Core Viewpoint - The company has signed a land acquisition agreement in Egypt, marking the official launch of its capacity project in the region. The agreement was signed on January 18, 2026, for a total amount of 30.4 million USD, funded by the company's own resources. The land, located in the New October Industrial Zone, spans approximately 800,000 square meters, and will be used to build production facilities for expanding the company's apparel and fabric business in Egypt, enhancing capacity and diversifying geopolitical risks [1]. Group 1 - The establishment of capacity in Egypt offers multiple advantages for the company, including improved quick response capabilities due to enhanced infrastructure and proximity to Europe, which aids in meeting European quick response order demands [2]. - The company benefits from a 0% tariff on exports to Europe and North America, with an expected revenue share of approximately 57% from these regions in 2024. For instance, exports of women's clothing to Europe, such as those classified under HS code 6110.19.9010, incur no tariffs. Additionally, products exported to the U.S. can also enjoy 0% tariffs if they meet specific criteria regarding Israeli manufacturing components [2]. - The company can leverage various tax and non-tax incentives in Egypt to reduce production costs, further enhancing its competitive edge [2]. Group 2 - Earnings per share (EPS) forecasts for the company are projected to be 0.08, 0.09, and 0.11 USD per share for the years 2025 to 2027, respectively. Given the company's strong growth momentum and operational resilience, a price-to-earnings (PE) ratio of 12 times for 2026 is suggested, leading to a reasonable value of 8.66 HKD per share, maintaining a "buy" rating [2].
晶苑国际(02232.HK)：签订埃及土地收购协议扩产能 全球产能布局开新篇章