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288

WH GroupSEHK:288 Stock Report

Last Price

HK$5.24

Market Cap

HK$67.2b

7D

7.2%

1Y

-19.6%

Updated

22 Jan, 2022

Data

Company Financials +
288 fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance1/6
Financial Health6/6
Dividends3/6

288 Stock Overview

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.

WH Group Competitors

Tyson Foods

NYSE:TSN

US$32.7b

Hormel Foods

NYSE:HRL

US$26.7b

JBS

BOVESPA:JBSS3

R$84.6b

Beyond Meat

NasdaqGS:BYND

US$3.9b

Price History & Performance

Summary of all time highs, changes and price drops for WH Group
Historical stock prices
Current Share PriceHK$5.24
52 Week HighHK$7.55
52 Week LowHK$4.66
Beta0.77
1 Month Change5.22%
3 Month Change1.75%
1 Year Change-19.63%
3 Year Change-23.62%
5 Year Change-11.49%
Change since IPO-21.32%

Recent News & Updates

Dec 28
WH Group (HKG:288) May Have Issues Allocating Its Capital

WH Group (HKG:288) May Have Issues Allocating Its Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see...

Nov 16
Is WH Group (HKG:288) Using Too Much Debt?

Is WH Group (HKG:288) Using Too Much Debt?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Sep 27
WH Group (HKG:288) May Have Issues Allocating Its Capital

WH Group (HKG:288) May Have Issues Allocating Its Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Aug 17
Is WH Group (HKG:288) Using Too Much Debt?

Is WH Group (HKG:288) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

288HK FoodHK Market
7D7.2%2.4%1.9%
1Y-19.6%-22.2%-13.4%

Return vs Industry: 288 exceeded the Hong Kong Food industry which returned -22.2% over the past year.

Return vs Market: 288 underperformed the Hong Kong Market which returned -13.4% over the past year.

Price Volatility

Is 288's price volatile compared to industry and market?
288 volatility
288 Average Weekly Movement3.5%
Food Industry Average Movement5.5%
Market Average Movement6.7%
10% most volatile stocks in HK Market13.1%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 288 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 288's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1958106,000Gordon Guohttps://www.wh-group.com

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. The company operates through Packaged Meats, Pork, and Others segments. It is also involved in the slaughtering, wholesale, and retail sale of fresh and frozen pork; and hog farming activities.

WH Group Fundamentals Summary

How do WH Group's earnings and revenue compare to its market cap?
288 fundamental statistics
Market CapUS$8.63b
Earnings (TTM)US$1.16b
Revenue (TTM)US$26.44b

7.4x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
288 income statement (TTM)
RevenueUS$26.44b
Cost of RevenueUS$22.40b
Gross ProfitUS$4.04b
ExpensesUS$2.88b
EarningsUS$1.16b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.091
Gross Margin15.28%
Net Profit Margin4.40%
Debt/Equity Ratio25.1%

How did 288 perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

29%

Payout Ratio

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$5.24) is trading below our estimate of fair value (HK$32.98)

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


Price To Earnings Ratio

PE vs Industry: 288 is good value based on its PE Ratio (7.4x) compared to the Hong Kong Food industry average (9.2x).

PE vs Market: 288 is good value based on its PE Ratio (7.4x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 288 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 288 is good value based on its PB Ratio (0.8x) compared to the HK Food industry average (1x).


Future Growth

How is WH Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 288's forecast earnings growth (9.7% per year) is above the savings rate (1.5%).

Earnings vs Market: 288's earnings (9.7% per year) are forecast to grow slower than the Hong Kong market (16.5% per year).

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

Revenue vs Market: 288's revenue (3.6% per year) is forecast to grow slower than the Hong Kong market (11.6% per year).

High Growth Revenue: 288's revenue (3.6% 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 (13.1%).


Past Performance

How has WH Group performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 288 has a large one-off gain of $679.0M impacting its June 30 2021 financial results.

Growing Profit Margin: 288's current net profit margins (4.4%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: 288's earnings have grown by 1.4% 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 (-4.1%) over the past year, making it difficult to compare to the Food industry average (14.4%).


Return on Equity

High ROE: 288's Return on Equity (12.5%) is considered low.


Financial Health

How is WH Group's financial position?


Financial Position Analysis

Short Term Liabilities: 288's short term assets ($8.7B) exceed its short term liabilities ($5.0B).

Long Term Liabilities: 288's short term assets ($8.7B) exceed its long term liabilities ($3.3B).


Debt to Equity History and Analysis

Debt Level: 288's net debt to equity ratio (5.4%) is considered satisfactory.

Reducing Debt: 288's debt to equity ratio has reduced from 54.3% to 25.1% over the past 5 years.

Debt Coverage: 288's debt is well covered by operating cash flow (49.4%).

Interest Coverage: 288's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Dividend

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

3.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 288's dividend (3.33%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.31%).

High Dividend: 288's dividend (3.33%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.95%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.6%), 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 (44.1% payout ratio).


Next Steps

Management

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

0.4yrs

Average management tenure


CEO

Gordon Guo (50 yo)

0.42

Tenure

US$1,000,000

Compensation

Mr. Lijun Guo, also known as Gordon, serves as Chief Executive Officer at WH Group Limited since August 12, 2021 and served as its Chief Financial Officer & Executive Vice President from April 2016 to 11 A...


CEO Compensation Analysis

Compensation vs Market: Gordon's total compensation ($USD1,000.00K) is above average for companies of similar size in the Hong Kong market ($USD705.00K).

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


Leadership Team

Experienced Management: 288's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: 288's board of directors are considered experienced (7.5 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 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
  • Implied Market Cap: HK$67.230b
  • Shares outstanding: 12.83b
  • Website: https://www.wh-group.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 10:04
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
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.