WH Group 0288

[winston]

not vested

China finds second African swine fever case at WH Group plant

Some 30 hogs died of the disease at the slaughterhouse in Zhengzhou in central Henan province, the Ministry of Agriculture and Rural Affairs said in a statement.

The pigs had traveled thousands of kilometers from a farm in Jiamusi city in China’s northeastern province of Heilongjiang.

The outbreak comes almost two weeks after another northeastern province, Liaoning, culled thousands of pigs after the discovery of China’s first case of African swine fever.

After the first outbreak in Liaoning, which was also the first in East Asia, Japan suspended imports of heat-treated Chinese pork and has tightened quarantine operations at airports and seaports.

Henan is China’s second-largest pig producer, and is a big supplier to nearby Shandong, Sichuan and Hubei provinces.

Source: Reuters

https://www.reuters.com/article/us-chin ... h%20Report

[winston]

Lean times hit China's top pork butcher

China's WH Group (0288) said yesterday its third-quarter net profit plunged by 30.9 percent to US$199 million (HK$1.56 billion), as lower prices amid higher supplies and trade disputes dented the world's top pork producer's income in the United States.

The sharp decline, based on a comparison of first-half and nine-month numbers released yesterday, underlined challenges faced by the pork-producing sector.

WH Group, which owns US-based Smithfield Foods, said average pork prices in the United States dropped 11.9 percent in the first nine months of the year, due to higher supplies.

Escalating trade friction between Washington and other nations also affected prices, the company said.

In April, China slapped a 25-percent import duty on most U.S. pork items in response to US tariffs on Chinese steel and aluminium products.

Pork products were also included in the second round of tariffs of 25 percent introduced in July.

The Sino-US trade dispute sharply dented US pork exports to China though sales to other markets have increased.

The company's third-quarter revenue fell 3.75 percent year-on-year to US$5.4 billion, according to calculations based on the nine-month statement.

Henan Shuanghui Investment and Development, the group's Chinese business, reported a 1.6 percent rise in net profit for the quarter at 1.24 billion yuan (HK$1.4 billion). Revenue fell 2.82 percent to 12.89 billion yuan.

Hong Kong-listed shares of WH Group have plunged more than 40 percent since Beijing first threatened to hit U.S. pork imports with tariffs as the trade spat escalated between the world's top two economies.

The stock closed 0.36 percent higher at HKD5.62 yesterday.

Source: The Standard

http://www.thestandard.com.hk/section-n ... r=20181031

[winston]

not vested

11 Jan, 2019

<Research Report>G Sachs Raises WH GROUP (00288.HK) TP to $8.6; Rated Buy

Goldman Sachs estimated WH GROUP (00288.HK) to record 29% YoY decline in 4Q18 operating profit, affected by diminishing US slaughtering margin, China-US trade war and African Swine Flu.

This year, WH GROUP's annual profit is expected to recoup by 30% YoY, driven by normalizing US slaughtering profits and narrowing hog production loss.

All in all, WH GROUP's 2018-20 EPS forecasts were finetuned by 0-2%.

The stock was reiterated Buy at a $8.6 target (up from $8.4).

Source: AAStocks Financial News

[winston]

not vested

Re-rating catalysts on the horizon

We hosted WH Group on a non-deal roadshow to address market concerns; we maintain
positive on FY19 as US operations expected to post improvements q-o-q; resolution in trade disputes could be a potential catalyst

Raised FY19F earnings by 4%; reiterate BUY with TP raised to HK$8.01 with improving visibility

Source: DBS


https://researchwise.dbsvresearch.com/R ... VyaWRAQA==

[winston]

not vested

Feb 11, 2019

<Research Report>Deutsche Trims WH GROUP (00288.HK) TP to $9.5; Rated Buy

Deutsche Bank reported the incidents plaguing WH GROUP (00288.HK) last year, including China-US trade war, US-Mexico trade skirmish, and African swine fever breakout in China.

Hence, WH GROUP's 2018 earnings are expected to have receded by 11%.

However, the company will likely see a 16% earnings growth, as things are turning better this year.

WH GROUP was reiterated Buy at a $9.5 target (down from $9.9).

One of the profit drivers was hog price hike with declining supply, as some hog farmers cut their hog production capacity and hog transport suspended across most provinces due to the swine fever.

Source: AAStocks Financial News

[winston]

not vested

2018 profit Drops 4% on +1% Revenue Increase

Source: SCMP

https://www.scmp.com/business/companies ... it-drops-4

[winston]

not vested

<Research Report>BofAML Lifts WH GROUP (00288.HK) TP to $10.1, Rated Buy

Bank of America Merrill Lynch lifted WH GROUP (00288.HK)'s 2019-20E EPS by 4% and 6%.

The company was reiterated Buy, with target raised from $8.9 to $10.1 (up by 13%).

The company was previously projected to record US earnings slide in 1Q19.

However, the broker saw this as a non-event and instead expected a US business recovery from 2Q19, driven by Chinese hog price rally and potential China-US trade talk progress.

Source: AAStocks Financial News

[winston]

not vested

WH GROUP Soars 6% as MOA Expects PRC Hog Prices to Break Record in 4Q

The Ministry of Agriculture and Rural Affairs (MOA), said China's hog prices surged to RMB15.15/kg for the first week of April, rallying 17.4% in just a month.

The hog prices are expected to shatter the 2016 record in 4Q19.

WH GROUP (00288.HK), with target raised to $10.5 by Goldman Sachs, recouped 6.1% to $9.77. Being the strongest bluechip, WH GROUP posted a volume of 115 million shares and turnover of $1.1 billion.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>Daiwa Keeps WH GROUP (00288.HK) at Hold; Target Lifted to $8.5

WH GROUP (00288.HK)'s 1Q19 net profit receded 21% YoY (before biological asset fair value adjustment), dampened by US hog production business.

Daiwa kept WH GROUP at Hold, with target raised from $7.6 to $8.5.

Further, the group's 2019-21 EPS forecasts were revised up by 13%-14%.

Source: AAStocks Financial News

[winston]

not vested

Apr 30, 2019

<Research Report>C Suisse Hikes WH GROUP (00288.HK) TP to $10.7; Reiterated Outperform

WH GROUP (00288.HK) posted 10% YoY and 6% YoY decline in 1Q19 core operating profit and sales, largely consistent with consensus.

Credit Suisse reaffirmed WH GROUP at Outperform, with target raised from $9.8 to $10.7.

Source: AAStocks Financial News