Jerash Holdings to Acquire New Manufacturing Facility and Associated Land; Expected to Significantly Increase Company's Production Capacity
Rhea-AI Summary
Jerash Holdings (Nasdaq:JRSH) will acquire an approximate 184,000 sq ft bank-owned manufacturing building and land in Amman for about $3.4 million, funded by a $0.6 million down payment and $2.8 million eight-year financing. The company plans ~$5.0 million more for renovations and equipment to create a flagship production complex.
Renovations are expected before the end of 2026, the first principal payment is due February 2027, capacity should rise by at least 40%, and the site could employ up to 2,500 workers as orders increase.
Positive
- Acquisition of an adjacent 184,000 sq ft manufacturing facility
- Planned manufacturing capacity increase of at least 40%
- Committed ~$5.0M for renovations and advanced equipment
- Potential to employ up to approximately 2,500 workers
Negative
- Total planned investment approximately $8.4M (acquisition plus renovations)
- New financed obligation: $2.8M over eight years with principal due Feb 2027
- Renovation completion targeted before end of 2026 (schedule risk)
News Market Reaction
On the day this news was published, JRSH gained 0.33%, reflecting a mild positive market reaction. This price movement added approximately $127K to the company's valuation, bringing the market cap to $39M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
JRSH showed a modest 0.33% gain while peers were mixed: LITB rose 1.09%, whereas VNCE, JL, PMNT, and JXG declined, including a 7.98% drop in PMNT, suggesting stock-specific rather than broad sector movement.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 03 | Dividend declaration | Positive | -0.7% | Board approved a regular quarterly cash dividend of $0.05 per share. |
| Jan 30 | Earnings date notice | Neutral | -0.3% | Announced date and time for upcoming fiscal 2026 Q3 results release. |
| Nov 12 | Earnings results | Positive | +0.3% | Reported Q2 FY2026 revenue growth, positive net income, and ~15% capacity expansion. |
| Nov 07 | Dividend declaration | Positive | +0.9% | Declared a regular quarterly $0.05 per share cash dividend on common stock. |
| Nov 04 | Earnings date notice | Neutral | -2.7% | Scheduled release and call for fiscal 2026 Q2 financial results. |
Recent news has often been followed by modest moves, with positive items like dividends and earnings sometimes met with small gains but also occasional negative reactions, indicating mixed alignment between fundamentals-focused headlines and short-term trading.
Over the last several months, Jerash has emphasized shareholder returns and steady growth. It repeatedly declared a $0.05 quarterly dividend on Nov 7, 2025 and Feb 3, 2026, and reported Q2 FY2026 results on Nov 12, 2025 with revenue of $42.0M and a 15.0% gross margin. Those results also noted a prior facility expansion adding about 15% capacity. Today’s acquisition and planned upgrade of a new facility extends this capacity-driven growth trajectory.
Market Pulse Summary
This announcement details a sizable expansion, with a 184,000 square-foot facility acquired for about $3.4M and a further $5.0M earmarked for upgrades, targeting at least a 40% capacity increase. It follows earlier growth steps, including a ~15% capacity addition and ongoing $0.05 quarterly dividends. Investors may watch execution timing through 2026, demand from large brand customers, and how the new plant affects margins and capital structure over time.
AI-generated analysis. Not financial advice.
FAIRFIELD, NEW JERSEY / ACCESS Newswire / February 5, 2026 / Jerash Holdings (US), Inc. (Nasdaq:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced it has received approval from the Housing Bank for Trade and Finance (the "Housing Bank") to acquire an approximate 184,000 square-foot, bank-owned manufacturing building and associated land adjacent to its existing facilities in Amman, Jordan, for around
The Company committed a
Jerash plans to invest an additional approximate
Renovations are anticipated to be completed before the end of 2026. Once operational, the new facility is expected to gradually employ up to approximately 2,500 workers, as demand and order volumes increase. Recruiting efforts will begin before renovations are completed and prior to the installation of new equipment, ensuring the facility can ramp up operations quickly upon completion.
"This investment in our future reflects management's and our board's confidence in the strength of our business, our markets, and long-term growth outlook, and represents a major milestone in Jerash's business growth strategy for the next five years," said Sam Choi, Jerash's chairman and chief executive officer. "Customer demand from global apparel brands continues to strengthen, and this new facility gives us the necessary capacity and technological capability to scale responsibly, while maintaining the quality and reliability our customers expect.
"Beyond increasing production, this investment is about people and partnerships. We are very excited to bring new jobs and new people to the community, and expand our business with new and existing customers, as we position Jerash to achieve sustained growth and success for years to come, and further enhance shareholder value," Choi added.
About Jerash Holdings (US), Inc.
Jerash Holdings (US), Inc. manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which licenses brands such as DKNY and Nautica), Acushnet Holdings Corp (which owns the brand FootJoy), American Eagle, and Skechers. Jerash's existing production facilities in Jordan comprise six factory units and four warehouses, and Jerash currently employs approximately 6,000 people. Additional information is available at www.jerashholdings.com.
Forward-Looking Statements
This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "seek", "potential," "outlook" and similar expressions are intended to identify forward-looking statements. Such statements, including, but not limited to, completion of the new facility before the end of 2026, Jerash's current views with respect to future events and its financial forecasts, and expansion of the customer base among high-profile global brands, are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made, including those risks described from time to time in filings made by Jerash with the U.S. Securities and Exchange Commission. These and other risks and uncertainties are detailed in the Company's filings with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law.
# # #
For more Information, Contact:
PondelWilkinson Inc.
Judy Lin or Roger Pondel
310-279-5980
jlin@pondel.com
SOURCE: Jerash Holdings (US), Inc.
View the original press release on ACCESS Newswire
FAQ
What is Jerash Holdings (JRSH) buying and for how much?
How will the new JRSH facility affect Jerash's production capacity?
When will Jerash start repayment on the new acquisition loan?
How much will Jerash invest in renovations and equipment for the JRSH facility?
What is the expected employment impact of Jerash's new facility in Amman?
