Citigroup: Raises WH Group (00288) target price to 10.9 Hong Kong dollars. The outlook for this year is good and the dividend yield is high.

Citibank released a research report stating that WH Group (00288) saw a 13% increase in operating profit in the fourth quarter of last year compared to the same period last year, exceeding the bank's expectations. Net profit also grew by 9%, which was higher than expected, mainly due to the favorable prices of commodities and improved operational efficiency in the US pork business. The management aims to maintain the profitability of the US pork farming business in 2026 despite potential cost increases by further improving efficiency. The bank roughly maintains its profit forecast, but has raised the target price from HK$9.5 to HK$10.9 based on a classified sum valuation method. The discount of the holding company has been reduced from 30% to 20% to reflect the improvement in shareholder returns, and maintains a "buy" rating.