*Company Update* 🏢 *Zixin Group Holdings Ltd. (ZXGH SP/42W.SI)* • *Replicating value chain into Hainan.* Expansion into Hainan is underway. Zixin Group is actively extending its sweet potato value chain beyond Liancheng County, Fujian, into Lingao County, Hainan, through a revitalisation project spanning 8,961.33 hectares across 12 villages. The Hainan site is significantly larger than the Group’s original operations in Fujian, offering considerable potential for replication and scale. While the project remains in its early stages, Zixin anticipates majority of profit contributions beginning in late FY26 or early FY27. This marks the company’s first attempt to replicate its agricultural model outside Fujian, signalling its broader growth ambitions in the sector. • We maintain our *OUTPERFORM* recommendation and keep our TP at *S$0.060* , based on a Discounted Cash Flow (DCF) model, incorporating a terminal growth rate of 2.0% and a weighted average cost of capital (WACC) of 10%. Read the full report here: https://www.kgieworld.sg/research/zixingroup-jun10