Skip to Content
Morningstar

WH Group Ltd Shs Unitary 144A/Reg S 00288

Morningstar Rating
Unlock
Stock XHKG Rating as of
HKD 5.32 0.00 (0.00%)
View Full Chart
As of Delayed Price Closed
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Alleviating Pressure on Upstream Business a Tailwind to WH Group Margins

Jacky Tsang

WH Group operates a vertically integrated value chain in the hog industry across China, the US, and Europe. Through its subsidiaries Shuanghui in China and Smithfield in the US, the company engages in hog production, slaughtering, and packaged meat processing and distribution. Shuanghui is a clear market leader in the packaged-meat industry in China, commanding around one third of value share. WH Group derives close to 90% of its operating profit from packaged meat across China and the US, although Smithfield has a lower market share in processed meat versus Hormel, Tyson, and Pilgrim’s Pride. Profitability of this segment tended to be more stable versus the company’s upstream business.

Read Full Report

Price vs Fair Value

View History
00288 is trading at a 423% premium.
Price
HKD 5.32
Fair Value
HKD 5.70
Uncertainty
High
1-Star Price
HKD 17.40
5-Star Price
HKD 8.44
Economic Moat
Lntjstz
Capital Allocation
Gfqykyl

Bulls Say, Bears Say

Bulls

Scalable operations in both the US and China allow WH Group to take advantage of hog price differentials between the two countries and achieve raw material security for its packaged meat business, which is its main profit driver.

Bears

Rising geopolitical tensions between the US and China could turn against WH Group. Unexpected changes in tariffs of imported pork in China could also remove the cost advantage of US pork imports for Shuanghui.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if 00288 is a good fit for your portfolio.
Get 7 Days Free

Trading Information

Previous Close Price
HKD 5.32
Day Range
HKD 5.28–5.43
52-Week Range
HKD 3.88–5.92
Bid/Ask
HKD 5.31 / HKD 5.32
Market Cap
HKD 68.26 Bil
Volume/Avg
22.7 Mil / 27.4 Mil

Key Statistics

Price/Earnings (Normalized)
17.14
Price/Sales
0.33
Dividend Yield (Trailing)
5.47%
Dividend Yield (Forward)
5.47%
Total Yield
5.57%

Company Profile

WH Group is a holding company and the world’s largest vertically integrated producer of pork and related packaged meat products. Its revenue is mainly derived from activities undertaken by its China and US operations, which are respectively via 70.3%-owned Henan Shuanghui Investment & Development Co., or Shuanghui, and wholly owned Smithfield Foods Inc. In the US, its key packaged meats brands, in which it has an 8% market share, include Nathan’s hot dogs, Armour, John Morrell, and Curly’s, while in China, products are mainly under the Shuanghui brand, where it also has a 32% market share. We expect the company’s operating profit to be split almost equally between the US and China going forward with a small contribution from Europe.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Large Value
Total Number of Employees
101,000
Website
https://www.wh-group.com

Competitors

Valuation

View More
Metric
00288
CAG
HRL
Price/Earnings (Normalized)
 17.1411.1522.41
Price/Book Value
 0.891.562.38
Price/Sales
 0.331.181.54
Price/Cash Flow
 5.417.7415.73
Price/Earnings
00288
CAG
HRL

Financial Strength

Metric
00288
CAG
HRL
Quick Ratio
 0.650.290.97
Current Ratio
 1.640.951.73
Interest Coverage
 10.343.3513.34
Quick Ratio
00288
CAG
HRL

Profitability

Metric
00288
CAG
HRL
Return on Assets (Normalized)
 3.13%5.79%6.50%
Return on Equity (Normalized)
 6.26%14.39%11.35%
Return on Invested Capital (Normalized)
 4.90%8.83%8.17%
Return on Assets
00288
CAG
HRL
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Packaged Foods Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NSRGY
Nestle SA ADRHckfbhpgHltf$270.1 Bil
KHC
The Kraft Heinz CoVxtlwnlyMvhg$42.1 Bil
DANOY
Danone SA ADRHdkqqrqjvLkgks$41.2 Bil
GIS
General Mills IncJzbncgfblPgslv$37.6 Bil
K
Kellanova CoChtcnprvmTqzzh$20.6 Bil
MKC
McCormick & Co Inc Registered Shs Non VtgYtsjhykLkwnb$18.8 Bil
HRL
Hormel Foods CorpGgzxvwcmWlrkjb$17.0 Bil
CAG
Conagra Brands IncPgxwqrvfwXbx$14.3 Bil
CPB
Campbell Soup CoTjbpftvnSyzsg$13.2 Bil
LW
Lamb Weston Holdings IncDkynrplgFzvrlwk$12.7 Bil

Sponsor Center