Company Overview
Zixin Group Holdings Ltd operates as an integrated sweet potato producer and processor, engaging in the cultivation, processing, and distribution of fresh sweet potatoes and value-added processed products. The company has established a comprehensive value chain spanning from farming operations to manufacturing sweet potato snacks, powders, and animal feed products, with its primary operations based in China and expanding distribution channels across regional markets including Singapore.
Growth Drivers and Financial Outlook
Phillip Securities Research maintains its BUY recommendation with a target price of S$0.055, projecting robust earnings growth of 35% year-on-year in 2H26. The research house expects FY26e PATMI to grow 17% year-on-year to RMB49.8 million, supported by lower raw materials costs and strong demand for processed products.
The company’s growth trajectory is underpinned by three key factors: stabilising supply and pricing of fresh sweet potatoes, product diversification into high-margin processed offerings, and volume-driven expansion in animal feed segments. Fresh sweet potato harvest is expected to grow approximately 28% year-on-year in FY26, driven by favourable weather conditions during the peak harvesting window between late August and early February.
Strategic Expansion and Product Development
Zixin’s processed sweet potato segment remains the key PATMI driver, with an expanding portfolio including sweet potato snacks and high-value functional products such as sweet potato powders. The company currently produces five tonnes of purple sweet potato powder daily and has secured meaningful distribution agreements, including availability across all Sheng Siong stores in Singapore since April 2026.
The animal feed business shows promising momentum, with a renewed annual contract valued at RMB1.44 million doubling previous volumes to 360 tonnes of feedstock. Revenue contributions from this segment are expected to become increasingly material by FY27e.
Hainan Project: Medium-Term Growth Catalyst
The Hainan Rural Revitalisation Project represents a significant growth catalyst, with first revenue contributions anticipated in FY27e through sweet potato trading activities. Hainan offers an estimated 500,000 acres of cultivable land suitable for sweet potatoes—five times larger than Zixin’s existing planting area in Liancheng. The superior climate supports two annual harvests, potentially doubling total fresh sweet potato output upon full commercialisation whilst securing internal supply chains and stabilising raw material costs.
Frequently Asked Questions
Q: What is Phillip Securities Research's recommendation and target price for Zixin Group Holdings?
A: Phillip Securities Research maintains a BUY recommendation with a target price of S$0.055, with no changes to FY26e forecasts.
Q: What are the key drivers behind Zixin's expected earnings growth?
A: The company's earnings growth of 35% YoY in 2H26 is supported by stabilising supply and prices of fresh sweet potatoes, product diversification in high-margin processed products, and volume-driven growth in animal feed.
Q: How significant is the fresh sweet potato harvest growth expected in FY26?
A: Fresh sweet potato harvest is expected to grow approximately 28% year-on-year in FY26, supported by favourable weather conditions during the peak harvesting window between late August and early February.
Q: What is the projected financial performance for FY26e?
A: FY26e PATMI is expected to grow 17% year-on-year to RMB49.8 million, with an estimated gross margin of 32.5% supported by higher in-house fresh sweet potato output and increasing contribution from higher-margin processed products.
Q: How does the Hainan expansion benefit Zixin's business model?
A: The Hainan expansion provides significant upside by securing internal supply to stabilise raw material prices, increasing production of premium sweet potato varieties, and leveraging superior climate conditions that support two annual harvests, potentially doubling total output.
Q: What progress has been made in regional expansion?
A: Since April 2026, Zixin's sweet potato chips have been available across all Sheng Siong stores in Singapore, with two premium varieties (Durian & Black Gold sweet potato) from Hainan also available starting May 2026.
Q: How substantial is the animal feed business growth?
A: The company renewed an annual animal feed contract valued at RMB1.44 million, doubling the previous volume to 360 tonnes of feedstock, with revenue contributions expected to become increasingly material by FY27e.
Q: When are revenue contributions from the Hainan project expected to materialise?
A: The first batch of revenue contributions from the Hainan project is expected to materialise in FY27e, potentially starting with sweet potato trading activities, as the project serves as a medium-term growth catalyst.
This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.
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