Kwong Lung Enterprise Provides Positive 2026 Outlook; Multi-Country Manufacturing Strategy Solidifies as Apparel Growth Accelerates

December 16, 2025 – Kwong Lung Enterprise (8916-TW) held its investor conference today, hosted by KGI Securities, where management outlined clear growth visibility for 2026 as apparel momentum strengthens and the company’s multi-country production platform continues to take shape. TruePulse Capital Advisory supported the full communication planning process, including content development, presentation design, and preparation of briefing materials for the event.

With global brand inventories normalizing, improving order patterns, and new Bangladesh capacity entering the network, Kwong Lung expects its apparel division to deliver double-digit growth in 2026, forming the core of next year’s earnings expansion.

Order visibility now extends through the second quarter of 2026. Core customers—particularly U.S. brands consolidating supply chains and shifting sourcing from China—are increasing order volumes. New-customer contribution continues to scale, with more than three additional brand accounts expected in 2026, lifting new-customer revenue share from roughly 5–10% this year to 10–15% next year. In home textiles, newly acquired European and Japanese customers are also set to expand shipment volumes beginning in 2026.

Kwong Lung highlighted that its three-country manufacturing architecture is now increasingly well-defined:

Vietnam supports mid- to high-end production,
Indonesia focuses on flexible mid-tier and value-tier categories, and
Bangladesh provides scale, cost efficiency, and an entry point into knitted apparel.

Bangladesh has already secured firm orders and is expected to begin small-batch shipments in the first half of 2026, broadening the company’s total addressable market and strengthening long-term competitiveness.

The company also reiterated its commitment to stable shareholder returns. Cash dividends for 2026 are expected to remain at no less than NT$3.0–3.6 per share, aligned with its long-term framework of increasing dividends by NT$0.5 approximately every two years. Contributions from fixed-income assets and continued recognition from Taiwan residential projects will further support dividend stability over the next several years.

Management also noted that although third-quarter results were released earlier, the quarter delivered significant improvement: gross margin rose to 18.7% on a stronger product mix, with apparel accounting for 66.4% of revenue. NT dollar depreciation and gains from the sale of a Japan property also contributed to net profit rising 51% year over year—reinforcing the company’s financial foundation entering the 2026–2028 growth cycle.

Looking ahead, Kwong Lung plans to further expand its ODM capabilities, upgrade product mix, enhance supply-chain flexibility, and execute a long-term roadmap anchored on stable dividends and sustained double-digit growth in apparel.

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