[ET Net News Agency, 4 October 2019] Goldman Sachs raised its target price for WH Group
(00288) to HK$9.6 from HK$9.5 and maintained its "buy" rating.
WH Group is scheduled to report 3Q results on 28 October. The research house expects a
solid recovery from both the US and China businesses. It estimated a 33% operating profit
growth driven by the doubling Smithfield profits and stable China profits. This implies a
much faster growth trajectory and margin improvement versus the 12% decline in 1H.
For US-China pork trades, while WH Group is still waiting for clarity on the potential
tariff exemption, Goldman has already started to see an acceleration of China imports from
both private and SOE companies, as suggested by the enlarging hog price gap. (KL)