Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Was on the buyside for 15 years, most recently at a medium-sized boutique asset management firm. I grew up in Europe, went to university in the US and have been living in Singapore for the last 7 years which has given me a broad scope on the world and investing in general.

Consider myself a generalist investor with a preference for small and mid-cap companies and special situations. However, a large cap that has gone temporarily out of favor might also pique my interest. 

My style of investing could be categorized as more of value investor, rather than growth at any cost. Learning from Charlie Munger on the importance of quality of a company has been of tremendous value over the years.I like businesses with real earnings, cash flows, dividends, book value and insider ownership.

Insight Provider

Preview PC Partner FY21 Earnings: Record Profit + Record Dividend + Strong Outlook for FY22

PC Partner: Record FY21 Results and Strong Dividend. Cash Is 70% of Market Cap. Fair Value 18 HKD.

PC Partner (1263) 7.50 Buy Zone for New Chart Highs

Preview PC Partner FY20 Earnings + Outlook: Tight GPU Margin Gives FY21 Upside Potential

PC Partner: Great Demand, but Limited Supply of GPU's Created Mixed 2021 Outlook

PC Partner: 1H21 Off the Chart Results To Be Followed by Large Div Stream; 65% of Mkt Cap Is Cash

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/pc-partner-group-ltd" target="_blank" data-smartkarma-citation="entities:8492:1" rel="noopener">PC Partner (1263 HK)</a> is a "funny" stock to follow. On a full-year basis, the company has always been profitable since its IPO in 2012. Yet investors value the company as if it is perenially going out of business. The company mostly trades at a single-digit P/E and has zero sell-side coverage. Management has been mostly shareholder-friendly and paid out very regular dividends to long-term shareholders.Since our last insight in August we have received many questions from old and new investors: can this last? Surely, this must be a one-off profit for Pc Partner? Are the numbers real? How do you value this business? What is going on here? Why is it so cheap?After weeks of speaking to competitors and industry contacts in Taiwan, the US, and Singapore we are fundamentally more optimistic that this period of supernatural profits is not behind us for a while. We are making this statement knowing full-well that the industry that Pc Partner is a part of can be very fickle and the outlook can change quickly.All that being said we believe (oh oh, the most dangerous words!)this time is different. Supply-chain constraints and strong gaming demand coupled with TSMC implementing the largest price increase in a decade have meant that 3Q21 pricing has continued to increase over 1H21. We are now entering seasonally the strongest quarter with all indications that pricing will remain exceptional. Bottom line: Pc Partner has been wrongly valued by investors for too long. We are raising our forecast for FY21 profits substantially, make some FY22 scenario analysis for the bears and raise our Fair Value to 18 HKD, or 143% upside from here. *our headline is not a typo: At yesterday's close of 7.4 HKD, this stock trades at 1.2x P/E and 40% FY21 dividend yield. More details are below the fold.

PC Partner (1263 HK) is a "funny" stock to follow. On a full-year basis, the company has always been profitable since its IPO in 2012. Yet investors value the company as if it is perenially going out of business. The company mostly trades at a single-digit P/E and has zero sell-side coverage. Management has been mostly shareholder-friendly and paid out very regular dividends to long-term shareholders.Since our last insight in August we have received many questions from old and new investors: can this last? Surely, this must be a one-off profit for Pc Partner? Are the numbers real? How do you value this business? What is going on here? Why is it so cheap?After weeks of speaking to competitors and industry contacts in Taiwan, the US, and Singapore we are fundamentally more optimistic that this period of supernatural profits is not behind us for a while. We are making this statement knowing full-well that the industry that Pc Partner is a part of can be very fickle and the outlook can change quickly.All that being said we believe (oh oh, the most dangerous words!)this time is different. Supply-chain constraints and strong gaming demand coupled with TSMC implementing the largest price increase in a decade have meant that 3Q21 pricing has continued to increase over 1H21. We are now entering seasonally the strongest quarter with all indications that pricing will remain exceptional. Bottom line: Pc Partner has been wrongly valued by investors for too long. We are raising our forecast for FY21 profits substantially, make some FY22 scenario analysis for the bears and raise our Fair Value to 18 HKD, or 143% upside from here. *our headline is not a typo: At yesterday's close of 7.4 HKD, this stock trades at 1.2x P/E and 40% FY21 dividend yield. More details are below the fold. 

PC Partner: Just the Wrong Price; Raising Fair Value Est to 18 HKD; 1.2x P/E and 40% Div Yield FY21