WH Group 0288

[winston]

not vested

<Research Report>BofAML Foresees WH GROUP 2Q US Fresh Pork Biz Better; Rated Buy

Bank of America Merrill Lynch stated in its report that WH GROUP (00288.HK)'s 1Q18 core NPAT stayed flat, stripping away one-off US debt refinancing cost in the same period last year, and foresaw recovery on the US business from 2Q18 on packaged meat's strength and improvement of fresh pork.

The broker rated Buy on the company at the target price $10.6.

Source: AAStocks Financial News

[winston]

not vested

Saved by weaker China hog prices

Results in line with market expectations – 1Q18 was flat, accounting for 19% of consensus
estimates (1Q17: 20%)

Key positives were weaker hog prices and stronger than expected product mix in China, which largely offset less favourable hog/pork value spread in the US

Reiterate BUY, TP unchanged at HK$10.6

Source: DBS

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

[winston]

not vested

<Research Report>BofAML Reiterates Buy on WH GROUP, US-China Trade Consensus Re-rating Catalyst

In Bank of America Merrill Lynch's report, WH GROUP(00288.HK) was reiterated Buy at the target price $10.6, as the broker believed the joint trade statement made by China and America could possibly serve as a re-rating catalyst for the company.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>Daiwa Reiterates WH GROUP (00288.HK) at Buy with TP $10.9

Daiwa, in its report, reiterated WH GROUP (00288.HK) at Buy with target price of $10.9.

The research house said the Chinese business of the company was SHUANGHUI(000895.SZ). Management expected that pork production business will continue to experience consolidation on market in light of rising feed cost and low port price in China.

Yet, WH GROUP said it is not interested in buying present pig farms as restructuring cost is expensive.

Source: AAStocks Financial News

[winston]

not vested

May 24, 2018

<Research Report>Deutsche: WH GROUP(00288.HK)'s Drop Provides Good Entry Point, Rated Buy

Deutsche Bank said in its report that WH GROUP(00288.HK)'s share price has fallen 8% in the past two months, mainly due to weak 1Q18 US margins and market concerns for trade frictions.

The broker believed the share retreat is a good entry point and reiterated Buy on WH GROUP at the target price $11.5.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>C Suisse Downgrades WH GROUP (00288.HK) to Neutral with Target Cut to $8.8

WH GROUP (00288.HK) was downgraded to Neutral from Outperform with target price cut to $8.8 from $11.9 and the gross margin of its US business will remain subdued in 2Q, due to falling pork prices, Credit Suisse said in its report.

Credit Suisse trimmed the 2018E and 2019E adjusted EPS by 26.5% and 24.7% to US$0.06 and US$0.07 to factor in falling pork prices in US.

Source: AAStocks Financial News

[winston]

not vested

World's Largest Pork Producer Becomes Hong Kong's Worst Stock

By Kana Nishizawa and Jeanny Yu

With the company getting more than half of its revenue from the U.S., investors are fleeing the stock ahead of a June 15 deadline for announcing the Chinese products that will be subject to 25 percent tariffs.

WH’s next half-year results will be a "major disappointment" for investors as the expected recovery in the U.S. market is unlikely.

Source: Bloomberg

https://www.bloomberg.com/news/articles ... orst-stock

[winston]

not vested

HK-owned Smithfield Foods, Hormel accused of rigging pork prices

A US federal lawsuit filed Thursday in Minnesota, alleges Hormel Foods Corp and other companies including Smithfield Foods, the United States’ leading pork producer, owned by Hong Kong listed WH Group (0288), colluded to inflate consumer pork prices on such popular products as Ball Park Franks, Spam and Nathan's Famous.

Defendants in the proposed class-action lawsuit included Hormel, based in Austin, Minnesota, and eight other companies, including Tyson Foods , JBS USA and Smithfield Foods.

WH Group says it is the largest pork company in the world with the top market share in China, the U.S. and some markets in Europe.

The law firm bringing the case, Seattle-based Hagens Berman , contends the alleged price-fixing forced consumers to pay high prices for bacon, ham and other pork products.

The lawsuit alleges the companies coordinated their output and limited production ``with the intent and expected result of increasing pork prices in the United States,'' and also exchanged "competitively sensitive'' and "closely guarded non-public information'' about prices, capacity, sales volume and demand.

In 2009, Indiana-based Agri Stats , a provider of data services to agricultural industries, approached the pork companies about creating a benchmarking report that would include financial information, slaughter rates and supply levels, according to the lawsuit.

While benchmark reports are a legal industry tool for gauging a company's performance, the suit alleges the goal was for the companies to use the information to monitor each other's production and pricing "so as to maintain a reduction of production and an increase of price.''

Hormel, maker of Spam luncheon meat, called the allegation erroneous.

"We are confident that any allegations such as these are completely without merit. We intend to vigorously defend this lawsuit,'' Hormel said in a statement to the Star Tribune .

A spokesman for Tyson told The Associated Press in an email Thursday that the Springdale, Arkansas-based company had not received formal notice of the lawsuit and could not comment.

Other defendants include Clemens Food Group , Indiana Packers Corp. , Seaboard Foods and Triumph Foods .

The lawsuit lists a dozen consumers from Minnesota and several other states as plaintiffs. Affected brands include Ball Park Franks, Hillshire Farm, Jimmy Dean, Spam and Nathan's Famous.-

Source: The Standard

http://www.thestandard.com.hk/breaking- ... 0629&sid=2

[winston]

not vested

China’s top ‘butcher’ WH Group posts worse-than-expected profit as trade war hurts US business

The company says its US unit will increase exports to countries like Japan and South Korea, as the trade war continues

The company reported a 7.7 per cent drop in net profit to US$514 million from US$557 million in the year-earlier period as its US and European operations were hurt by lower margins.

Revenue reached US$11.17 billion, up 4.8 per cent from US$10.66 billion after biological fair value adjustments, which is a way to measure value of biological assets including living plants and animals.

Source: SCMP

https://www.scmp.com/business/china-bus ... ted-profit

[winston]

not vested

WH GROUP (00288.HK): No Repurchase Plan So Far

WH GROUP (00288.HK)'s stock price has ridden on a downslope recently as the Sino-US trade war cast a shadow over the company.

The stock closed today at $6.07, near the 52-week low of $5.95.

Chairman cum CEO Wan Long stated during the results announcement press conference that the group has yet to have any repurchase plan in mind.

On another note, according to Kenneth Sullivan, CEO from a subsidiary of WH GROUP that focuses on food industry, the subsidiary's European division has witnessed improved exports performance.

Source: AAStocks Financial News