ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Consumer Non-Durables

WH Group Ltd. (HK)

Company Background

China's WH Group is the world's largest pork producer. It engages in production and distribution of raw pork and meat products, as well as pig farming. Its production bases in China, the U.S. and Europe provide meat to the Chinese market, the world's largest pork consumer.

Its origins can be traced back to a meat processing plant built in Henan province in April 1969. The success of its first brand sausages, released in February 1992, helped the company to expand its business. In the same year, the company with investors from six countries founded Shuanghui International, the predecessor of WH Group.

It built a sales office in Japan in 2011 and changed to its current name in January 2014. It has meat processing plants in 13 provinces in China, and four plants are under construction. It processes 4 million tons of pork each year.

It has expanded its international network. In September 2013, the company acquired Smithfield Foods, the largest pork processing company in the U.S., for $7.1 billion. In Asia, its subsidiary Henan Shuanghui Investment & Development supplies meat to Japan, Singapore and the Philippines, as well as China.

Business Summary

WH Group Ltd. is an investment holding company, which engages in the production and sale of packaged meats, fresh pork and hog products. It operates its business through the following segments: Packaged Meat Products, Fresh Pork and Hog Production. The Packaged Meat Products segment represents production, wholesale, and retail sales of low temperature and high temperature meat products. The Fresh Pork segment engages in the hog slaughtering, wholesale, and retail sales of fresh and frozen meat. The Hog Production segment involves hog farming. The company also engages in the slaughtering and sales of poultry, sales of ancillary products and services such as provision of logistics services, sales of flavoring ingredients, internally-produced packaging materials, imported meat products as well as retail business, and biopharmaceuticals. WH Group was founded on March 2, 2006 and is headquartered in Hong Kong.

Financial Highlights

Dec 2020 HKDUSD
Revenue198,468.15M25,588.99M
Gross Profit34,785.63M4,484.99M
Operating income13,223.97M1,704.99M
Income before tax10,075.03M1,298.99M
Net income6,421.96M827.99M
EBITDA18,203.32M2,346.99M
Diluted EPS0.430.05
Dividends Per Share0.170.02
Total Assets145,113.30M18,715.00M
Total liabilities59,596.09M7,686.00M
Total equity77,577.26M10,005.00M
Operating cash flow18,373.95M2,368.99M
Currency in HKDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 167,156.74M 174,395.44M 177,167.70M 188,851.77M 198,468.15M
Gross Profit 32,586.79M 33,594.83M 36,750.24M 40,923.23M 34,785.63M
Operating income 12,629.51M 12,265.89M 14,319.19M 18,506.73M 13,223.97M
Income before tax 12,963.30M 11,525.57M 10,784.46M 15,960.29M 10,075.03M
Net income 8,041.90M 8,829.26M 7,390.80M 11,478.56M 6,421.96M
EBITDA 15,517.15M 15,297.29M 17,744.20M 23,058.98M 18,203.32M
Diluted EPS 0.56 0.60 0.50 0.77 0.43
Dividends Per Share 0.26 0.27 0.20 0.31 0.17
Total Assets 105,528.12M 119,276.36M 119,773.39M 134,657.88M 145,113.30M
Total liabilities 50,899.42M 55,002.52M 53,787.63M 60,931.87M 59,596.09M
Total equity 48,968.89M 58,199.79M 60,646.14M 67,663.99M 77,577.26M
Operating cash flow 14,492.50M 11,930.80M 9,922.33M 11,509.90M 18,373.95M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 21,533.99M 22,378.99M 22,604.99M 24,102.99M 25,588.99M
Gross Profit 4,197.99M 4,310.99M 4,688.99M 5,222.99M 4,484.99M
Operating income 1,626.99M 1,573.99M 1,826.99M 2,361.99M 1,704.99M
Income before tax 1,669.99M 1,478.99M 1,375.99M 2,036.99M 1,298.99M
Net income 1,035.99M 1,132.99M 942.99M 1,464.99M 827.99M
EBITDA 1,998.99M 1,962.99M 2,263.99M 2,942.99M 2,346.99M
Diluted EPS 0.07 0.07 0.06 0.09 0.05
Dividends Per Share 0.03 0.03 0.02 0.04 0.02
Total Assets 13,610.99M 15,257.99M 15,298.00M 17,282.00M 18,715.00M
Total liabilities 6,564.99M 7,035.99M 6,870.00M 7,820.00M 7,686.00M
Total equity 6,315.99M 7,444.99M 7,746.00M 8,684.00M 10,005.00M
Operating cash flow 1,866.99M 1,530.99M 1,265.99M 1,468.99M 2,368.99M

Valuation Measures

Dec 2020
PER14.91
ROA4.59%
ROE8.84%
Operating margin6.66%
Profit margin3.23%

Key executives

  • Executive Chairman & Chief Executive Officer: Long Wan
  • CFO, Executive Director & Executive Vice President: Gordon Lijun Guo
  • Strategy, Operations & Risks: Luis Chein
  • Secretary & Chief Legal Officer: Ho Chau

Shareholders

  • Rise Grand Group Ltd. (34.1%)
  • Mondrian Investment Partners Ltd. (6.0%)
  • WAN LONG (2.6%)
  • The Vanguard Group, Inc. (1.3%)
  • BlackRock Fund Advisors (1.2%)
  • Wells Capital Management, Inc. (1.1%)
  • Baillie Gifford & Co. (0.8%)
  • Columbia Management Investment Advisers LLC (0.7%)
  • Invesco Advisers, Inc. (0.7%)
  • Matthews International Capital Management LLC (0.6%)

Contact Details

  • Website:http://www.wh-group.com
  • Address: Unit 7602B-7604A, Level 76, International Commerce, Hong Kong, Hong Kong
  • Phone: +852.2868.2828

Related Companies

  • Animex Kutno Sp zoo
  • Kunming Shuanghui Food Co., Ltd.
  • WH Group Ltd.
  • Shuanghui International Co. Ltd.
  • Shanghai Shuanghui Dachang Co., Ltd.
  • Glorious Link International Corp.
  • Rotary Vortex Ltd.
  • Henan Shuanghui Investment & Development Co., Ltd.
  • Smithfield Foods, Inc.

Competitors

  • JBS S.A.
  • Beyond Meat, Inc.
Last Updated on 3 Aug, 2021

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more