WH Group (0288) AI Stock Analysis

• Market Cap: HK$109.70B
• Dividend Yield: 6.66%
• Average Volume (3M): 30.69M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.44
• Revenue Growth: 5.98%
• EPS Growth: 62.13%
• Country: HK
• Employees: 102,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): N/A
• Shares Outstanding: 12,830,220,000
• 10 Day Avg. Volume: 36,329,461
• 30 Day Avg. Volume: 30,688,945
• PEG Ratio: 0.04
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 5.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$8.96
• Price Target Upside: 4.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: HK$9.50 ▲(11.11% Upside)

The stock of WH Group Limited is supported by strong financial performance and attractive valuation metrics. The company's solid profitability and cash flow, combined with a low P/E ratio and high dividend yield, make it an appealing investment. However, technical indicators suggest the stock may be overbought, which could lead to short-term volatility.

Positive Factors

Cash Generation Ability

Strong cash flow growth indicates effective capital management, enhancing the company's ability to invest in growth opportunities and withstand economic fluctuations.

Balance Sheet Health

Improving leverage ratios suggest financial stability and reduced risk, providing the company with more flexibility for strategic initiatives.

Profitability Improvement

Enhanced profitability reflects better operational efficiency and cost management, strengthening the company's competitive position and financial health.

Negative Factors

Inconsistent Revenue Growth

Fluctuating revenue growth can signal market challenges or operational issues, potentially impacting long-term strategic planning and investment.

Margin Fluctuations

Margin volatility may indicate exposure to cost pressures or pricing challenges, which could affect profitability and financial predictability.

Market Demand Variability

Dependence on variable market demand and pricing can lead to earnings volatility, affecting the company's ability to maintain consistent financial performance.

WH Group Business Overview & Revenue Model

Company Description

WH Group Limited, an investment holding company, engages in the production, wholesale, and retail sale of meat products in China, the United States, Mexico, and Europe. The company operates through Packaged Meats, Pork, and Others segments. It is also involved in the slaughtering, wholesale, and retail sale of fresh and frozen pork; and hog farming activities. In addition, the company engages in the manufacture and sale of packaging materials; provision of logistics services; operation of a chain of retail food stores; production of flavoring ingredients and natural casings; and sale of biological pharmaceutical materials. Further, it is involved in the livestock breeding and slaughtering; and finance and property development activities. The company was formerly known as Shuanghui International Holdings Limited and changed its name to WH Group Limited in January 2014. The company was founded in 1958 and is headquartered in Kowloon, Hong Kong.

How the Company Makes Money

WH Group generates revenue primarily through the sale of pork and packaged food products. The Pork segment constitutes the largest portion of its revenue, driven by both domestic sales in China and exports, particularly to the United States. The company benefits from a vertically integrated supply chain, allowing it to control production costs and ensure quality. Additionally, the Packaged Foods segment contributes significantly to revenue, as it capitalizes on consumer trends toward convenience and processed food. Strategic partnerships with retailers and distribution networks enhance WH Group's market reach, while cost efficiencies realized through its operations in various countries further bolster profitability. Factors such as market demand for pork, pricing dynamics, and global meat consumption trends also play a critical role in the company's earnings.

WH Group Financial Statement Overview

Summary

WH Group Limited shows a stable financial position with strong profitability and cash flow metrics. The company has improved its profitability and cash generation despite inconsistent revenue growth. 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.04B	25.94B	26.24B	28.14B	27.29B	25.59B
Gross Profit	5.22B	5.37B	3.46B	5.18B	4.54B	3.85B
EBITDA	3.03B	3.16B	2.00B	3.10B	2.25B	1.57B
Net Income	1.62B	1.61B	629.00M	1.37B	1.07B	828.00M
Balance Sheet
Total Assets	20.85B	19.84B	19.18B	19.86B	19.41B	18.71B
Cash, Cash Equivalents and Short-Term Investments	2.98B	2.54B	1.71B	1.82B	1.79B	2.48B
Total Debt	4.35B	3.72B	3.72B	3.90B	4.50B	3.16B
Total Liabilities	8.79B	8.48B	8.60B	9.44B	9.72B	7.73B
Stockholders Equity	10.93B	10.66B	9.83B	9.60B	8.75B	10.01B
Cash Flow
Free Cash Flow	1.95B	1.81B	805.00M	826.00M	1.04B	1.80B
Operating Cash Flow	2.60B	2.52B	1.62B	1.80B	1.96B	2.36B
Investing Cash Flow	-982.00M	-612.00M	-663.00M	-350.00M	-409.00M	-963.00M
Financing Cash Flow	-532.00M	-984.00M	-1.18B	-1.54B	-1.57B	-479.00M

WH Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.55
• 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 Neutral. The current price of 8.55 is below the 20-day moving average (MA) of 8.77, above the 50-day MA of 8.42, and above the 200-day MA of 7.47, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.03 is Neutral, neither overbought nor oversold. The STOCH value of 21.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	HK$109.70B	8.71	15.40%	6.66%	5.98%	62.13%
1475	67 Neutral	HK$7.22B	34.76	5.55%	1.41%	7.29%	-33.19%
1583	63 Neutral	HK$981.63M	93.53	0.79%	0.00%	-1.70%	104.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1610	58 Neutral	HK$7.38B	11.32	6.29%	―	100.45%	2.89%
3999	54 Neutral	HK$599.55M	72.84	0.34%	―	1.59%	-56.45%

WH Group Corporate Events

Smithfield Foods Reports Strong Nine-Month Financial Performance

Smithfield Foods, Inc., a subsidiary of WH Group Limited, reported its unaudited financial results for the nine months ended 28 September 2025, showing a significant increase in sales and operating profit compared to the previous year. The results, prepared according to US accounting principles, indicate a robust performance with sales rising to US$11,304 million and operating profit reaching US$892 million, highlighting the company’s strong market position and effective cost management.

The most recent analyst rating on (HK:0288) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on WH Group stock, see the HK:0288 Stock Forecast page.

Shuanghui Development Reports Growth in Sales and Profit for 2025

Shuanghui Development, a subsidiary of WH Group, reported a 5.9% increase in external sales volume of meat products for the nine months ending September 2025, reaching 2.49 million metric tons. The company’s total operating income rose by 1.2% to RMB44,653 million, while net profit attributable to owners increased by 4.1% to RMB3,959 million, indicating stable growth and a positive financial performance.

The most recent analyst rating on (HK:0288) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on WH Group stock, see the HK:0288 Stock Forecast page.

WH Group Reports Strong Revenue Growth Amid Market Dynamics

WH Group Limited announced its unaudited results for the nine months ending September 2025, reporting an 8.5% increase in revenue and a 7.3% rise in operating profit. Despite a 2.2% decrease in packaged meats sales volume, pork sales volume grew by 8.4%, reflecting strong demand in the U.S. and a sufficient supply in China. The company’s efforts to enhance corporate governance and transparency were emphasized, with implications for improved stakeholder trust and market positioning.

The most recent analyst rating on (HK:0288) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on WH Group stock, see the HK:0288 Stock Forecast page.

WH Group Schedules Board Meeting to Review Financial Results

WH Group Limited has announced an upcoming board meeting scheduled for October 28, 2025. The meeting will focus on reviewing and approving the unaudited consolidated financial results for the nine months ending September 30, 2025. This announcement indicates the company’s ongoing commitment to transparency and regular financial reporting, which is crucial for maintaining investor confidence and market stability.

The most recent analyst rating on (HK:0288) stock is a Buy with a HK$9.60 price target. To see the full list of analyst forecasts on WH Group stock, see the HK:0288 Stock Forecast page.