WH GROUP's Target Price Raised to HK$10.9 by Citi, Citing Strong Outlook and Attractive Dividend Yield

Stock News03-27 15:02

Citi issued a research report stating that WH GROUP's (00288) operating profit in the fourth quarter of last year increased by 13% year-on-year, exceeding the bank's expectations. Net profit growth of 9% also surpassed forecasts, primarily benefiting from favorable commodity prices and improved operational efficiency in its U.S. pork business. Management aims to maintain the profitability of its U.S. hog farming operations by 2026 through further efficiency gains, despite potential cost increases. The bank largely maintained its earnings forecasts but raised the target price from HK$9.5 to HK$10.9, based on a sum-of-the-parts valuation method. The holding company discount was reduced from 30% to 20% to reflect improved shareholder returns. A "Buy" rating was maintained.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment