Core Viewpoint - Wan Cheng International (00288) shows signs of recovery in the Chinese market, with expected growth in packaged meat sales driven by the expansion of professional distributors and emerging retail channels [1] Group 1: Chinese Market Performance - The company’s sales in China are stabilizing, with a forecasted low single-digit growth in packaged meat sales by Q4 2025, benefiting from the expansion of distribution 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 a mid-single-digit sales growth in 2026, supported by improved price differentials and product structure optimization [1] Group 2: U.S. Market Performance - The growth momentum in the U.S. market continues, with a reduction in hog farming capacity to 11.5 million heads expected to enhance profit margins [1] - Favorable pork prices, projected to rise by 9% in 2025, along with lower feed costs, are anticipated to support double-digit growth in operating profit for Q4 [1] - In 2026, moderate growth in packaged meat sales is expected, as pork remains a more affordable protein source compared to beef, with pricing power and product mix optimization likely to drive mid-single-digit growth in operating profit [1] Group 3: Earnings Forecast - Based on improved profit outlooks in the U.S. and Europe, the company’s earnings forecast for the fiscal year 2026 has been raised by 2% [1]

Core Viewpoint - Wan Zhou International (00288) shows signs of recovery in the Chinese market, with expected growth in packaged meat sales driven by the expansion of professional distributors and emerging retail channels [1] Group 1: Chinese Market Performance - The company is expected to achieve low single-digit growth in packaged meat sales by Q4 2025, which is an improvement compared to previous quarters [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 [1] Group 2: U.S. Market Performance - The growth momentum in the U.S. market continues, with a reduction in hog farming capacity to 11.5 million heads expected to enhance profit margins [1] - Favorable pork prices, projected to rise by 9% in 2025, along with lower feed costs, are anticipated to support double-digit growth in operating profit for Q4 [1] - In 2026, moderate growth in packaged meat sales is expected, as pork remains a more affordable protein source compared to beef; pricing power, product mix optimization, and ongoing efficiency improvements may drive mid single-digit growth in operating profit [1] Group 3: Earnings Forecast - Based on improved profit outlooks in the U.S. and Europe, the company's earnings forecast for the fiscal year 2026 has been raised by 2% [1]

Group 1 - The core viewpoint of the report indicates that WH Group (万洲国际) is experiencing stabilization in the Chinese market with a recovery in sales, expecting low single-digit growth in packaged meat sales by Q4 2025, driven by the expansion of professional distributors and emerging retail channels [1] - The average selling price may see a slight year-on-year decline due to the introduction of more affordable products, but profitability per ton is expected to remain stable due to lower pork costs [1] - For 2026, management aims for mid-single-digit sales growth, supported by improved price differentials and product mix optimization to drive profit growth [1] Group 2 - In the U.S. market, momentum continues with a reduction in hog farming capacity to 11.5 million heads, which is expected to enhance profit margins, alongside favorable pork prices projected to rise by 9% in 2025 and lower feed costs, supporting double-digit growth in operating profit for Q4 [1] - In 2026, packaged meat sales are expected to grow moderately, as pork remains a more affordable protein source compared to beef; pricing power, product mix optimization, and ongoing efficiency improvements may drive mid-single-digit growth in operating profit [1] - The firm has raised its earnings forecast for FY2026 by 2% based on improved profit outlooks in the U.S. and Europe [1]

Core 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]

Core Viewpoint - DBS Research indicates that WH Group 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] Group 1: Chinese Market Insights - Sales recovery in the Chinese market is expected to lead to low single-digit growth in packaged meat sales by Q4 2025 [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] Group 2: U.S. Market Performance - The momentum in the U.S. market continues, with a reduction in hog farming capacity to 11.5 million heads aiding in margin improvement [1] - Favorable pork prices, projected to increase by 9% in 2025, along with lower feed costs, are expected to support double-digit growth in operating profit for Q4 [1] Group 3: Financial Projections - Based on improved profit outlooks, the company has raised its earnings forecast for FY2026 by 2% and increased the target price to HKD 10.8, maintaining a "Buy" rating [1]

Financial Performance - The company's revenue for the first three quarters of 2025 reached $20477 million, an increase of 8.5% year-over-year[12] - EBITDA for the first three quarters of 2025 was $2496 million, up 10.7% compared to the same period in 2024[12] - Operating profit for the first three quarters of 2025 amounted to $1926 million, representing a 7.3% increase year-over-year[12] - Profit attributable to owners of the company for the first three quarters of 2025 was $1168 million, an 8.0% increase compared to the first three quarters of 2024[12] - Basic earnings per share for the first three quarters of 2025 were $0.091, an 8.0% increase year-over-year[12] Operational Data - Packaged meat sales volume for the first three quarters of 2025 was 2231 thousand metric tons, a decrease of 2.2% year-over-year[11] - Pork sales volume for the first three quarters of 2025 was 2967 thousand metric tons, an increase of 8.4% year-over-year[11] - The number of slaughtered hogs in China increased by 1.8% to 530 million heads in the first three quarters of 2025[25] - The number of slaughtered hogs in the U.S decreased by 1.3% to 81.7 million heads in Jan-Aug 2025[25] Market Overview - In the first three quarters of 2025, the average hog price in China was RMB 15.1 per kg, a decrease of 10.7% year-over-year[25] - In the U.S, the average hog price was $1.60 per kg, up 13.2% year-over-year[25]