Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Equity Bottom-Up

Since our February note <a href="https://www.smartkarma.com/insights/synergies-and-global-ambitions-underappreciated" target="_blank" data-smartkarma-citation="insights:8612">Synergies and Global Ambitions Underappreciated</a>, WH Group's shares have gained 18%. Our recent conference call with the management re-affirmed our belief that it has big plans to become a global food player (the likes of Tyson Foods and Hormel Foods) and not just a pork supplier. With access to a market which loves pork and twice the size of US, current valuations suggest that WH Group's ambitions and potential are still underappreciated.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/024/754/original/FY16%20revenue%20breakdown.png?1492830828" class="editor-image img-responsive" data-smartkarma-image-id="24754"></figure>Source: company slidesIn the near-…

Since our February note Synergies and Global Ambitions Underappreciated, WH Group's shares have gained 18%. Our recent conference call with the management re-affirmed our belief that it has big plans to become a global food player (the likes of Tyson Foods and Hormel Foods) and not just a pork supplier. With access to a market which loves pork and twice the size of US, current valuations suggest that WH Group's ambitions and potential are still underappreciated.Source: company slidesIn the near-…

Call with WH Group Management Re-Affirmed Our Views Company's Global Operations Are Undervalued

WH Group is a transitioning into a global food company but the market is treating it as a commodity business given that it trades at  ~10X FY17 PE vs peer average of 14X. We believe that its synergies and ambitions are not fully appreciated by the market yet.Part of the reason for such low valuation could be the share overhang caused by shareholder CDH, which has been addressed in an earlier piece <a href="https://www.smartkarma.com/insights/wh-group-placement-encouraging-results-and-finally-the-opportunity-for-cdh" target="_blank" data-smartkarma-citation="insights:5455">WH Group Placement: Encouraging Results, and Finally the Opportunity for CDH</a> . In this report, we will discuss how WH Group is: 1. benefitting from "one man's meat is another man's poison"  2. extracting synergies from Smithfield and Clougherty, which is under-appreciated 3. going to benefit from the softer hog prices in 2H16 4. affected by share overhang from CDH, but selling pressure is diminished 5. compared to peers

WH Group is a transitioning into a global food company but the market is treating it as a commodity business given that it trades at  ~10X FY17 PE vs peer average of 14X. We believe that its synergies and ambitions are not fully appreciated by the market yet.Part of the reason for such low valuation could be the share overhang caused by shareholder CDH, which has been addressed in an earlier piece WH Group Placement: Encouraging Results, and Finally the Opportunity for CDH . In this report, we will discuss how WH Group is: 1. benefitting from "one man's meat is another man's poison"  2. extracting synergies from Smithfield and Clougherty, which is under-appreciated 3. going to benefit from the softer hog prices in 2H16 4. affected by share overhang from CDH, but selling pressure is diminished 5. compared to peers

Synergies and Global Ambitions Underappreciated

China

China Yurun Food Group Limited is a meat product supplier in China.  Through its subsidiaries, the Company offers a wide range of raw pork and processed meat products. China Yurun operates production and distribution networks across China.

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China Yurun Food (1068 HK)

Call with WH Group Management Re-Affirmed Our Views Company's Global Operations Are Undervalued

Since our February note Synergies and Global Ambitions Underappreciated, WH Group's shares have gained 18%. Our recent conference call with the...

Valerie Law, CFA

Synergies and Global Ambitions Underappreciated

WH Group is a transitioning into a global food company but the market is treating it as a commodity business given that it trades at ~10X FY17 PE...

Valerie Law, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)