Broker Name: CGS International
Date of Report: January 19, 2026
Excerpt from CGS International report:
- Report Summary
- Fuxing China Group Limited is a vertically integrated zipper manufacturer based in Jinjiang City, Fujian Province, China, listed on SGX, and recently cancelled its Nasdaq listing plan.
- The company has modernised production under second-generation leadership, reducing labour needs and increasing automation, with over 1,600 customers including major brands like Anta, Septwolves, LiNing, 361°, and Samsonite.
- Fuxing reported a net profit of Rmb0.70m in FY24 after a loss in FY23, but continues to face low gross margins (6.2% in FY24), high production costs, and weak customer demand amid challenging economic conditions in China.
- In 1H25, revenue fell 1.2% year-on-year, and the company posted a net loss due to forex losses and higher personnel costs, although it maintained a slight net cash position.
- Fuxing is trading at a significant discount to book value (0.11x P/BV), compared to China peers, who have higher profitability and pay dividends.
- Key strengths include its vertically integrated model and fourth-largest market share in China; weaknesses include customer concentration and reliance on order-based business without long-term contracts.
- Opportunities stem from expected recovery and growth in the global and Chinese apparel markets, especially sportswear; threats include intense competition and operational risks from its single manufacturing location.
- The company is considering establishing a dividend policy and is focused on improving margins, innovating products, and expanding its customer base while managing costs and receivables tightly.
- Fuxing holds multiple certifications for quality, environment, and safety, and has registered 93 patents as of end-2024.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
