- WH Group‘s net income for the fiscal year was $629 million, which missed estimates.
- The estimated net income was $846.6 million.
- Net income before fair value adjustment was $606 million.
- The company’s revenue was $26.24 billion, falling short of the estimated $26.73 billion.
- Revenue from packaged meats was $13.52 billion, slightly over the estimated $13.45 billion.
- Pork revenue was $10.81 billion, which was slightly lower than the estimated $10.88 billion.
- WH Group sold 3.20 million tons of packaged meats, less than the estimated 3.31 million tons.
- The company also sold 3.96 million metric tons of pork.
- A final dividend per share of 25 HK cents was announced.
- Among analysts, WH Group received 15 buy ratings, 1 hold rating, and 0 sell ratings.
WH Group on Smartkarma
WH Group (288 HK) has been receiving positive coverage from top independent analysts on Smartkarma, an independent investment research network. According to Steve Zhou, CFA, the stock remains a buy with limited downside due to its recovering US business and potential IPO, along with a stable China business. Since his previous insight in October 2023, the stock has seen a 17% increase, significantly outperforming the Hang Seng Index. With a forward PE of 6x, compared to an average of 11x since 2016, the stock is deemed to have strong potential for growth.
In another insight published by Steve Zhou, CFA on Smartkarma, it is suggested that the potential US listing of WH Group‘s US pork business, Smithfield Foods, could be a major catalyst for the stock. Currently trading at a low 5x 2024E PE, the stock is expected to see a significant boost in value if the listing goes through. Since 2016, the company has had an average PE of 11x, indicating that the stock is currently undervalued. With limited downside and a strong potential catalyst, WH Group (288 HK) is considered a buy by analysts on Smartkarma.
A look at WH Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
The long-term outlook for WH Group looks promising, according to the Smartkarma Smart Scores. The company has been given an overall score of 3 out of 5, indicating a positive outlook. This score is based on several factors, including value, dividend, growth, resilience, and momentum.
WH Group Limited operates as a holdings company, providing meat processing services and supplying chilled meat and other related products. The company has been given a score of 3 for value, indicating that it is reasonably priced compared to its competitors. It has also received a score of 3 for dividend, suggesting that it offers a stable dividend to its shareholders. With a growth score of 4, WH Group is expected to experience strong growth in the future. The company has also shown resilience with a score of 3, indicating its ability to weather economic downturns. And finally, the company has received a perfect score of 5 for momentum, suggesting that it is performing well in the market. Overall, the Smartkarma Smart Scores paint a positive long-term outlook for WH Group.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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