Ge Long Hui·2025-08-15 02:33Core Viewpoint - The report from CICC indicates that WH Group's revenue for Q2 this year reached $6.833 billion, representing an annual growth of 11.8% [1] - Operating profit was $661 million, showing a year-on-year increase of 3.4% [1] - Excluding the impact of a $87 million government subsidy received by the U.S. subsidiary in the same period last year, the core net profit attributable to shareholders increased by 18% year-on-year [1] - The profit for the period met market expectations [1] Company Performance - In the Chinese market, the sales volume of meat products in Q2 grew year-on-year, with significant growth in emerging channels [1] - Sales growth is expected to improve quarter by quarter in the second half of the year, with slight growth anticipated for both annual sales and profit per ton [1] - In the North American market, the sales volume of meat products showed slight year-on-year growth, and profit per ton remained high [1] - The pig farming business in North America is expected to remain optimistic in the second half of the year [1] Investment Outlook - CICC maintains a "outperform industry" rating for WH Group [1] - Given the recent increase in valuations for high dividend-paying sectors, the target price has been raised by approximately 11% to HKD 9.5 [1]