Dear all,

Despite the broader market being buoyant, Zixin has been left behind, declining ~9% year‑to‑date. The stock last traded unchanged at S$0.032, levels which I believe looks attractive given recent developments.

Below is my personal view.

Key Investment Highlights

1) Improving news flow and growing presence in Singapore

After a relatively quiet period, Zixin has stepped up investor communications with three announcements released in April alone. Operationally, Zixin has made meaningful inroads into the Singapore market with its sweet potato product range.

Notably, the company participated in Food & Hospitality Asia 2026 (FHA 2026), held from 21–24 April 2026 at Singapore EXPO (Booth 6M2‑04/05). This marks an important step in strengthening brand visibility and distribution outreach in Singapore.

The announcements released this month are:

– 16 Apr: Zixin Group Making Noteworthy Progress in the Singapore Market (Click HERE).

– 13 Apr: Strategic Expansion into Fresh Agricultural Products Distribution Business in Overseas Markets through a Joint Venture (Click HERE).

– 1 Apr: Zixin Group Secures Renewed Order for Probiotic-Infused Fermented Sweet Potato Feedstock (Click HERE).

In addition, Zixin has set up a website where readers and potential customers can view more of their products HERE.

2) Rising analyst attention with significant upside

Although the share price only began to inch up from ~S$0.030 on 21 April, analyst coverage has been gradually improving.

Since March, Zixin has seen:

a) 2 unrated reports from SAC and Maybank; and

b) 2 updated reports from Lim & Tan and Phillip Securities.

Current analyst target prices range between S$0.055 and S$0.065. Using the most conservative target of S$0.055, this implies a potential upside of ~72% from current levels.

Fig 1: Zixin’s analyst target prices range between S$0.055 and S$0.065 (i.e. 72% – 103%) potential capital upside!

Source: Bloomberg 29 Apr 2026

3) Near‑term catalyst: FY26F results

A key re‑rating catalyst is Zixin’s FY26F results, expected around end‑May. With improving business momentum and greater analyst visibility, positive earnings delivery could drive renewed market interest.

4) Valuations remain attractive

Based on Bloomberg, Zixin’s FY26F and FY27F PE are at 5.5x and 4.5x respectively. FY26F and FY27F earnings are expected to grow 33% and 21% respectively to RMB56.8m and RMB68.8m respectively. Although I am not an analyst, my gut feel is that FY27F may be a year with an accelerated growth rate perhaps higher than 21%, given their developments.

Key Investment Risks

1) China S‑chip discount

As a China‑based S‑chip with a small market capitalisation (~S$62m), Zixin continues to suffer from investor scepticism. That said, the company has delivered positive results and regular operational updates in recent periods. With another few earnings releases demonstrating sustainable growth, I believe the market may gradually revisit the stock with a more constructive lens.

2) No dividend payout—for now

Zixin does not currently pay dividends, as management remains focused on deploying capital towards growth initiatives. That said, management has acknowledged investor concerns and is aware that dividends can serve as a signal to:

a) demonstrate cash flow credibility, and

b) show alignment with minority shareholders.

Dividend initiation remains a medium‑term possibility rather than an immediate priority.

3) Disclosure of interest

I am vested in Zixin and, in fact, added to my position in April. As such, there may be inherent bias, and readers are encouraged to conduct their own due diligence and assess suitability based on individual risk appetite.

Conclusion

At current levels $0.032, Zixin offers an attractive asymmetric risk‑reward profile, combining depressed valuations, improving news flow, rising analyst awareness, and a visible near‑term earnings catalyst. For investors able to tolerate small‑cap and China‑related risks, the stock likely presents a compelling re‑rating opportunity.

Disclaimer

As always, every investor’s situation is different. It’s important to consider your own risk appetite, portfolio exposure, and investment timeframe before taking any action. This article is meant for general informational purposes only. If you require advice specific to your circumstances, do consider speaking with your financial advisor or banker.

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Please refer to the disclaimer HERE