PC Partner: Less attractive risk-reward

Beansprout Pro in brief

• PC Partner has delivered strong share price performance, up 249% year-to-date, making it one of the largest contributors to the Beansprout Pro Model Portfolio. 
• However, we believe the risk-reward has become less attractive. As an increasing part of PC Partner's growth outlook now depends on the successful ramp-up of its AI server business, with management targeting revenue of US$500 million to US$800 million in 2027.
• At the same time, rising US government bond yields present an additional risk. The US 10-year Treasury yield reached 5.24% on 9 October 2026, and we see scope for yields to rise further, particularly if higher oil prices fuel inflation. This could put pressure on valuations of companies whose investment cases depend heavily on future earnings growth.
• With the stock having delivered strong gains and its portfolio weight increasing, we reassess whether the potential upside still justifies maintaining our position.