UBS: Raises WH Group (00288) target price to HK$11, visibility of profit and shareholder returns improvement.

UBS research report pointed out that WH Group (00288) has been one of the bank's top picks in the industry for the past two years, due to the company's unique integrated operating model covering packaged meat products, fresh pork and pork farming, as well as diversified business operations across China, the United States and Europe. The target price has been raised from HK$8.5 to HK$11, and the "buy" rating has been reiterated. Looking ahead, the bank believes that WH Group is entering a phase of lower profit volatility, benefiting from a more stable outlook for US pork prices and a shift in business strategy towards higher-profit packaged meat products, which will enhance visibility of earnings and shareholder returns. The bank has raised WH Group's earnings forecast for 2025 and 2026 by 1% and 4% respectively, expecting year-on-year growth of 7% and 4%.