WH GROUP (00288) saw its shares rise nearly 3% before noon. As of the time of writing, the stock was up 2.73%, trading at HK$9.4, with a turnover of HK$92.9006 million. A DBS research report noted that WH GROUP is showing signs of stabilization in the Chinese market, with a recovery in sales volumes. The report forecasts that WH GROUP will achieve low single-digit growth in packaged meat sales volume in the fourth quarter of 2025, an improvement over previous quarters, primarily driven by the expansion of specialized distributors and emerging retail channels. While the average selling price may see a slight year-on-year decline due to the launch of more affordable products, profitability per ton is expected to remain largely stable, supported by lower pork costs. For 2026, management targets mid-single-digit sales volume growth, with profit growth supported by improved price spreads and optimized product mix. Regarding the US market, the report indicated that the company's growth momentum continues. Streamlining hog farming capacity to 11.5 million head is aiding margin improvement, and coupled with favorable hog prices (up 9% in 2025) and lower feed costs, these factors are expected to support a double-digit increase in operating profit for the fourth quarter. In 2026, packaged meat sales volume is likely to see modest growth, as pork remains a more affordable protein source compared to beef; pricing power, product mix optimization, and ongoing efficiency improvements are anticipated to drive mid-single-digit growth in operating profit. Based on an improved profit outlook (for instance, in the US and Europe), the report raised the company's earnings forecast for the 2026 fiscal year by 2%.
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