Citigroup: Raise WH Group (00288) target price to 8.2 Hong Kong dollars, starting a 30-day upward observation period.
It is estimated that, apart from the slaughter of pigs in China, WH Group's profitability in all regions and business sectors has improved, which will drive its stable core earnings.
Citibank released a research report stating that it is expected WH GROUP (00288) will achieve a low single-digit increase in operating profit for the second quarter, and excluding the one-time tax benefit from the same period last year, the regular benchmark is expected to achieve a mid to high double-digit increase. In terms of business, the bank estimates that, apart from Chinese pork slaughtering, profitability in all regions and business sectors of WH GROUP has improved, which will drive its stable basic profitability. The bank also expects that continued operational improvements, along with favorable commodity price cycles, will support the company's positive outlook for the second half of the year, raising its net profit forecast for 2025 to 27 by 3%, with a target price raised from 7.7 Hong Kong dollars to 8.2 Hong Kong dollars. The bank maintains a "buy" rating and initiates a 30-day short-term observation period for upward movement.
