned to ride the Blackwell (RTX 50) wave at a deep-value entry point.
Disclaimer: This post synthesizes professional analyst insights and is for informational purposes only; it does not constitute financial advice.
The Singapore Pivot: Regaining the “Crown Jewels”
PC Partner recently executed what can only be described as a strategic masterstroke: relocating its global headquarters from Hong Kong to Singapore and securing a secondary listing on the SGX. This was far more than an administrative exercise; it was a fundamental “re-rating” event that restored the company’s access to top-tier technology.
By establishing itself in Singapore, the Group regained early and unrestricted access to the RTX 5090, the flagship of NVIDIA’s “Blackwell” architecture. This priority allocation allowed PC Partner’s primary brands—ZOTAC, Inno3D, and Manli—to capture pent-up global demand for high-end gaming and creator hardware. The results were immediate and massive: branded sales saw a 60.3% jump in the first half of 2025, contributing to a total 1H25 revenue print of HK$6,355.3M.
As noted in the KGI initiation report:
“Own-brand revenue accelerated with the Group regaining access to the top tier RTX 5090 after the Singapore HQ move and SGX secondary listing.”
The “China Plus One” Hedge: Resilience in a World of Tariffs
In the current geopolitical climate, a manufacturer’s geography is its destiny. PC Partner has aggressively implemented a “China Plus One” strategy, centered on its new manufacturing facility in Batam, Indonesia.
This footprint proved its worth almost immediately. Following the February 4, 2025 executive tariff action, PC Partner was able to rapidly reroute U.S.-bound assembly and production outside of China. While China-centric peers scrambled to navigate new barriers, PC Partner’s Indonesia plant provided the agility to maintain market access and customer reach without interruption. This de-risked infrastructure effectively insulates the company from the “policy friction” that has historically depressed the valuations of hardware firms in the region.
The 92% Shadow: A Pure-Play Bet on NVIDIA’s Dominance
To bet on PC Partner is to bet on the continued hegemony of NVIDIA. As of Q1 2025, the discrete GPU market has consolidated into a near-monopoly, with NVIDIA holding a staggering 92% market share.
Discrete GPU Market Share (Q1 2025)
| Manufacturer | Market Share |
| NVIDIA | 92% |
| AMD | 8% |
| Intel | 0% |
| Source: Jon Peddie Research / KGI Analysis |
This alignment is a double-edged sword. On one hand, it ensures PC Partner is tethered to the most dominant technology cycle in history—the Blackwell (RTX 50) ramp. On the other, it creates a single-supplier dependence. PC Partner’s quarterly volume and mix are essentially dictated by NVIDIA’s roadmap. If NVIDIA shifts its channel strategy or experiences upstream foundry delays, PC Partner is directly exposed.
Transitioning the Narrative: Toward AI Infrastructure
While graphics cards (VGA) currently drive approximately 75% of revenue, management is pivoting the company toward higher-margin, AI-adjacent compute sectors. PC Partner’s entry into the NVIDIA Partnership Network (NPN) in 1H25 signals its transition from a hardware manufacturer to a specialized infrastructure player.
The strategic pipeline beyond traditional gaming includes:
- GPU Servers: Specialized systems for AI and Machine Learning (ML) workloads.
- Handheld PCs: High-performance portable gaming devices.
- Medical-Grade Systems: Specialized IT for the healthcare sector.
Investors should note the timeline: management expects dedicated hiring for the server division to begin in 2026, with meaningful revenue contribution projected for FY2027. This is a medium-term catalyst for multiple expansion, moving the stock from a “cyclical hardware” narrative to a “specialized AI infrastructure” story.
The “Deep Value” Debate: $1.73 Target vs. GDDR7 Risk
The core of the investment thesis is a massive valuation gap. Analysts have set a 12-month price target of SGD $1.73, representing a 70% upside from the recent trading price of SGD $1.02. This target is derived from a blended valuation approach, with 70% of the weight placed on a conservative Dividend Discount Model (DDM) to ground the bull case in tangible, near-term cash returns.
Currently, PC Partner trades at just 0.3x Price/Sales and 0.8x Price/Book (P/B). When contrasted against peers like Gigabyte—which trades at a 13.6x FY24 P/E and nearly 4x book value—the potential for a “valuation re-rating” is stark.
However, a strategist must account for the “bear” risks:
- Memory Inflation: The Blackwell cycle is uniquely exposed to price volatility in GDDR7 memory. Tight supply and high spot pricing for GDDR7 and DDR5 modules could squeeze margins if cost increases cannot be fully passed to the consumer.
- Cyclicality: The GPU market remains famously boom-or-bust. While the current cycle is constructive, any macro-induced delay in hardware upgrade cycles could cap volume growth.
Conclusion: Is the “China Discount” Still Valid?
PC Partner Group presents a unique profile: a Singapore-headquartered manufacturer that has successfully de-risked its manufacturing, secured early access to the world’s most advanced GPUs, and is successfully navigating global trade barriers. It is riding the largest technology wave of the decade while trading at a fraction of its peers’ value.
The central question for the market is whether the “China-risk” discount that historically depressed the share price remains justified. With the Singapore move complete and the Batam plant providing a proven shield against tariffs, the gap between the current SGD $1.02 price and the SGD $1.73 target looks increasingly like an inefficient market waiting for a catalyst. As the Blackwell cycle matures and the AI server revenue approaches, how much longer can the market ignore the value hiding in plain sight?
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