WH Group (0288) AI Stock Analysis

• Market Cap: $99.18B
• Dividend Yield: 20.7%
• Average Volume (3M): 26.14M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.43
• Revenue Growth: -1.46%
• EPS Growth: 155.31%
• Country: HK
• Employees: 102,000
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Packaged Foods
• EPS (TTM): 0.24
• Shares Outstanding: 12,830,220,000
• 10 Day Avg. Volume: 24,025,790
• 30 Day Avg. Volume: 26,142,501
• PEG Ratio: 0.07
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.78
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 2.60
• Enterprise Value/Ebitda: 1.44
• 1Y Price Target: $8.71
• Price Target Upside: 12.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: ―

WH Group Limited demonstrates strong financial stability with robust profitability and cash flow metrics, which significantly contribute to the score. The stock's attractive valuation, characterized by a low P/E ratio and high dividend yield, further enhances its appeal. While technical indicators show bullish momentum, caution is advised due to overbought signals.

Positive Factors

Earnings Recovery

Earnings recovery is expected to continue as hog farming losses narrow, supported by favorable feed costs.

Market Expansion

Strong retail presence and partnerships with major retailers like Walmart and Kroger underpin a potential volume recovery in packaged meat.

Strategic Focus

WH Group remains focused on industrialization, diversification, internationalization, and digitization, strengthening synergies across China, Europe, and the US.

Negative Factors

Decline in Packaged Meat

Higher slaughtering revenue more than offset the decline in packaged meat.

Market Challenges

WH Group is targeting to raise volume sales of packaged meat products in China after a 6% decline in 2024.

WH Group Business Overview & Revenue Model

Company Description

WH Group Limited (0288) is a leading global pork company that operates in the packaged meats, fresh pork, and hog production sectors. Headquartered in Hong Kong, the company is known for its vertically integrated business model, which enables it to control the entire production process from farm to fork. WH Group is recognized for its extensive portfolio of branded products, including Smithfield, the largest pork processor and hog producer in the United States, and other leading brands across various international markets.

How the Company Makes Money

WH Group Limited generates revenue primarily through three key segments: packaged meats, fresh pork, and hog production. The packaged meats segment includes sales of processed meat products such as sausages, hams, and bacon, which are a major source of income due to their higher margins and brand recognition. The fresh pork segment involves the sale of fresh pork products to retail, foodservice, and wholesale customers, capitalizing on global demand for fresh meat. The hog production segment includes the breeding and raising of hogs, with sales primarily to the company's own processing operations, ensuring a consistent supply chain. Additionally, WH Group benefits from international trade and strategic acquisitions, enhancing its market presence and revenue streams.

WH Group Financial Statement Overview

Summary

WH Group Limited shows a stable financial position with strong profitability and cash flow metrics. While revenue growth has been inconsistent, the company has managed to improve its profitability and cash generation. The balance sheet is solid with manageable leverage and strong equity, indicating a well-balanced financial structure.

Income Statement

The company exhibits a solid gross profit margin, consistently around 20% over the years, indicating strong pricing power and cost management. The net profit margin shows improvement from 2.4% in 2023 to 6.2% in 2024, suggesting better operational efficiency. Revenue growth has been inconsistent, with a decline observed in 2023 and 2024 compared to 2022. EBIT and EBITDA margins have shown fluctuations but are relatively strong, reflecting stable core operations.

Balance Sheet

The debt-to-equity ratio is moderate, improving from 0.38 in 2023 to 0.35 in 2024, indicating controlled leverage and financial stability. The return on equity improved significantly from 6.4% to 15.1%, showcasing enhanced profitability and efficiency. The equity ratio is robust, consistently above 50%, reflecting a healthy balance between debt and equity financing.

Cash Flow

The company demonstrates robust cash flow management with a strong free cash flow growth rate of 125% in 2024. The operating cash flow to net income ratio is healthy, highlighting efficient cash generation relative to profits. Free cash flow to net income also underscores strong cash flow conversion, indicating effective capital expenditure management and cash generation capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.94B	26.24B	28.14B	27.29B	25.59B
Gross Profit	5.37B	3.46B	5.18B	4.54B	3.85B
EBITDA	3.16B	2.00B	3.10B	2.25B	1.57B
Net Income	1.61B	629.00M	1.37B	1.07B	828.00M
Balance Sheet
Total Assets	19.84B	19.18B	19.86B	19.41B	18.71B
Cash, Cash Equivalents and Short-Term Investments	2.54B	1.71B	1.54B	1.79B	2.48B
Total Debt	3.72B	3.72B	3.90B	4.50B	3.16B
Total Liabilities	8.48B	8.60B	9.44B	9.72B	7.73B
Stockholders Equity	10.66B	9.83B	9.60B	8.75B	10.01B
Cash Flow
Free Cash Flow	1.81B	805.00M	826.00M	1.04B	1.80B
Operating Cash Flow	2.52B	1.62B	1.80B	1.96B	2.36B
Investing Cash Flow	-612.00M	-663.00M	-350.00M	-409.00M	-963.00M
Financing Cash Flow	-984.00M	-1.18B	-1.54B	-1.57B	-479.00M

WH Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0288, the sentiment is Positive. The current price of 7.74 is above the 20-day moving average (MA) of 7.55, above the 50-day MA of 7.27, and above the 200-day MA of 6.21, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 60.91 is Neutral, neither overbought nor oversold. The STOCH value of 63.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0288.

WH Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0288	75 Outperform	$99.18B	7.89	15.73%	20.70%	-1.46%	155.31%
1475	71 Outperform	HK$7.08B	36.65	5.15%	1.42%	3.95%	-42.81%
1583	66 Neutral	$1.13B	49.50	1.74%	1.44%	-0.82%	―
Sector *	65 Neutral	$26.91B	15.42	-4.18%	3.21%	1.01%	1.34%
1610	62 Neutral	HK$8.34B	14.05	5.82%	―	38.41%	―
3999	60 Neutral	€660.52M	29.38	0.92%	―	-8.33%	-69.38%

WH Group Corporate Events

WH Group Schedules Board Meeting to Review Interim Results

WH Group Limited has announced that its board of directors will hold a meeting on August 12, 2025, to review and approve the company’s unaudited consolidated interim results for the first half of the year and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for shareholders, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0288) stock is a Buy with a HK$8.80 price target. To see the full list of analyst forecasts on WH Group stock, see the HK:0288 Stock Forecast page.

WH Group Announces Successful AGM Resolutions and Dividend Declaration

WH Group Limited announced that all resolutions proposed at their Annual General Meeting on May 9, 2025, were passed. Key resolutions included the adoption of financial statements, re-election of executive directors, reappointment of Ernst & Young as auditors, and the declaration of a final dividend of HK$0.40 per share. These decisions reflect the company’s stable governance and commitment to shareholder returns, potentially strengthening its market position and investor confidence.

WH Group’s Shuanghui Reports Decline in Q1 2025 Financial Performance

Henan Shuanghui Investment & Development Co., Ltd., a subsidiary of WH Group Limited, reported a decrease in its financial performance for the first quarter of 2025. The company’s external sales volume of meat products fell by 1.9%, total operating income slightly declined by 0.1% to RMB14,295 million, and net profit attributable to owners decreased by 10.6% to RMB1,137 million compared to the same period in 2024. These results reflect a challenging market environment and may impact WH Group’s overall financial outlook.

Smithfield Foods Reports Strong Q1 2025 Financial Results

Smithfield Foods, a subsidiary of WH Group Limited, reported its unaudited financial results for the first quarter of 2025, showing a notable increase in sales and net income compared to the previous year. The report highlights a strong operational performance with a significant rise in operating profit, suggesting a positive impact on the company’s market positioning and potential benefits for stakeholders.

WH Group Reports Strong Q1 2025 Financial Results Amid Market Challenges

WH Group Limited announced its unaudited quarterly results for the first quarter of 2025, highlighting a 6% increase in revenue and a 19.4% rise in operating profit compared to the previous year. Despite a 9.2% decrease in packaged meats sales volume, pork sales volume increased by 4.4%, contributing to the overall financial growth. The company’s performance was impacted by varying hog and pork prices across different regions, with significant price increases in China and the U.S., while Europe faced challenges due to an outbreak of foot and mouth disease.