Summary of WH Group and Shuanghui Conference Call Industry Overview - **Industry**: China Consumer Staples, specifically focusing on the pork and packaged meat sectors Key Points on WH Group - **4Q25 Operating Profit (OP) Growth**: Expected to grow steadily at **10% year-over-year (yoy)**, driven by strong international business performance, while the China segment is anticipated to see a slight decline due to weak hog production and packaged meat sales [1] - **China Business Performance**: Anticipated slight yoy decline in OP due to losses in hog production and flat packaged meat unit profit [1] - **US and International Business**: Strong hog production profits expected, with US profits projected at **US$180 million** for the full year, exceeding company guidance of **US$125 million to US$150 million** [1] - **Efficiency Improvements**: Fresh meat performance expected to improve due to efficiency initiatives and administrative cost savings in Europe, leading to an overall **16% yoy OP growth** in international business [1] - **Net Profit (NP) Expectations**: Anticipated to remain flat yoy primarily due to foreign exchange losses in Europe, higher taxes, and lower contributions from Shuanghui [1] Future Outlook - **1Q26 Expectations**: WH Group is expected to maintain a favorable setup for high single-digit percentage OP growth yoy, with acceleration in China operations due to calendar shift benefits [2] Financial Adjustments - **Profit Adjustments**: WH Group's profit after tax (PAT) raised by **0-1%** for 2025-2027 estimates, while Shuanghui's OP adjusted down by approximately **-1.3% to +1.4%** for the same period [3] - **Target Price (TP) Update**: TP for WH Group increased to **HK$9.8** from **HK$8.9**, reflecting a narrowing net asset value (NAV) discount from **28% to 20%** [3][4] Shuanghui Insights - **Valuation**: Shuanghui's target price remains unchanged at **Rmb 25.0**, with a focus on fair valuation [4] - **Revenue Forecasts**: Slight adjustments in revenue forecasts for meat products and fresh pork, with overall revenues expected to be slightly lower than previous estimates [12] Risks and Considerations - **Key Risks for WH Group**: 1. **US Business Risks**: Potential slowdown in economic activity affecting consumer spending, shifts in consumption trends, and margin pressures from increased costs and regulatory changes [16][17] 2. **China Business Risks**: Volatility in live hog prices and inflation risks in commodities impacting margins [17] 3. **Food Safety Issues**: Any recurrence of food safety problems could negatively impact consumer trust and financial performance [17] Conclusion - WH Group is positioned to achieve solid growth in OP despite challenges in the China market, with strong performance expected from international operations. Adjustments in financial forecasts reflect a cautious but optimistic outlook, with ongoing risks that need to be monitored closely.

Delek US Holdings (DK) Operations and Strategy - Delek Logistics (DKL) reported a record quarter, with run-rate cash flow improvements of $120 million in 2Q'25[11] - DK raised its EOP target to $130-170 million in cash flow improvements[11] - DK returned ~$150 million to shareholders through buybacks and dividends over the last 12 months, representing an approximate 12% yield[11] - DKL is on track to deliver 2025 EBITDA guidance of $480-520 million[11] - DK's value creation journey is tied to EOP (efficiency and optimization plan), SOTP (sum of the parts), and SREs (small refinery exemptions)[14] EOP (Efficiency and Optimization Plan) Progress - EOP aims to improve DK's profitability and free cash flow at constant margins[21] - DK is confident in reaching $130 – 170 million in run-rate cash flow improvements in 2H'2025[21] - Approximately $30 million of cash improvements were realized in 2Q'25 due to EOP initiatives[11, 25] - El Dorado refinery saw ~$1.45/Bbl of EOP improvements in its gross margin during the second quarter[28] Financial Performance - Adjusted EBITDA for 2Q'25 was $170.2 million[47, 52] - Capital expenditures for 2025 YTD totaled $297 million, with $97 million in Refining and $191 million in Logistics[56] - Delek US, excluding DKL net debt, was $275.2 million as of June 30, 2025[59]