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Market Cap

HK$99.7b

Last Updated

2021/04/19 10:38 UTC

Data Sources

Company Financials +

Executive Summary

WH Group Limited, an investment holding company, engages in the production, wholesale, and retail sale of meat products in China, the United States, and Europe. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has WH Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 288 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 288's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.6%

288

0.3%

HK Food

0.7%

HK Market


1 Year Return

-12.3%

288

27.1%

HK Food

28.1%

HK Market

Return vs Industry: 288 underperformed the Hong Kong Food industry which returned 27.1% over the past year.

Return vs Market: 288 underperformed the Hong Kong Market which returned 28.1% over the past year.


Shareholder returns

288IndustryMarket
7 Day-1.6%0.3%0.7%
30 Day-5.1%-3.7%-0.2%
90 Day-3.6%-1.4%0.2%
1 Year-8.1%-12.3%31.6%27.1%33.4%28.1%
3 Year-10.7%-20.1%25.5%14.6%8.1%-3.8%
5 Year30.0%9.0%53.2%32.0%56.5%28.9%

Long-Term Price Volatility Vs. Market

How volatile is WH Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is WH Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 288 (HK$6.68) is trading below our estimate of fair value (HK$22.51)

Significantly Below Fair Value: 288 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 288 is poor value based on its PE Ratio (15.3x) compared to the HK Food industry average (13.3x).

PE vs Market: 288 is poor value based on its PE Ratio (15.3x) compared to the Hong Kong market (11.8x).


Price to Earnings Growth Ratio

PEG Ratio: 288 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 288 is overvalued based on its PB Ratio (1.3x) compared to the HK Food industry average (0.9x).


Future Growth

How is WH Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 288's forecast earnings growth (15.8% per year) is above the savings rate (1.5%).

Earnings vs Market: 288's earnings (15.8% per year) are forecast to grow slower than the Hong Kong market (18.3% per year).

High Growth Earnings: 288's earnings are forecast to grow, but not significantly.

Revenue vs Market: 288's revenue (3.3% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 288's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 288's Return on Equity is forecast to be low in 3 years time (13.3%).


Past Performance

How has WH Group performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 288 has a large one-off gain of $324.0M impacting its December 31 2020 financial results.

Growing Profit Margin: 288's current net profit margins (3.2%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: 288's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: 288's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 288 had negative earnings growth (-43.4%) over the past year, making it difficult to compare to the Food industry average (11.8%).


Return on Equity

High ROE: 288's Return on Equity (9.9%) is considered low.


Financial Health

How is WH Group's financial position?


Financial Position Analysis

Short Term Liabilities: 288's short term assets ($7.8B) exceed its short term liabilities ($4.1B).

Long Term Liabilities: 288's short term assets ($7.8B) exceed its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: 288's debt to equity ratio (24.4%) is considered satisfactory.

Reducing Debt: 288's debt to equity ratio has reduced from 58.3% to 24.4% over the past 5 years.

Debt Coverage: 288's debt is well covered by operating cash flow (87.9%).

Interest Coverage: 288's interest payments on its debt are well covered by EBIT (9.2x coverage).


Balance Sheet


Dividend

What is WH Group current dividend yield, its reliability and sustainability?

2.61%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 19 2021Ex Dividend DateJun 04 2021Dividend Pay DateJul 07 202133 days from Ex DividendBuy in the next 45 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 288's dividend (2.61%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.95%).

High Dividend: 288's dividend (2.61%) is low compared to the top 25% of dividend payers in the Hong Kong market (5.98%).


Stability and Growth of Payments

Stable Dividend: 288 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 288's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.2%), 288's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 288's dividends in 3 years are forecast to be well covered by earnings (45.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Long Wan (80 yo)

7.5yrs

Tenure

US$4,000,000

Compensation

Mr. Long Wan serves as the Chairman and President at Huamao Shuanghui Industry (Group) Co. Ltd. Mr. Wan serves as the President and General Manager of Henan Shuanghui Industry Group Co., Ltd. He has been t...


CEO Compensation Analysis

Compensation vs Market: Long's total compensation ($USD4.00M) is above average for companies of similar size in the Hong Kong market ($USD912.91K).

Compensation vs Earnings: Long's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 288's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: 288's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

WH Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WH Group Limited
  • Ticker: 288
  • Exchange: SEHK
  • Founded: 1958
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$99.659b
  • Shares outstanding: 14.72b
  • Website: https://www.wh-group.com

Number of Employees


Location

  • WH Group Limited
  • International Commerce Centre
  • Level 76
  • Kowloon
  • Kowloon
  • Hong Kong

Listings


Biography

WH Group Limited, an investment holding company, engages in the production, wholesale, and retail sale of meat products in China, the United States, and Europe. It operates through Packaged Meats, Fresh Po...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/19 10:38
End of Day Share Price2021/04/19 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.