China : Nisun International acquires leading edible oil trader
Nisun International has acquired Zhetai Tianjin, a key edible oil trader in China, expanding its presence in the agricultural supply chain. The deal is expected to generate \$415 million in 2025 revenue. With strong financials and strategic growth moves, including a \$50 million corn supply agreement, Nisun is positioning for long-term value and market expansion.
SHANGHAI – Nisun International Enterprise Development Group Co., Ltd (NASDAQ: NISN), currently valued at $20.25 million market cap, has announced its strategic acquisition of Zhetai (Tianjin) Trading Co., Ltd, a prominent player in Northern China’s edible oil market. This move marks Nisun International’s significant expansion into the edible oil trading sector, with Zhetai Tianjin expected to contribute approximately USD 415 million in revenue for 2025. According to InvestingPro analysis, NISN appears undervalued based on its Fair Value estimates.
Zhetai Tianjin, now a majority-owned subsidiary of Nisun International, specializes in the procurement, storage, refining, logistics, and distribution of edible oils such as soybean, rapeseed, and palm oil. The company has established a strong brand presence with labels like “Jiran,” “Boxin,” “Bohai Bian,” and “Jixin,” covering 11 provinces in China.
Nisun International’s CEO, Xin Liu, expressed confidence in the potential growth from Zhetai Tianjin’s operations, citing its robust market position and operational strengths. The company, which maintains a strong current ratio of 4.23 and holds more cash than debt, also anticipates synergies between Zhetai Tianjin’s trading capabilities and Nisun International’s supply chain financing services, aiming to enhance customer value and profitability. InvestingPro subscribers can access 14 additional key insights about NISN’s financial health and growth prospects.
The acquisition aligns with the company’s strategy to deepen its supply chain capabilities in essential, high-demand industries. It positions Nisun International to capitalize on China’s edible oil market, which is the largest globally, with an annual consumption exceeding 40 million tons and a projected compound annual growth rate of around 5% over the next five years.
The transaction details will be disclosed in Nisun International’s financial report for the first half of 2025. This expansion is part of Nisun International’s broader objective to transform the corporate finance industry through integrated supply chain solutions.
The information is based on a press release statement from Nisun International, which also contains forward-looking statements. These reflect the company’s expectations for future growth and market positioning but are subject to a variety of factors that could cause actual results to differ materially. Recent performance metrics show NISN’s stock has gained over 10% in the past week, though it maintains a relatively modest gross profit margin of 9.26%. For comprehensive analysis and detailed financial metrics, visit InvestingPro.
In other recent news, Nisun International Enterprise Development Group Co., Ltd has secured a $50 million supply agreement with Sichuan Yingdafeng Agricultural Technology Co., Ltd. This agreement involves the provision of high-quality yellow corn over the next 12 months, adhering to national food safety and quality standards. This move is part of Nisun International’s strategy to strengthen its supply chain capabilities within China’s agriculture sector. Additionally, Nisun International is advancing with its stock repurchase plan, reflecting management’s belief in the undervaluation of the company’s shares and confidence in its performance. CEO Xin Liu highlighted the company’s focus on consistent growth and maximizing shareholder returns, emphasizing strong business fundamentals and strategic initiatives for long-term value creation. These developments indicate Nisun International’s commitment to enhancing its agricultural supply chain and deploying capital strategically. The information is based on a press release from Nisun International.
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Source : Investing.com
