Helens International, PC Partner report contrasting 2024 results after secondary listings on SGX

Helens International, PC Partner report contrasting 2024 results after secondary listings on SGX

  • 19.03.2025 10:04
  • straitstimes.com
  • Keywords: danger, success

Two Hong Kong-listed firms with secondary listings on SGX saw contrasting 2024 results. Helens International forecast a net loss due to weak demand and property downturns in China, while PC Partner reported a 331% surge in profits driven by strong demand for its graphics cards.

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Estimated market influence

Helens International Holdings

Negativesentiment_dissatisfied
Analyst rating: N/A

The company is expecting a revenue decline and net loss due to weak consumer demand and property downturn in China.

PC Partner Group

Positivesentiment_satisfied
Analyst rating: N/A

Reported a significant increase in net profit due to strong demand for their graphics cards following the launch of new products by Nvidia.

Context

Business Insights and Market Implications

Helens International

  • Revenue decline: Expected between 730 million yuan (S$134 million) and 780 million yuan in 2024, down from 1.2 billion yuan in 2023.
  • Net loss: Anticipated between 60 million yuan and 90 million yuan, compared to a net profit of 180.5 million yuan in 2023.
  • Reasons for decline:
    • Weak consumer demand
    • Impact of China’s property downturn
    • Impairments due to drop in fair value of office properties
    • Network optimisation costs
    • Expenses related to SGX secondary listing (July 2024)
  • Adjusted net profit: Up to 120 million yuan after excluding one-off costs.
  • Strategic shift: Reducing self-operated bar network, expanding franchised outlets in China (now 579 outlets).

PC Partner Group

  • Net profit surge: 331% year-over-year jump to HK$262.1 million (S$44.9 million).
  • Revenue growth: 10% increase to over HK$10 billion.
  • Growth drivers:
    • Strong demand for graphics cards following Nvidia’s Super GPU launch (January 2024).
    • Higher margins from reduced advertising.
  • Investments:
    • HK$123.3 million spent on setting up Singapore headquarters and Batam, Indonesia factory.
    • HK$21.4 million spent on SGX listing (November 2024).
  • Stock performance: Shares jumped by over 138% since listing, closing at $2 on March 19.

Market Trends and Implications

  • Contrasting fortunes: Reflects broader economic challenges in China (Helens) vs. strong demand in tech sector (PC Partner).
  • Strategic adjustments:
    • Helens: Focusing on cost-cutting and franchise expansion.
    • PC Partner: Leveraging GPU demand and expanding global presence.
  • SGX吸引力: Both companies’ listings highlight SGX’s growing appeal as a secondary listing destination, supported by regulatory simplifications.

Competitive Dynamics

  • Helens: Faces intense competition in the bar industry, with reduced consumer spending impacting performance.
  • PC Partner: Strong competitive position in GPU market, benefiting from technological advancements and global expansion.

Long-term Effects

  • Helens: Restructuring may help long-term sustainability but faces immediate challenges from economic downturns.
  • PC Partner: Strategic investments in manufacturing and global expansion likely to solidify its market position.

Regulatory Impact

  • SGX’s efforts to attract listings through simplified processes are expected to boost its appeal as a secondary listing hub.