STOCKS | UBS Cuts WH Group Target Price To HK$9.5, Keeps Buy Rating

UBS cut its target price on WH Group (00288) to HK$9.5 from HK$11 and kept a Buy rating, according to ETNet. The broker said WH Group reported first-half 2026 sales, operating profit and net profit before biological fair value adjustments of $13.827 billion, $1.231 billion and $773 million, up 3%, down 2% and up 7% year on year. Second-quarter sales, operating profit and net profit were $6.833 billion, $618 million and $377 million, flat, down 7% and up 4% respectively. UBS said operating profit missed market expectations, with declines in North America, China and Europe. In North America, second-quarter U.S. operating profit fell 10% year on year to $311 million. Operating profit in the U.S. pork segment rose 20% to $84 million, helped by stronger hog-raising margins on favourable raw material costs, while slaughter margins fell as the pork spread narrowed. The U.S. packaged meat segment posted sales and operating profit declines of 3% and 12%, with volume down 5%, average selling price up 3% and unit profit down 7% to $937 per tonne, partly due to the Easter holiday calendar shift. In China, second-quarter operating profit fell 8% to $203 million. The pork segment recorded an operating profit loss of $5 million, while the packaged meat segment posted sales up 7% and operating profit down 2%. Volume and average selling price rose 3% and 4%, but unit profit fell 6% to $595 per tonne as marketing spending increased. In Europe, second-quarter operating profit dropped 23% to $74 million.