Zixin - KGI Research 2026-06-24: FY26 Marks The First Tangible Proof-Point Of The Circular Sweet Potato Ecosystem

• Zixin (SGX:42W) delivered FY26 revenue of RMB607.5m, up 43.0% y-o-y, and net profit of RMB61.4m, up 43.8% y-o-y. The result was driven mainly by stronger fresh sweet potato sales and a faster contribution from the recovery and recycling segment.

FY26 results: the 1HFY26 framework is now supported by full-year numbers

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• Administrative expenses rose 21.7% y-o-y, with higher R&D, amortisation, employee benefits and professional fees. This supports the strategic narrative but also reinforces why we raise WACC: the group is now moving into a more complex, multi-region build-out rather than a single-base Liancheng turnaround.

FY26 actual vs prior FY26F: revenue beat, margin miss, earnings beat

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• The miss was at the gross margin line: actual gross margin of 30.8% was 3.7ppt below our prior 34.5% assumption, mainly reflecting a heavier fresh sweet potato mix and higher raw tuber cost. Despite this, net profit was 21.1% ahead of forecast, helped by stronger revenue scale and operating leverage.

Outlook

Revenue forecast assumptions

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Chong Ting Shuo KGI Securities Research | https://www.kgieworld.sg/ 2026-06-24

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