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WH Group

SEHK:288
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
288
SEHK
HK$108B
Market Cap
  1. Home
  2. HK
  3. Food, Beverage & Tobacco
Company description

WH Group Limited, an investment holding company, engages in the production, wholesale, and retail sale of meat products in China, the United States, and internationally. The last earnings update was 54 days ago. More info.


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  • WH Group has significant price volatility in the past 3 months.
288 Share Price and Events
7 Day Returns
1.8%
SEHK:288
2.6%
HK Food
0.5%
HK Market
1 Year Returns
4.4%
SEHK:288
-4.3%
HK Food
-15.9%
HK Market
288 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
WH Group (288) 1.8% -2.4% -10.6% 4.4% 24.6% -
HK Food 2.6% -1.6% 5.5% -4.3% 40.6% -13.2%
HK Market 0.5% -4% -8.6% -15.9% 20.6% 3%
1 Year Return vs Industry and Market
  • 288 outperformed the Food industry which returned -4.3% over the past year.
  • 288 outperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
288
Industry
5yr Volatility vs Market

Value

 Is WH Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of WH Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for WH Group.

SEHK:288 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:288
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Food Unlevered Beta Simply Wall St/ S&P Global 0.55
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.545 (1 + (1- 25%) (22.81%))
0.758
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.8 * 6.65%)
7.32%

Discounted Cash Flow Calculation for SEHK:288 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for WH Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:288 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.32%)
2019 1,148.40 Analyst x5 1,070.04
2020 1,205.60 Analyst x5 1,046.69
2021 1,450.80 Analyst x5 1,173.62
2022 1,647.13 Est @ 13.53% 1,241.53
2023 1,813.05 Est @ 10.07% 1,273.34
2024 1,951.79 Est @ 7.65% 1,277.25
2025 2,068.07 Est @ 5.96% 1,261.00
2026 2,166.74 Est @ 4.77% 1,231.02
2027 2,252.12 Est @ 3.94% 1,192.22
2028 2,327.78 Est @ 3.36% 1,148.19
Present value of next 10 years cash flows $11,914.90
SEHK:288 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $2,327.78 × (1 + 2%) ÷ (7.32% – 2%)
$44,631.69
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $44,631.69 ÷ (1 + 7.32%)10
$22,014.83
SEHK:288 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $11,914.90 + $22,014.83
$33,929.73
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $33,929.73 / 14,675.48
$2.31
SEHK:288 Discount to Share Price
Calculation Result
Exchange Rate USD/HKD
(Reporting currency to currency of SEHK:288)
7.827
Value per Share
(HKD)
= Value per Share in USD x Exchange Rate (USD/HKD)
= $2.31 x 7.827
HK$18.1
Value per share (HKD) From above. HK$18.10
Current discount Discount to share price of HK$7.35
= -1 x (HK$7.35 - HK$18.10) / HK$18.10
59.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price WH Group is available for.
Intrinsic value
>50%
Share price is HK$7.35 vs Future cash flow value of HK$18.1
Current Discount Checks
For WH Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • WH Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • WH Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for WH Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are WH Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:288 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.06
SEHK:288 Share Price ** SEHK (2019-06-14) in HKD HK$7.35
SEHK:288 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $0.94
Hong Kong Food Industry PE Ratio Median Figure of 40 Publicly-Listed Food Companies 14.9x
Hong Kong Market PE Ratio Median Figure of 1,487 Publicly-Listed Companies 10.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of WH Group.

SEHK:288 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:288 Share Price ÷ EPS (both in USD)

= 0.94 ÷ 0.06

14.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • WH Group is good value based on earnings compared to the HK Food industry average.
  • WH Group is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does WH Group's expected growth come at a high price?
Raw Data
SEHK:288 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
13.9%per year
Hong Kong Food Industry PEG Ratio Median Figure of 19 Publicly-Listed Food Companies 1.8x
Hong Kong Market PEG Ratio Median Figure of 466 Publicly-Listed Companies 0.76x

*Line of best fit is calculated by linear regression .

SEHK:288 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.61x ÷ 13.9%

1.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • WH Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on WH Group's assets?
Raw Data
SEHK:288 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $0.53
SEHK:288 Share Price * SEHK (2019-06-14) in HKD HK$7.35
SEHK:288 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $0.94
Hong Kong Food Industry PB Ratio Median Figure of 56 Publicly-Listed Food Companies 0.79x
Hong Kong Market PB Ratio Median Figure of 2,169 Publicly-Listed Companies 0.93x
SEHK:288 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:288 Share Price ÷ Book Value per Share (both in USD)

= 0.94 ÷ 0.53

1.78x

* Primary Listing of WH Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • WH Group is overvalued based on assets compared to the HK Food industry average.
X
Value checks
We assess WH Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. WH Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is WH Group expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is WH Group expected to grow at an attractive rate?
  • WH Group's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • WH Group's earnings growth is expected to exceed the Hong Kong market average.
  • WH Group's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:288 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:288 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 13.9%
SEHK:288 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 5.6%
Hong Kong Food Industry Earnings Growth Rate Market Cap Weighted Average 15.9%
Hong Kong Food Industry Revenue Growth Rate Market Cap Weighted Average 9.9%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:288 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:288 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 26,646 2,146 1,467 12
2020-12-31 25,605 1,845 1,385 17
2019-12-31 24,074 1,980 1,255 17
SEHK:288 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 22,605 1,255 943
2018-09-30 22,748 1,424 1,017
2018-06-30 22,890 1,592 1,090
2018-03-31 22,635 1,552 1,112
2017-12-31 22,379 1,512 1,133
2017-09-30 22,059 1,531 1,088
2017-06-30 21,739 1,550 1,042
2017-03-31 21,637 1,700 1,039
2016-12-31 21,534 1,850 1,036
2016-09-30 21,496 1,756 1,035
2016-06-30 21,457 1,661 1,034
2016-03-31 21,333 1,637 910

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • WH Group's earnings are expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).
  • WH Group's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:288 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from WH Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:288 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.10 0.12 0.09 9.00
2020-12-31 0.09 0.12 0.08 13.00
2019-12-31 0.09 0.09 0.08 13.00
SEHK:288 Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.06
2018-09-30 0.07
2018-06-30 0.07
2018-03-31 0.08
2017-12-31 0.08
2017-09-30 0.08
2017-06-30 0.08
2017-03-31 0.08
2016-12-31 0.08
2016-09-30 0.08
2016-06-30 0.08
2016-03-31 0.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • WH Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess WH Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
WH Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has WH Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare WH Group's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • WH Group has delivered over 20% year on year earnings growth in the past 5 years.
  • WH Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • WH Group's 1-year earnings growth is negative, it can't be compared to the HK Food industry average.
Earnings and Revenue History
WH Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from WH Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:288 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 22,605.00 943.00 2,892.00
2018-09-30 22,747.50 1,016.50 2,907.50
2018-06-30 22,890.00 1,090.00 2,923.00
2018-03-31 22,634.50 1,111.50 2,855.50
2017-12-31 22,379.00 1,133.00 2,788.00
2017-09-30 22,059.00 1,087.50 2,730.00
2017-06-30 21,739.00 1,042.00 2,672.00
2017-03-31 21,636.50 1,039.00 2,630.50
2016-12-31 21,534.00 1,036.00 2,589.00
2016-09-30 21,495.50 1,035.00 2,603.00
2016-06-30 21,457.00 1,034.00 2,617.00
2016-03-31 21,333.00 910.00 2,611.50
2015-12-31 21,209.00 786.00 2,606.00
2015-09-30 21,558.50 662.00 2,558.50
2015-06-30 21,908.00 538.00 2,511.00
2015-03-31 22,292.50 510.50 2,538.00
2014-12-31 22,243.00 766.00 2,498.00
2014-09-30 20,369.00 427.50 2,183.50
2014-06-30 18,495.00 89.00 1,869.00
2014-03-31 14,752.00 19.00 1,364.00
2013-12-31 11,253.00 -263.00 916.00
2012-12-31 6,243.00 325.00 454.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • WH Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • WH Group used its assets more efficiently than the HK Food industry average last year based on Return on Assets.
  • WH Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess WH Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
WH Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is WH Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up WH Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • WH Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • WH Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of WH Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from WH Group Company Filings, last reported 5 months ago.

SEHK:288 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 8,418.00 3,144.00 842.00
2018-09-30 8,418.00 3,144.00 842.00
2018-06-30 8,210.00 3,392.00 784.00
2018-03-31 8,210.00 3,392.00 784.00
2017-12-31 8,222.00 3,226.00 1,371.00
2017-09-30 8,222.00 3,226.00 1,371.00
2017-06-30 7,305.00 3,418.00 747.00
2017-03-31 7,305.00 3,418.00 747.00
2016-12-31 7,038.00 2,902.00 1,139.00
2016-09-30 7,038.00 2,902.00 1,139.00
2016-06-30 6,893.00 3,774.00 1,032.00
2016-03-31 6,893.00 3,774.00 1,032.00
2015-12-31 6,703.00 3,938.00 1,534.00
2015-09-30 6,703.00 3,938.00 1,534.00
2015-06-30 6,346.00 4,402.00 1,073.00
2015-03-31 6,346.00 4,402.00 1,073.00
2014-12-31 6,050.00 4,695.00 1,187.00
2014-09-30 6,050.00 4,695.00 1,187.00
2014-06-30 3,448.00 7,569.00 823.00
2014-03-31 3,185.00 7,760.00 924.00
2013-12-31 3,138.00 7,458.00 1,026.00
2012-12-31 2,550.00 194.00 788.00
  • WH Group's level of debt (37.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (237.7% vs 37.3% today).
  • Debt is well covered by operating cash flow (39.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.1x coverage).
X
Financial health checks
We assess WH Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. WH Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.71%
Current annual income from WH Group dividends. Estimated to be 4.2% next year.
If you bought HK$2,000 of WH Group shares you are expected to receive HK$54 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • WH Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • WH Group's dividend is below the markets top 25% of dividend payers in Hong Kong (5.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:288 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Hong Kong Food Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:288 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.04 11.00
2020-12-31 0.04 15.00
2019-12-31 0.04 15.00
SEHK:288 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-23 0.025 2.567
2018-06-04 0.034 4.169
2017-03-23 0.033 3.248
2016-09-12 0.013 1.598
2016-08-22 0.013 1.634
2016-05-23 0.016 2.068

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • WH Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but WH Group only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of WH Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess WH Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can WH Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. WH Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of WH Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Long Wan
COMPENSATION $8,000,000
AGE 78
TENURE AS CEO 5.7 years
CEO Bio

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 the Chief Executive Officer at WH Group Limited since October 2013, Chairman since November 26, 2010 and Executive Director since October 16, 2007. He has been the Chairman of Henan Shuanghui Development since August 20, 2012 and also serves as its Chief Executive Officer. He oversees operations for Shuanghui Group’s meat and logistics operations. He has over 40 years of experience in the meat processing industry. He has been a Representative of the Ninth to Twelfth China's National People's Congress in 1998, 2003, 2008 and 2013. He served as the President and General Manager of Henan Shuanghui Investment & Development Co. Ltd. He joined Henan Luohe Meat Products Processing United Factory in May 1968 and became the General Manager of the Factory in 1984. He has been the Chairman of Henan Shuanghui Investment & Development Co. Ltd. since August 20, 2012 and serves as its Non-Independent Director. Mr. Wan serves as the Chairman of Henan Luohe Shuanghui Industry Group Limited Liability Company. He has been the Chairman of Smithfield Foods, Inc. since September 26, 2013. He served as the Chairman of Henan Shuanghui Industry Group Co., Ltd., and Shuanghui International Holdings Limited. He served as Vice Chairman at Campofrio Food Group, S.A.U. and also served as its Director from June 25, 2014 to November 20, 2015. He serves as a Director of Henan Shuanghui Industry Group Co., Ltd. He served as an Executive Director of the China Meat Association until December 2011 and a Senior Consultant of the China Meat Association since 2001. He serves as a Director of the World Meat Association. Mr. Wan received his Professional Certificate in Business Management from the Henan University of Animal Husbandry and Economy, The Henan Business College in May 1991 and was awarded the Senior Economist Professional qualification issued by the Henan Province Advanced Professional Titles Adjudication Committee (Economic Disciplines) in July 1999.

CEO Compensation
  • Long's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Long's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the WH Group management team in years:

5.3
Average Tenure
51
Average Age
  • The average tenure for the WH Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Long Wan

TITLE
Chairman of the Board & CEO
COMPENSATION
$8M
AGE
78
TENURE
5.7 yrs

Hongjian Wan

TITLE
Deputy Chairman & VP
AGE
50

Gordon Guo

TITLE
CFO, Executive VP & Executive Director
COMPENSATION
$3M
AGE
47
TENURE
5.4 yrs

Ken Sullivan

TITLE
Executive Director
COMPENSATION
$4M
AGE
54
TENURE
3.5 yrs

Xiangjie Ma

TITLE
President of Shuanghui Development & Executive Director
AGE
46
TENURE
1.5 yrs

Luis Chein

TITLE
Group Director and Head of Investor Relations

Ho Chau

TITLE
Chief Legal Officer & Company Secretary
AGE
52
TENURE
5.3 yrs
Board of Directors Tenure

Average tenure and age of the WH Group board of directors in years:

4.9
Average Tenure
54
Average Age
  • The tenure for the WH Group board of directors is about average.
Board of Directors

Long Wan

TITLE
Chairman of the Board & CEO
COMPENSATION
$8M
AGE
78
TENURE
8.6 yrs

Hongjian Wan

TITLE
Deputy Chairman & VP
AGE
50
TENURE
0.8 yrs

Gordon Guo

TITLE
CFO, Executive VP & Executive Director
COMPENSATION
$3M
AGE
47
TENURE
5.5 yrs

Ken Sullivan

TITLE
Executive Director
COMPENSATION
$4M
AGE
54
TENURE
3.4 yrs

Xiangjie Ma

TITLE
President of Shuanghui Development & Executive Director
AGE
46
TENURE
1 yrs

Ming Huang

TITLE
Independent Non-Executive Director
AGE
54
TENURE
4.9 yrs

Conway Lee

TITLE
Independent Non-Executive Director
AGE
64
TENURE
4.9 yrs

Zhen Jiao

TITLE
Non-Executive Director
AGE
52
TENURE
13.2 yrs

Don Lau

TITLE
Independent Non-Executive Director
AGE
62
TENURE
4.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
26. Apr 19 Sell Mondrian Investment Partners Limited Company 24. Apr 19 24. Apr 19 -12,825,000 HK$9.50 HK$-121,858,015
21. Mar 19 Sell Mondrian Investment Partners Limited Company 19. Mar 19 19. Mar 19 -14,323,500 HK$8.53 HK$-122,178,048
11. Mar 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 06. Mar 19 06. Mar 19 -5,140,615 HK$7.20 HK$-37,002,663
08. Mar 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 05. Mar 19 05. Mar 19 3,880,463 HK$7.03 HK$27,294,409
26. Feb 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 21. Feb 19 21. Feb 19 -6,087,293 HK$7.62 HK$-46,362,666
20. Feb 19 Buy J.P. Morgan Asset Management, Inc. Company 15. Feb 19 15. Feb 19 2,376,525 HK$7.23 HK$17,171,339
17. Dec 18 Buy Lijun Guo Individual 12. Dec 18 12. Dec 18 100,000 HK$6.10 HK$610,000
17. Dec 18 Buy Lijun Guo Individual 14. Dec 18 14. Dec 18 1,799,000 HK$6.00 HK$10,797,602
10. Oct 18 Buy Mondrian Investment Partners Limited Company 08. Oct 18 08. Oct 18 14,065,000 HK$5.79 HK$81,374,499
01. Oct 18 Sell J.P. Morgan Asset Management, Inc. Company 26. Sep 18 26. Sep 18 -15,632,500 HK$5.62 HK$-87,776,483
01. Oct 18 Buy J.P. Morgan Asset Management, Inc. Company 26. Sep 18 26. Sep 18 16,563,500 HK$5.62 HK$93,004,047
01. Oct 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 26. Sep 18 26. Sep 18 258,880 HK$5.62 HK$1,453,611
01. Oct 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 26. Sep 18 26. Sep 18 -14,803,039 HK$5.62 HK$-83,119,059
28. Sep 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 25. Sep 18 25. Sep 18 11,972,340 HK$5.60 HK$67,006,830
27. Sep 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 24. Sep 18 24. Sep 18 -12,710,812 HK$5.50 HK$-69,880,261
13. Aug 18 Buy Mondrian Investment Partners Limited Company 10. Aug 18 10. Aug 18 7,926,500 HK$6.15 HK$48,786,026
X
Management checks
We assess WH Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. WH Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is WH Group Limited's (HKG:288) Stock Available For A Good Price After Accounting For Growth?

Growth expectations for WH Group Limited (HKG:288) are high, but many investors are starting to ask whether its last close at HK$7.56 can still be rationalized by the future potential. … But, to be able to properly assess the value of a high-growth stock such as WH Group, we must incorporate its earnings growth in our valuation. … A PE ratio of 15x and expected year-on-year earnings growth of 14% give WH Group an acceptable PEG ratio of 1.08x.

Simply Wall St -

There's An Opportunity With WH Group Limited (HKG:288)

View our latest analysis for WH Group WH Group Limited, an investment holding company, engages in the production, wholesale, and retail sale of meat products in China, the United States, and internationally. … So, large-cap stocks are a safe bet to buy more of when the stock market is selling off. … Characteristics I value in a long term investment are proven in WH Group, and I can continue to sleep easy at night with the stock as part of my portfolio.

Simply Wall St -

Interested In WH Group Limited (HKG:288)’s Upcoming US$0.15 Dividend? You Have 3 Days Left

Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … View our latest analysis for WH Group How I analyze a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is it paying an annual yield above 75% of dividend payers? … In terms of its peers, WH Group generates a yield of 2.8%, which is high for Food stocks but still below the market's top dividend payers.

Simply Wall St -

WH Group Limited (HKG:288) Insiders Increased Their Holdings

So before you buy or sell WH Group Limited (HKG:288), you may well want to know whether insiders have been buying or selling. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … But because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Simply Wall St -

All You Need To Know About WH Group Limited's (HKG:288) Financial Health

Common characteristics for these big stocks are their strong balance sheet and high liquidity, which means there's plenty of stocks available to the public for trading. … These companies are resilient in times of low liquidity and are not as strongly impacted by interest rate hikes as companies with lots of debt. … Using the most recent data for 288, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment.

Simply Wall St -

What Are Analysts Saying About The Future Of WH Group Limited's (HKG:288)?

Looking at WH Group Limited's (HKG:288) earnings update in December 2018, … analyst consensus outlook appear cautiously optimistic, … with earnings expected to grow by 25% in the upcoming year,

Simply Wall St -

Do Directors Own WH Group Limited (HKG:288) Shares?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … We'd expect to see both institutions and retail investors owning a portion of the company.

Simply Wall St -

Did WH Group's (HKG:288) Share Price Deserve to Gain 53%?

For example, WH Group Limited (HKG:288) shareholders have seen the share price rise 53% over three years, well in excess of the market return (32%, not including dividends). … WH Group was able to grow its EPS at 3.8% per year over three years, sending the share price higher. … In comparison, the 15% per year gain in the share price outpaces the EPS growth.

Simply Wall St -

What Can We Learn From WH Group Limited’s (HKG:288) Investment Returns?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Our Take On WH Group Limited's (HKG:288) CEO Salary

How Does Long Wan's Compensation Compare With Similar Sized Companies. … Our data indicates that WH Group Limited is worth HK$125b, and total annual CEO compensation is US$291m. … We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$465k

Simply Wall St -

Company Info

Description

WH Group Limited, an investment holding company, engages in the production, wholesale, and retail sale of meat products in China, the United States, and internationally. It operates through Packaged Meats, Fresh Pork, Hog Production, and Others segments. It is also involved in the slaughtering, wholesale, and retail sale of fresh and frozen meat; and hog farming activities. In addition, the company engages in the manufacture and sale of packaging materials; provision of logistics services; operation of a chain of retail grocery stores; and production of flavoring ingredients and natural casings and biological pharmaceutical materials. Further, it is involved in the livestock breeding and slaughtering activities. The company was formerly known as Shuanghui International Holdings Limited and changed its name to WH Group Limited in January 2014. The company was founded in 1958 and is headquartered in Kowloon, Hong Kong. WH Group Limited is a subsidiary of Heroic Zone Investments Limited.

Details
Name: WH Group Limited
288
Exchange: SEHK
Founded: 1958
HK$107,864,778,000
14,675,480,000
Website: http://www.wh-group.com
Address: WH Group Limited
International Commerce Centre,
Level 76,
Kowloon,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 288 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 05. Aug 2014
OTCPK WHGR.F Ordinary Shares Pink Sheets LLC US USD 05. Aug 2014
DB 0WH Ordinary Shares Deutsche Boerse AG DE EUR 05. Aug 2014
SHSC 288 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 05. Aug 2014
SZSC 288 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 05. Aug 2014
OTCPK WHGL.Y SPONSORED ADR Pink Sheets LLC US USD 11. Nov 2014
Number of employees
Current staff
Staff numbers
112,000
WH Group employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 12:53
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/13
Last earnings filing: 2019/04/23
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.