🚀 1-Min Stock Rundown

📌 Zixin Group: Ramping Up Growth via Higher-Margin Processed Snacks

🍠 Record FY2025 earnings beat expectations
Zixin reported FY2025 PATMI of RMB42.7m, a 220% YoY surge beating analyst forecasts by 22%. Revenue grew 33% YoY to RMB278m, driven by stronger sales of fresh sweet potatoes (+72%) and improved margin contribution from processed food and seedlings.

🏭 Major capacity ramp-up underway
The group is spending ~RMB60m in CAPEX to more than double its annual production capacity of value-added sweet potato products from 13,700 to 35,000 tonnes. Cold storage expansion will increase shelf life, enabling price optimisation and access to e-commerce and supermarket channels beyond Liancheng.

🥔 Processed snacks gain traction with higher margins
Zixin recently launched proprietary sweet potato chips and fries, securing significant distributor orders and triggering the addition of a new production line. These snacks command 35–40% gross margins - higher than the group average - and are expected to become Zixin’s flagship product category.

🌱 Seedlings business scaling up in FY26F
Seedling sales rose 42% in 1H FY25, and Zixin is doubling its greenhouse nursery from 100 to 200 mu to boost external sales. The planting season from March to July should drive meaningful contributions to 1H FY26 results, especially amid strong demand and tight supply.

🐓 Animal feed revenue kicks off, with more upside ahead
Zixin sold RMB3.2m of probiotic-infused sweet potato feedstock in FY25, and plans to increase capacity by incorporating sweet potato stems (8x volume vs. peels) from FY26F. Gross margins of ~20% suggest the potential for profitable circular-economy expansion.

🌏 Strategic Hainan expansion supported by CITIC JV
Zixin owns 3% of a JV with CITIC Construction in Lingao, Hainan, to replicate its integrated value chain model across 8,961ha. Hainan supports dual harvests annually, and the project is on track to generate income from FY27, with scope for advisory fees, seedling sales, and branded product manufacturing.

💰 Net cash covers over half of market cap
Zixin sits on RMB183m (S$32m) net cash—about 52% of its S$61m market cap—giving it financial flexibility to execute growth plans without immediate equity dilution.

📊 How it stacks up against peers
Unlike other agri-plays like Japfa (SGX:UD2) - now delisted or Wilmar (SGX:F34), Zixin offers a more focused exposure to China’s food security and snack consumption trends via a vertically integrated sweet potato business.

It’s also one of the few SGX-listed micro-caps seeing increasing institutional and insider interest (Substantial Shareholder Thomas Khoo owns >13%).

📈 Conclusion
Zixin is quietly executing a multi-pronged growth strategy - from agri-tech to FMCG snacks - underpinned by rising demand, CAPEX-funded expansion, and strong cash reserves. With valuation at ~7x FY25 P/E and a clear roadmap through FY27, it could appeal to investors seeking deep value with structural tailwinds.

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Cheers,

James -Dissecting-Stocks-in-1-min- Yeo