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WH Group Limited (HK:0288)
:0288
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WH Group (0288) AI Stock Analysis

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HK:0288

WH Group

(0288)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
HK$9.50
▲(9.20% 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 (0288) vs. iShares MSCI Hong Kong ETF (EWH)

WH Group Business Overview & Revenue Model

Company DescriptionWH Group Limited (stock code: 0288) is a leading global food company headquartered in Hong Kong, primarily engaged in the production and processing of pork products. The company operates through various segments, including the Pork segment, which encompasses the breeding, production, processing, and sale of pork, and the Packaged Foods segment, which involves the production and sale of packaged food products. WH Group is known for its strong market presence in both China and the United States, leveraging its extensive supply chain and brand portfolio to deliver high-quality meat products.
How the Company Makes MoneyWH 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 Earnings Call Summary

Earnings Call Date:Oct 29, 2024
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Mar 31, 2026
Earnings Call Sentiment Neutral
The earnings call reflected significant profit growth and improvements in North America and Europe, countered by declines in sales volume and revenue, particularly in China. Despite challenges, strategic cost management and market adjustments in the U.S. drove substantial profitability gains.
Q3-2024 Updates
Positive Updates
Significant Profit Growth
EBITDA increased by 38.9% to $2.25 billion, operating profit increased by 71% to $1.79 billion, and profit attributable to owners increased by 90% to $1.0 billion compared to last year.
Strong North America Performance
Operating profit in North America increased by 589% to $841 million, with packaged meats profit increasing by 11.6% and pork business turning from a loss to a profit.
European Business Growth
Operating profit in Europe increased by 64.2% to $225 million, with packaged meats' operating profit up 50% and pork business profit up 64% compared to last year.
Improved Cost Structure in U.S. Hog Production
U.S. hog production turned profitable with a cost reduction of 30% in feed costs, driven by genetic improvements and better health management.
Negative Updates
Decline in Packaged Meats and Pork Volume
Packaged meats sold declined by 4.4% and pork sold volume decreased by 7.6% year-over-year.
Revenue Decline
Total revenue decreased by 3.2% to USD 18.8 billion year-over-year.
Challenges in China's Pork Business
Operating profit in China's pork business declined by 30.5% year-over-year.
Volume Decrease in U.S. Packaged Meats
Volume slowdown driven by high food inflation and reduction in government support programs.
Company Guidance
During the Q3 2024 earnings call for WH Group, the company reported a total revenue of USD 18.8 billion, marking a year-over-year decline of 3.2%. Despite this, significant improvements were noted in profitability metrics: EBITDA increased by 38.9% to $2.25 billion, operating profit surged by 71% to $1.79 billion, and profit attributable to owners rose by 90% to $1.0 billion. Basic EPS also saw a 90% improvement, reaching $8.43. The packaged meats segment contributed 52.5% to the revenue and a substantial 93.8% to the operating profit, while the pork business accounted for 40.1% of revenue and 12.3% of operating profit. Regionally, North America was the main revenue generator with 52.5%, followed by China at 33%, and Europe at 14.5%. The call also highlighted market dynamics, such as rising hog prices in China and declining hog prices in Europe. Looking forward, WH Group plans to maintain its market position by optimizing operations, enhancing cost management, and leveraging its diversified business model across various 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
70
Positive
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
75
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.04B25.94B26.24B28.14B27.29B25.59B
Gross Profit5.22B5.37B3.46B5.18B4.54B3.85B
EBITDA3.03B3.16B2.00B3.10B2.25B1.57B
Net Income1.62B1.61B629.00M1.37B1.07B828.00M
Balance Sheet
Total Assets20.85B19.84B19.18B19.86B19.41B18.71B
Cash, Cash Equivalents and Short-Term Investments2.98B2.54B1.71B1.82B1.79B2.48B
Total Debt4.35B3.72B3.72B3.90B4.50B3.16B
Total Liabilities8.79B8.48B8.60B9.44B9.72B7.73B
Stockholders Equity10.93B10.66B9.83B9.60B8.75B10.01B
Cash Flow
Free Cash Flow1.95B1.81B805.00M826.00M1.04B1.80B
Operating Cash Flow2.60B2.52B1.62B1.80B1.96B2.36B
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
Positive
Last Price8.70
Price Trends
50DMA
7.97
Positive
100DMA
7.75
Positive
200DMA
6.93
Positive
Market Momentum
MACD
0.25
Negative
RSI
74.54
Negative
STOCH
87.52
Negative
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 8.7 is above the 20-day moving average (MA) of 7.88, above the 50-day MA of 7.97, and above the 200-day MA of 6.93, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 74.54 is Negative, neither overbought nor oversold. The STOCH value of 87.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0288.

WH Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$99.56B7.9115.40%6.83%5.98%62.13%
67
Neutral
HK$6.95B36.885.55%1.52%7.29%-33.19%
63
Neutral
$1.01B96.400.79%0.00%-1.70%104.41%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
58
Neutral
HK$7.61B11.676.29%100.45%2.89%
54
Neutral
HK$619.88M76.540.34%1.59%-56.45%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0288
WH Group
8.70
3.17
57.38%
HK:1583
Qinqin Foodstuffs Group (Cayman) Company
1.32
0.31
30.43%
HK:3999
Dachan Food (Asia) Limited
0.62
0.00
0.00%
HK:1475
Nissin Foods Co., Ltd.
6.25
1.55
32.98%
HK:1610
COFCO Joycome Foods Limited
1.63
0.14
9.40%

WH Group Corporate Events

WH Group Reports Strong Growth in Pork Segment
Oct 30, 2025

WH Group Limited, a leading global pork company, operates in the packaged meats and pork sectors, with a significant presence in China, North America, and Europe. In its latest earnings report for the nine months ended September 30, 2025, WH Group announced an 8.5% increase in revenue to $20.477 billion, alongside a 7.3% rise in operating profit, reflecting robust performance in its pork segment despite a slight decline in packaged meats sales volume.

Smithfield Foods Reports Strong Nine-Month Financial Performance
Oct 28, 2025

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
Oct 28, 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
Oct 28, 2025

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
Oct 2, 2025

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.

WH Group Announces Special Dividend for Shareholders
Sep 22, 2025

WH Group Limited has announced a special dividend of HK$0.3 per ordinary share as a reward to its shareholders for their ongoing support. The dividend will be paid in cash on October 22, 2025, to shareholders listed on the register by October 13, 2025. The register of members will be closed from October 9 to October 13, 2025, to determine shareholder eligibility for the dividend.

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.

WH Group Declares Special Dividend, Strengthening Market Position
Sep 22, 2025

WH Group Limited has announced a special cash dividend of HKD 0.3 per share, with the ex-dividend date set for October 6, 2025, and payment scheduled for October 22, 2025. This announcement reflects the company’s robust financial health and commitment to delivering shareholder value, potentially enhancing its market position and investor confidence.

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.

WH Group Considers Special Dividend Following Smithfield Offering
Sep 10, 2025

WH Group Limited has announced that its board of directors is considering the declaration and payment of a special dividend to shareholders, contingent upon the completion of a secondary public offering of shares in its subsidiary, Smithfield Foods Inc. If approved, the resolution for the special dividend will be made on or around September 22, 2025. This potential move indicates WH Group’s strategic financial planning and could have implications for its shareholders and market positioning.

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.

WH Group Chairman Invests in Smithfield Secondary Offering
Sep 7, 2025

WH Group Limited announced that Mr. Wan, the Chairman of the Board, has agreed to purchase 1,800,000 shares in the Smithfield Secondary Offering for approximately US$41.85 million. This transaction underscores Mr. Wan’s confidence in Smithfield’s future development and is considered beneficial for the company and its shareholders. Despite not being a regular business activity for WH Group, the board views the transaction as fair and reasonable, with Smithfield remaining a subsidiary and its financial results consolidated into WH Group’s statements.

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.

WH Group Announces Pricing of Smithfield Secondary Offering
Sep 5, 2025

WH Group Limited announced the pricing of a secondary public offering of 19,531,698 shares of Smithfield Foods, Inc. at $23.25 per share. This offering, managed by major financial institutions, is expected to close on September 8, 2025, and will result in WH Group retaining approximately 87.8% ownership of Smithfield, or 87.0% if additional shares are purchased by underwriters.

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.

WH Group Announces Smithfield Secondary Offering
Sep 3, 2025

WH Group Limited announced a secondary public offering of 16,000,000 shares of its subsidiary, Smithfield Foods, Inc., through SFDS UK Holdings Limited. This offering, managed by Morgan Stanley, BofA Securities, and Barclays, will not result in Smithfield selling any shares or receiving proceeds. The offering is part of WH Group’s strategic move to reduce its shareholding in Smithfield, following a previous IPO in January 2025. Despite this reduction, Smithfield will remain a subsidiary of WH Group, and the transaction will not require additional disclosure under Hong Kong’s Listing Rules.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 13, 2025