[ET Net News Agency, 10 October 2018] Daiwa Research lowered its target price for WH
Group (00288) to HK$8.2 from HK$9.5, and maintained its "buy" rating.
The research house said WH Group's Henan plant has resumed operations after a 6-week
suspension due to African swine fever. Daiwa expects the suspension to have a mildly
negative impact on the company's 3Q results (due 30 October), given inventory write-offs
and a temporary decline in sales volumes.
It forecast 3Q net profit growth to decelerate to less than 5% YoY (versus 22% YoY in 1Q
and 7% in 2Q). Daiwa cut its 2018-20 EPS forecasts by 1-8% on lower fresh pork margins in
the US. (KL)