智通财经网·2026-02-02 08:33Core Viewpoint - DBS has released a report indicating that WH Group (00288) is experiencing stabilization in the Chinese market with a recovery in sales, projecting low single-digit growth in packaged meat sales by Q4 2025, primarily due to the expansion of professional distributors and emerging retail channels [1] Summary by Category Chinese Market - WH Group's sales are recovering in China, with expectations of low single-digit growth in packaged meat sales by Q4 2025, benefiting from the expansion of professional distributors and new retail channels [1] - Average selling prices may slightly decline year-on-year due to the introduction of more affordable products, but profitability per ton is expected to remain stable due to lower pork costs [1] - Management aims for mid-single-digit sales growth in 2026, supported by improved price differentials and product structure optimization to drive profit growth [1] US Market - The momentum in the US market continues, with a reduction in hog farming capacity to 11.5 million head aiding profit margin improvement [1] - Favorable pork prices (projected to rise by 9% in 2025) and lower feed costs are expected to support double-digit growth in operating profit for Q4 [1] - Packaged meat sales may see moderate growth in 2026, as pork remains a more affordable protein source compared to beef; pricing power, product mix optimization, and ongoing efficiency improvements are likely to drive mid-single-digit growth in operating profit [1] - The profit outlook for 2026 has been revised upward by 2% based on improved profit prospects in the US and Europe [1]