On August 27, WH GROUP fell 3.1% in regular trading, trading at 7.83 HKD/share, with turnover of 121 million HKD. The company is set to review interim results on August 28, with market sentiment leaning cautious.
On the news front, Citi significantly cut WH GROUP's target price from 12.3 HKD to 10.1 HKD, lowering earnings forecasts for 2026-2028 by 6%-11%. The bank's downgrade was triggered by subsidiary Smithfield cutting its full-year adjusted operating profit guidance by 7%, missing market expectations. The shortfall was primarily attributed to declining US hog futures prices, increased industry supply, and inflation-weakened demand. Jefferies and Goldman Sachs also previously lowered their target prices to 11.66 HKD and 11.1 HKD respectively, while Morgan Stanley cut its target to 11.4 HKD. The hog industry remains at a cyclical bottom, with persistently low pork prices continuing to suppress sector valuations.
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