
Key Highlights
Fresh sweet potatoes. We expect a c.28% YoY growth in fresh sweet potato harvest in FY26
to drive profitability, supported by favourable weather conditions and the peak harvesting
window between late August and early February. The higher yield helps reduce Zixin’s
reliance on external farmers’ supply, thereby reducing cost. Meanwhile, we anticipate the
sweet potato prices to moderate, with growth slowing at +2% per kg, down from +4% per kg
in 1H26 as supply continues to normalise. In addition, the company has renewed an annual
contract for animal feed (white ducks) valued at RMB1.44mn (~S$269K). This contract
doubled the volume of the previous order to 360 tonnes of feedstock, with the revenue
contribution expected to become increasingly material by FY27e. Overall, we maintain our
FY26e forecast with an estimated gross margin of 32.5%. The margin performance to be
supported by higher in-house fresh sweet potato output during the peak harvest season,
alongside an increasing contribution from higher-margin processed products.
Sweet potato processed products. We expect processed sweet potato to remain the key
PATMI driver, supported by an expanding portfolio of sweet potato snacks and high-value
functional products such as sweet potato powders. While the company is currently fulfilling
smaller orders for bakeries and noodle manufacturers, we believe this product will become a
meaningful revenue contributor starting in FY27e as capacity scales. The potential extends to
the health supplements and cosmetics sectors, where nutrient-dense ingredients command
premium prices. Zixin currently produces five tonnes of purple sweet potato powder per day.
In addition, the company has made significant progress in its regional expansion. Since April
2026, Zixin’s sweet potato chips have been available across all Sheng Siong stores in
Singapore. Furthermore, two selected premium sweet potato varieties (Durian & Black Gold
sweet potato) sourced from Hainan will also be available starting May 2026. With both online
and offline distribution channels, we expect stronger consumer adoption and brand
recognition. We anticipate that revenue contributions from international markets will remain
marginal, with the China market continuing to serve as the primary performance indicator for
our forecasts.
Hainan Rural Revitalisation Project. We expect the project to serve as a medium-term growth
catalyst for Zixin and think the first batch of revenue contributions to materialise in FY27e,
potentially starting with sweet potato trading activities. Hainan offers an estimated 500K acres
of cultivable land suitable for sweet potatoes, 5x bigger than the planting area in Liancheng,
China. By replicating its integrated value chain in Hainan, Zixin can leverage a superior climate
that supports two annual harvests, thereby doubling total fresh sweet potato output upon full
commercialisation. We believe the Hainan expansion provides significant fundamental upside
for Zixin, primarily by 1) securing internal supply to stabilise raw material prices and mitigate
margin fluctuations, and 2) increasing production of premium sweet potato varieties to capture
robust market demand.
Important Information
This report is prepared and/or distributed by Phillip Securities Research Pte Ltd ("Phillip Securities Research"), which is a holder of a financial adviser’s licence under the Financial Advisers Act, Chapter 110 in Singapore.
By receiving or reading this report, you agree to be bound by the terms and limitations set out below. Any failure to comply with these terms and limitations may constitute a violation of law. This report has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this report by mistake, please delete or destroy it, and notify the sender immediately.
The information and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this report has been obtained from public sources which Phillip Securities Research believes to be reliable. However, Phillip Securities Research does not make any representation or warranty, express or implied that such information or Research is accurate, complete or appropriate or should be relied upon as such. Any such information or Research contained in this report is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this report are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this report is not indicative of future results.
This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This report should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgment. The fact that this report has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this report is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this report involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this report should take into account existing public information, including any registered prospectus in respect of such product.
Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this report, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this report.
Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment.
To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold an interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this report. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, which is not reflected in this report, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this report.
The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.
This report is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this report may not be suitable for all investors and a person receiving or reading this report should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products.
This report is not intended for distribution, publication to or use by any person in any jurisdiction outside of Singapore or any other jurisdiction as Phillip Securities Research may determine in its absolute discretion.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSE
Where the report contains research analyses or reports from a foreign research house, please note:

Serena is a Research Analyst covering the U.S. Technology sector at PSR. Prior to joining the firm, she worked as an Equity Dealer and held various roles across the insurance and banking industries. Driven by a strong interest in economic trends, Serena holds a Bachelor's degree in Economics and a Postgraduate Diploma in Applied Finance from the University of Adelaide.