PC Partner’s profit could more than double. Why our AI thesis is reinforced

Beansprout Pro in brief

• PC Partner expects its 1H2026 net profit to more than double to at least HK$500 million, compared with about HK$250 million a year ago.
• Management attributed the improvement mainly to higher average selling prices for its branded products, which helped lift gross profit margins.
• This is an encouraging sign that PC Partner’s shift towards premium products may be translating into stronger earnings faster than expected.
• The scale of the profit increase is significant and could have implications for our earnings forecasts, valuation and dividend expectations.
• However, the key question is whether this reflects a lasting improvement in product mix and margins, or a temporary boost from the Nvidia Blackwell launch cycle.
• In this update, we explain what the profit alert means for our investment thesis, the metrics we will be watching in August, and whether it changes our 4 Beansprout Stars rating and S$3.35 target price.