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

PC Partner: In the Last Bitcoin Bull Market Stock Was 300% Higher. Repeat?

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

PC Partner (1263 HK): Hoping for Bitcoin Revival to Rescue 2H19; Nvidia Overhang Remains

PC Partners (1263 HK): Better Times Ahead as Data Center Operations Are New Growth Engine

PC Partners: Nvidia Proxy Suffering from Disappointing Reception to Latest GPU

NVIDIA. Headwinds Mount As AMD Continues To Erode Their AI Training Market Leadership

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

Several years ago we wrote about <a href="https://www.smartkarma.com/insights/pc-partners-1263-hk-a-poor-man-s-way-into-nvidia-new-gpu-cycle-trades-at-3x-pe-and-11-div-yield" target="_blank" data-smartkarma-citation="insights:23737" rel="noopener">PC Partners (1263 HK): A Poor Man's Way into Nvidia New GPU Cycle; Trades at 3x PE and 11% Div Yield</a>.We see a similar trade coming up in 4Q20 and into 1Q21.As demonstrated over the years covering PC Partners the stock is rarely a buy &amp; hold. With Nvidia's new RTX30 GPU launch (GTX3060/GTX3070/GTX3080 and GTX 3090) being spread out from October to December there is likely to be excitement around its performance and uptake.Much different than in FY18 there is no large oversupply from a deflating crypto bubble. This means there is no old inventory to clear which should result in much better GPM and NPM for Pc Partners. Please also note that gearing for Pc Partner in 2018 was over 100% while the company will have a net cash position by the end of FY20.Pc Partner remains a poor man's way to play Nvidia and key themes such as e-sports, AI, data centers, and overall gaming. We expect dividends to be reinstated for FY20. On our estimates, the company will achieve 8 billion HKD in FY20 sales and generate 272 million HKD in net profit (3.4% NPM). If we assume a 30% payout on that we get a 0.22 HKD/share full-year dividend or a 14% dividend yield. We expect the stock to reach 3 HKD in the coming 6 months. Upside could come from a bullish breakout in cryptocurrencies as crypto mining (which consumes massive GPU) comes back in vogue. The downside is capped by a very cheap valuation.

Several years ago we wrote about PC Partners (1263 HK): A Poor Man's Way into Nvidia New GPU Cycle; Trades at 3x PE and 11% Div Yield.We see a similar trade coming up in 4Q20 and into 1Q21.As demonstrated over the years covering PC Partners the stock is rarely a buy &amp; hold. With Nvidia's new RTX30 GPU launch (GTX3060/GTX3070/GTX3080 and GTX 3090) being spread out from October to December there is likely to be excitement around its performance and uptake.Much different than in FY18 there is no large oversupply from a deflating crypto bubble. This means there is no old inventory to clear which should result in much better GPM and NPM for Pc Partners. Please also note that gearing for Pc Partner in 2018 was over 100% while the company will have a net cash position by the end of FY20.Pc Partner remains a poor man's way to play Nvidia and key themes such as e-sports, AI, data centers, and overall gaming. We expect dividends to be reinstated for FY20. On our estimates, the company will achieve 8 billion HKD in FY20 sales and generate 272 million HKD in net profit (3.4% NPM). If we assume a 30% payout on that we get a 0.22 HKD/share full-year dividend or a 14% dividend yield. We expect the stock to reach 3 HKD in the coming 6 months. Upside could come from a bullish breakout in cryptocurrencies as crypto mining (which consumes massive GPU) comes back in vogue. The downside is capped by a very cheap valuation.

PC Partner: Poor-Man's Play on Nvidia  (Part 2); Trades at 2x FY20 P/E and 14% Dividend Yield