WH Group (0288) AI Stock Analysis

• Market Cap: HK$104.05B
• Dividend Yield: 7.54%
• Average Volume (3M): 23.21M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.40
• Revenue Growth: 5.98%
• EPS Growth: 62.13%
• Country: HK
• Employees: 102,000
• Sector: Consumer Defensive
• Sector Strength: 46
• Industry: Packaged Foods
• EPS (TTM): 0.48
• Shares Outstanding: 12,830,220,000
• 10 Day Avg. Volume: 28,700,633
• 30 Day Avg. Volume: 23,208,602
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 9.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: HK$9.00 ▲(10.02% Upside)

The overall stock score is driven primarily by a strong financial performance and attractive valuation metrics. The technical analysis suggests bullish momentum but highlights potential overbought conditions. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Earnings

Operating profit increased driven mainly by the profit turnaround in the US pork segment.

Financial Performance

Revenue rose 6% y/y to USD6.6bn in 1Q25, with higher slaughtering revenue more than offsetting the decline in packaged meat.

Market Strategy

WH Group is focusing on long-term growth in Europe by targeting high-margin, fast-growing categories like ready-to-eat meals and convenience poultry.

Negative Factors

Domestic Demand

Declining domestic demand, volatility in raw material prices, regulatory changes, food safety issues, disease outbreaks, etc.

Regulatory Environment

Regulatory changes and food safety issues may pose challenges to business operations.

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 through its vertically integrated business model that spans the entire pork production value chain. The company's key revenue streams include hog farming, where it raises pigs for eventual processing; fresh pork, which involves the slaughtering and processing of pigs into raw pork products; and packaged meats, where WH Group produces and sells value-added, branded meat products. Significant contributors to its earnings include its strategic acquisitions, such as the purchase of Smithfield Foods, which expanded its market reach and product offerings. Additionally, the company's ability to leverage economies of scale and optimize its supply chain operations plays a crucial role in maintaining profitability. WH Group also benefits from its extensive distribution network, enabling it to cater to a diverse range of consumer preferences across different regions.

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	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: 8.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 8.18 is above the 20-day moving average (MA) of 7.94, above the 50-day MA of 7.68, and above the 200-day MA of 6.41, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 60.47 is Neutral, neither overbought nor oversold. The STOCH value of 50.55 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	73 Outperform	HK$104.05B	8.27	15.40%	7.54%	5.98%	62.13%
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%
QQFSF	―	$125.06M	33.33	0.79%	―	―	―
3DS	―	€68.47M	23.60	-0.32%	―	―	―
9977	―	HK$3.15B	10.32	8.88%	―	―	―
1475	71 Outperform	HK$7.23B	38.76	5.18%	1.38%	7.44%	-42.52%
1610	62 Neutral	HK$9.03B	13.85	6.29%	―	100.45%	2.89%

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.