Earnings Inflection + AI Optionality at 6.7x P/E; Initiate with BUY

研报英文原文证据摘录

Earnings Inflection + AI Optionality at 6.7x P/E; Initiate with BUY

siness to reach 20-30% of FY25

revenue in 3 years. We expect it to cater to data centre customers in Malaysia, and the company

guides for revenue contribution in FY27E. While gross margins are dilutive, we expect server

assembly to be a re-rating catalyst as PCPG executes due to the secular AI exposure.

Valuation remains undemanding: PCPG trades at 6.7x our FY26E P/E compared to peers'

mean of 12-13x FY26E P/E. On average, PCPG has traded at 3-4 turns of discount to Taiwanese .Source: Company, Jefferies estimates

Note: Mark-up margin is calculated based on (1-((1-GPM

peers, and we think the market has yet to appreciate the margin inflection due to shortages and %)*(0.98)))/((1-GPM%)*(0.98)). We use reverse calculation to

estimate the mark-up on cost.

its potential entry into the server business. The sharp discount should be viewed as a margin of Chart 2 - Underpinning our 42% 3Y earnings

safety for server execution upside in FY27E, and multiples should hold given strong earnings CAGR

visibility in FY26E. We expect continued price discovery due to its relatively new listing and

thin coverage to close this discount.

We initiate on PCPG with a BUY rating; our PT of S$3.60 is derived from 9x P/E applied to our

FY26E EPS of HKD2.44/SGD0.40. We view the server business as a call option, cushioned by

cyclically-strong earnings for longer-term upside. As investors get more details on the server

assembly business via qualifications/customer-wins, we expect PCPG's discount to Taiwan

peers to narrow significantly. We derive a bull-case PT of S$5.20 from c.10x FY27E P/E. .

Source: Company, Jefferies estimates

Catalysts: Consumer GPU refreshes, continued price hikes, no demand destruction in 2H26E,