“《Big Banks》” Goldman Sachs cuts WH Group (00288.HK) target price to 11.1 yuan, expects operating profit to decline in the next quarter

Goldman Sachs published a research report forecasting that WH Group (00288.HK) -0.450 (-5.428%) will see short selling of $216 million, with a ratio of 31.198%. In the second quarter of this year, operating profit is expected to register a high single-digit year-on-year decline, dragging overall first-half performance to roughly flat year-on-year. The report predicts that in the second quarter, operating profit for its China business will fall 11% year-on-year. Hog production remains soft despite falling pig prices, although losses narrowed compared with the first quarter due to operational improvements.

In terms of international operations, US packaged meat faces rising beef and freight costs, but the commodity price environment for hog production remains supportive. In Europe, hog production business recorded a high double-digit year-on-year decline due to a high base, while packaged meat maintained strong double-digit growth.

Looking ahead to the second half, Goldman Sachs believes the mainland consumption environment remains a mix of good and bad factors, but expects WH Group’s China business to flexibly control the intensity of packaged meat promotion, and also believes the US business cost structure can improve. For its European hog business, losses are expected to narrow starting from the third quarter as pig prices stabilize.

Based on expectations of weaker second-quarter performance, Goldman Sachs cut its net profit forecasts for WH Group for 2026 to 2028 by 1% to 2%. The target price was reduced from HK$11.8 to HK$11.1, and the company is maintained at a “Neutral” rating. (gc/da) (Hong Kong stock quotes are delayed by at least fifteen minutes. Short selling data as of 2026-07-08 16:25.)

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