Company Reports

We will discontinue analyst coverage of WH Group on or about Sept. 1, 2026.

WH Group's first-quarter revenue and operating profit rose 7% and 8% year on year, as favorable hog prices and a low year-ago base lifted the China downstream packaged meat business, supporting margins in the process.

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.

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.

WH Group's 2025 revenue and net profit increased by 8% and 9% year on year, respectively, driven by improved profitability in the US upstream segment, supported by rising hog prices and lower feed costs.

China's live hog prices fell 29% year on year in the fourth quarter of 2025 to around CNY 12.40 per kg amid elevated supply. In contrast, US live hog prices rose 3%-5% during the same period, thanks to declining supply, elevated beef prices, and resilient export demand.

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.

WH Group reported third-quarter results, with revenue and operating profit increasing by 8% and 2% year on year, respectively.

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.

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.

WH Group reported first-half 2025 results with sales and operating profit growing by 8.9% and 10.4% year on year, respectively.

WH Group's first-quarter revenue and operating profit increased by 5% and 19% year on year, respectively, as the return to profitability in its upstream fresh pork business more than offset margin headwinds in the downstream packaged meat segment.

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.

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.

Narrow-moat WH Group’s 2024 operating profit of USD 2.4 billion was 5% above our estimate, mainly driven by the fresh pork segment as the price spread between pork and hog prices turned more favorable in the US. The packaged meat segment's operating profit also modestly exceeded our forecast, thanks to favorable raw material costs in China and improved efficiency in the US. We raise our 2025-26 operating profit forecasts by 4%-5% to account for a better fresh pork segment profit outlook, but we leave our longer-term forecasts broadly unchanged. We lift our fair value estimate by 4% to HKD 7.20 per share, which implies 2025 price/earnings of 11 times and enterprise value/EBITDA of 5 times. We see shares as fairly valued currently, while a 2025 dividend yield of 5% is decent.

We assessed the impact of tariff announcements made by the US and China on March 4 on narrow-moat WH Group’s global hog production and packaged meat businesses. In our view, WH Group’s earnings will not be materially hit. We maintain our earnings forecasts and fair value estimate of HKD 6.90 per share. We think shares are fairly valued, though dividend yield remains attractive at 6% in 2025.

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.

We are adjusting the Morningstar Uncertainty Rating for narrow-moat-rated WH Group to Medium from High. We believe that the updated Uncertainty Rating better reflects its risk profile and competitive positioning within the industry, where the profitability of its packaged meat businesses across China and the US has improved since 2022. We maintain our fair value estimate at HKD 6.90 per share for WH Group and continue to view shares as undervalued, with a decent 2025 dividend yield of over 5%.

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.

Narrow-moat WH Group's solid third-quarter results were underpinned by strong margins in the packaged meat businesses across China and US, as well as further improvement in US hog production segment's profitability. Revenue was broadly in line with our estimate, but operating profit exceeded our forecast by 25%. We increased our 2024 operating profit estimate by 19% as we project continued momentum in the fourth quarter. But we left our longer-term forecasts unchanged, as we have already factored in margin normalization. Therefore, our fair value estimate of HKD 6.90 remains intact. WH Group's share price is up more than 20% year to date and currently trading at a 9% discount to our valuation. We think the stock could continue to draw investors' interests given its attractive 2024 dividend yield of 6.9%.