Macquarie: Maintain "outperform" rating on WH Group (00288) with a target price of HK$9.2.

Macquarie released a research report stating that they maintain their "outperform" rating on WH Group (00288) with a target price of 9.2 Hong Kong dollars. The company announced details of the spin-off of Smithfield, with the company expected to reduce its stake in Smithfield to a maximum of 80% after the spin-off is completed. The report pointed out that after the spin-off, Smithfield Group will mainly operate in the United States and Mexico, while WH Group will focus on domestic and European markets. The report believes that the spin-off of Smithfield will effectively unlock the value of its US and Mexico businesses and increase shareholder returns. WH Group is also expected to use the proceeds from this transaction to expand shareholder returns. Assuming a distribution rate of 41%, the report predicts that WH Group's normal yield will be 5% to 6%.