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Consumer Non-Durables

WH Group Ltd. (HK)

  • 7.78 HKD
  • -0.07
  • -0.89%
  • Hong Kong
    Jul 19, 2019
  • Ticker
    HKG(288)
  • Prev. close
    7.85
  • Market cap (HKD)
    115,478M
  • Market cap (USD)
    14,794M
  • Shares
    14,710.50M

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 2018 HKDUSD
Revenue177,167.70M22,604.99M
Gross Profit36,750.24M4,688.99M
Operating income14,319.19M1,826.99M
Income before tax10,784.46M1,375.99M
Net income7,390.80M942.99M
EBITDA17,744.20M2,263.99M
Diluted EPS0.500.06
Dividends Per Share0.200.02
Total Assets119,773.39M15,298.00M
Total liabilities53,787.63M6,870.00M
Total equity60,646.14M7,746.00M
Operating cash flow9,922.33M1,265.99M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 172,487.39M 164,424.32M 167,156.74M 174,395.44M 177,167.70M
Gross Profit 25,264.75M 31,576.23M 32,586.79M 33,594.83M 36,750.24M
Operating income 7,297.15M 11,559.08M 12,629.51M 12,265.89M 14,319.19M
Income before tax 10,523.10M 9,985.31M 12,963.30M 11,525.57M 10,784.46M
Net income 5,940.08M 6,093.52M 8,041.90M 8,829.26M 7,390.80M
EBITDA 10,143.12M 14,590.34M 15,517.15M 15,297.29M 17,744.20M
Diluted EPS 0.47 0.42 0.56 0.60 0.50
Dividends Per Share 0 0.12 0.26 0.27 0.20
Total Assets 114,151.39M 110,834.89M 105,528.12M 119,276.36M 119,773.39M
Total liabilities 67,188.02M 58,815.88M 50,899.42M 55,002.52M 53,787.63M
Total equity 39,782.38M 44,664.11M 48,968.89M 58,199.79M 60,646.14M
Operating cash flow 12,205.86M 12,683.20M 14,492.50M 11,930.80M 9,922.33M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 22,243.00M 21,209.00M 21,533.99M 22,378.99M 22,604.99M
Gross Profit 3,258.00M 4,073.00M 4,197.99M 4,310.99M 4,688.99M
Operating income 941.00M 1,491.00M 1,626.99M 1,573.99M 1,826.99M
Income before tax 1,357.00M 1,288.00M 1,669.99M 1,478.99M 1,375.99M
Net income 766.00M 786.00M 1,035.99M 1,132.99M 942.99M
EBITDA 1,308.00M 1,882.00M 1,998.99M 1,962.99M 2,263.99M
Diluted EPS 0.06 0.05 0.07 0.07 0.06
Dividends Per Share 0 0.01 0.03 0.03 0.02
Total Assets 14,720.00M 14,300.99M 13,610.99M 15,257.99M 15,298.00M
Total liabilities 8,664.00M 7,588.99M 6,564.99M 7,035.99M 6,870.00M
Total equity 5,130.00M 5,762.99M 6,315.99M 7,444.99M 7,746.00M
Operating cash flow 1,574.00M 1,636.00M 1,866.99M 1,530.99M 1,265.99M

Valuation Measures

Dec 2018
PER11.97
ROA6.18%
ROE12.43%
Operating margin8.08%
Profit margin4.17%

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. (35.8%)
  • Mondrian Investment Partners Ltd. (4.9%)
  • WAN LONG (2.3%)
  • The Vanguard Group, Inc. (1.5%)
  • Capital Research & Management Co. (World Investors) (1.5%)
  • BlackRock Fund Advisors (1.2%)
  • Matthews International Capital Management LLC (0.9%)
  • APG Asset Management NV (0.9%)
  • Investec Asset Management Ltd. (0.8%)
  • Norges Bank Investment Management (0.8%)

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

  • Kunming Shuanghui Food Co., Ltd.
  • WH Group Ltd.
  • Shuanghui International Co. Ltd.
  • Glorious Link International Corp.
  • Henan Shuanghui Investment & Development Co., Ltd.
  • Smithfield Foods, Inc.

Competitors

  • Cherkizovo Group PJSC
  • Tyson Foods, Inc. Class A
  • Hormel Foods Corporation
  • Beyond Meat, Inc.
Last Updated on 19 Jul, 2019

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