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 2022	HKD	USD
Revenue	220,318.64M	28,136.00M
Gross Profit	38,565.15M	4,925.00M
Operating income	15,739.28M	2,010.00M
Income before tax	16,663.28M	2,128.00M
Net income	10,727.77M	1,370.00M
EBITDA	22,003.67M	2,810.00M
Diluted EPS	0.83	0.10
Dividends Per Share	0.30	0.03
Total Assets	154,967.28M	19,855.00M
Total liabilities	73,405.55M	9,405.00M
Total equity	74,927.52M	9,600.00M
Operating cash flow	13,257.01M	1,693.00M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	177,167.70M	188,851.77M	198,468.15M	212,144.04M	220,318.64M
Gross Profit	36,750.24M	40,923.23M	34,785.63M	36,509.01M	38,565.15M
Operating income	14,319.19M	18,506.73M	13,223.97M	14,496.34M	15,739.28M
Income before tax	10,784.46M	15,960.29M	10,075.03M	12,949.54M	16,663.28M
Net income	7,390.80M	11,478.56M	6,421.96M	8,301.39M	10,727.77M
EBITDA	17,744.20M	23,058.98M	18,203.32M	19,758.55M	22,003.67M
Diluted EPS	0.50	0.77	0.43	0.58	0.83
Dividends Per Share	0.20	0.31	0.17	0.19	0.30
Total Assets	119,773.39M	134,657.88M	145,113.30M	151,333.97M	154,967.28M
Total liabilities	53,787.63M	60,931.87M	59,596.09M	75,452.59M	73,405.55M
Total equity	60,646.14M	67,663.99M	77,577.26M	68,202.03M	74,927.52M
Operating cash flow	9,922.33M	11,509.90M	18,373.95M	14,395.29M	13,257.01M

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	22,604.99M	24,102.99M	25,588.99M	27,293.00M	28,136.00M
Gross Profit	4,688.99M	5,222.99M	4,484.99M	4,697.00M	4,925.00M
Operating income	1,826.99M	2,361.99M	1,704.99M	1,865.00M	2,010.00M
Income before tax	1,375.99M	2,036.99M	1,298.99M	1,666.00M	2,128.00M
Net income	942.99M	1,464.99M	827.99M	1,068.00M	1,370.00M
EBITDA	2,263.99M	2,942.99M	2,346.99M	2,542.00M	2,810.00M
Diluted EPS	0.06	0.09	0.05	0.07	0.10
Dividends Per Share	0.02	0.04	0.02	0.02	0.03
Total Assets	15,298.00M	17,282.00M	18,715.00M	19,411.00M	19,855.00M
Total liabilities	6,870.00M	7,820.00M	7,686.00M	9,678.00M	9,405.00M
Total equity	7,746.00M	8,684.00M	10,005.00M	8,748.00M	9,600.00M
Operating cash flow	1,265.99M	1,468.99M	2,368.99M	1,852.00M	1,693.00M

Valuation Measures

Dec 2022
PER	5.42
ROA	7.00%
ROE	14.99%
Operating margin	7.14%
Profit margin	4.86%

Key executives

Chief Executive Officer & Executive Director: Gordon Lijun Guo
Chief Financial Officer & Vice President: Kam Yin Yan
Executive VP & CFO-Shuanghui Development: Song Tao Liu
Strategy, Operations & Risks: Luis Chein
Secretary & Chief Legal Officer: Ho Chau

Shareholders

Rise Grand Group Ltd. (39.1%)
Mondrian Investment Partners Ltd. (5.9%)
The Vanguard Group, Inc. (1.5%)
BlackRock Fund Advisors (1.4%)
FIL Investment Management (Hong Kong) Ltd. (1.2%)
Allspring Global Investments LLC (1.2%)
Dimensional Fund Advisors LP (0.9%)
Baillie Gifford & Co. (0.9%)
Columbia Management Investment Advisers LLC (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

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.
Henan Shuanghui Investment & Development Co., Ltd.
Smithfield Foods, Inc.

Competitors

Minerva S.A.
Grupo KUO SAB de CV Class B
Beyond Meat, Inc.

Last Updated on 2 Jun, 2023