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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

(OTC:0288)

Rating:73Outperform
Price Target:
HK$9.00
▲(11.25% 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 Performance
Operating profit increased driven mainly by the profit turnaround in the US pork segment.
Strategic Initiatives
WH Group remains focused on industrialization, diversification, internationalization, and digitization, strengthening synergies across China, Europe, and the US.
Negative Factors
Market Challenges
Revenue rose 6% y/y to USD6.6bn in 1Q25, with higher slaughtering revenue more than offsetting the decline in packaged meat.
Product Sales
WH Group is targeting to raise volume sales of packaged meat products in China after a 6% decline in 2024.

WH Group (0288) vs. iShares MSCI Hong Kong ETF (EWH)

WH Group Business Overview & Revenue Model

Company DescriptionWH 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 MoneyWH 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 Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q3-2024)
|
% Change Since: 24.21%|
Next Earnings Date:Aug 12, 2025
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue25.94B26.24B28.14B27.29B25.59B
Gross Profit5.37B3.46B5.18B4.54B3.85B
EBITDA3.16B2.00B3.10B2.25B1.57B
Net Income1.61B629.00M1.37B1.07B828.00M
Balance Sheet
Total Assets19.84B19.18B19.86B19.41B18.71B
Cash, Cash Equivalents and Short-Term Investments2.54B1.71B1.54B1.79B2.48B
Total Debt3.72B3.72B3.90B4.50B3.16B
Total Liabilities8.48B8.60B9.44B9.72B7.73B
Stockholders Equity10.66B9.83B9.60B8.75B10.01B
Cash Flow
Free Cash Flow1.81B805.00M826.00M1.04B1.80B
Operating Cash Flow2.52B1.62B1.80B1.96B2.36B
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 Price8.09
Price Trends
50DMA
7.64
Positive
100DMA
7.10
Positive
200DMA
6.39
Positive
Market Momentum
MACD
0.13
Positive
RSI
61.93
Neutral
STOCH
67.95
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 8.09 is above the 20-day moving average (MA) of 7.93, above the 50-day MA of 7.64, and above the 200-day MA of 6.39, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 61.93 is Neutral, neither overbought nor oversold. The STOCH value of 67.95 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

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$103.03B8.1915.73%6.39%-1.46%155.31%
53
Neutral
C$5.27B3.92-2.52%3.52%18.46%5.48%
$128.90M15.381.74%
€73.27M23.600.92%
HK$3.15B10.328.88%
71
Outperform
HK$7.16B37.085.15%1.40%3.95%-42.81%
62
Neutral
HK$8.16B14.135.82%38.41%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0288
WH Group
8.09
3.37
71.36%
QQFSF
Qinqin Foodstuffs Group (Cayman) Company
0.06
-0.01
-14.29%
DE:3DS
Dachan Food (Asia) Limited
0.06
<0.01
20.00%
HK:9977
Shandong Fengxiang Co., Ltd. Class H
1.99
1.00
101.01%
HK:1475
Nissin Foods Co., Ltd.
6.92
2.67
62.82%
HK:1610
COFCO Joycome Foods Limited
1.80
0.23
14.65%

WH Group Corporate Events

WH Group Schedules Board Meeting to Review Interim Results
Jul 11, 2025

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
May 9, 2025

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.

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: Jul 22, 2025