WH Group Shares Drop Nearly 3% as Nine-Month Profit Falls 12.93%; Citi Flags Weak U.S. Hog Price Outlook

Stock News11-02

WH Group (00288) shares fell nearly 3%, down 2.44% at HK$6.21 as of press time, with turnover of HK$86.13 million.

Recently, WH Group released its results for the nine months ended September 30, 2026 (results before biological fair value adjustments). The group recorded revenue of US$20.61 billion during the period, up 0.65% year-on-year; profit attributable to owners of the company was US$1.017 billion, down 12.93% year-on-year.

In the first three quarters, Smithfield Foods, Inc., a controlled subsidiary of the company, recorded revenue of US$10.937 billion for the nine months ended September 27, 2026, down 3.2% year-on-year; net profit attributable to Smithfield was US$574 million, down 13% year-on-year.

Citi said WH Group's third-quarter operating profit fell 30% year-on-year, in line with the bank's expectations, with performance across all regions weaker as anticipated. Management lowered its U.S. operating profit guidance for 2026, and the fourth-quarter outlook for the U.S. business is worse than the bank's previously below-consensus estimate. The weak outlook for U.S. hog prices, combined with a possible rebound in China's pig prices in 2027, both pose unfavorable impacts on the businesses in the two regions.

The bank noted that management reiterated its policy of maintaining a moderately high dividend payout, but the specific payout ratio for Shuanghui remains to be determined.

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