HF Foods Group opened a new 4795‑square‑foot distribution center on December 18, 2025, at 4795 Innovative Highway in Powder Springs, just outside Atlanta. The facility is designed to serve the company’s existing 1,000‑customer base and to add capacity for additional restaurants in Georgia, Alabama, Mississippi and Tennessee.
The new center incorporates state‑of‑the‑art racking, dynamic inventory storage, and automated picking systems that the company plans to replicate nationwide. Automation is expected to cut order‑to‑delivery time by up to 20 percent and to reduce labor costs per unit by roughly 15 percent, creating a scalable platform for future capacity additions.
The expansion is part of HF Foods Group’s broader operational transformation, which includes a unified ERP rollout and centralized purchasing. Management said the new center will address growing demand that outpaced the previous Atlanta facility, and that the automation and ERP integration will improve service reliability and margin protection in a market where Asian‑foodservice customers demand rapid, accurate deliveries.
Financially, the company has been tightening costs and improving gross margins, with a 13‑basis‑point lift to 17.5 percent in Q2 2025. While the firm has faced net‑margin pressure and a goodwill impairment in 2024, the new distribution center is expected to support revenue growth by increasing throughput and reducing shipping lead times, thereby enhancing customer satisfaction and retention.
President and CEO Felix Lin noted, “The Powder Springs facility is a strategic investment that positions us to meet the rising demand for Asian‑foodservice products in the Southeast. By leveraging automation and our new ERP system, we can deliver faster, more reliable service while maintaining cost discipline.”
Analysts have maintained a “Hold” or “Moderate Buy” consensus on the stock, with an average 12‑month price target of $7.00. The operational news is viewed as a positive catalyst for long‑term growth, though investors remain cautious about the company’s recent profitability challenges.
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