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Consumer Non-Durables

WH Group Ltd. (HK)

  • 6.22 HKD
  • +0.01
  • +0.16%
  • Hong Kong
    Nov 14, 2018
  • Ticker
    HKG(288)
  • Prev. close
    6.21
  • Market cap (HKD)
    91,134.75M
  • Market cap (USD)
    11,635.11M
  • Shares
    14,675.48M

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 2017 HKDUSD
Revenue174,395.44M22,378.99M
Gross Profit33,594.83M4,310.99M
Operating income12,265.89M1,573.99M
Income before tax11,525.57M1,478.99M
Net income8,829.26M1,132.99M
EBITDA15,297.29M1,962.99M
Diluted EPS0.600.07
Dividends Per Share0.270.03
Total Assets119,276.36M15,257.99M
Total liabilities55,002.52M7,035.99M
Total equity58,199.79M7,444.99M
Operating cash flow11,930.80M1,530.99M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 87,285.49M 172,487.39M 164,424.32M 167,156.74M 174,395.44M
Gross Profit 13,744.77M 30,553.44M 32,072.39M 33,712.34M 33,594.83M
Operating income 5,957.10M 12,585.84M 12,055.25M 14,244.10M 12,265.89M
Income before tax 1,233.30M 10,523.10M 9,985.31M 12,963.30M 11,525.57M
Net income -2,039.99M 5,940.08M 6,093.52M 8,041.90M 8,829.26M
EBITDA 7,345.54M 15,431.81M 15,086.50M 17,131.74M 15,297.29M
Diluted EPS -0.13 0.47 0.42 0.56 0.60
Dividends Per Share -- 0 0.12 0.26 0.27
Total Assets 109,762.08M 114,151.39M 110,834.89M 105,528.12M 119,276.36M
Total liabilities 85,361.03M 67,188.02M 58,815.88M 50,899.42M 55,002.52M
Total equity 17,639.78M 39,782.38M 44,664.11M 48,968.89M 58,199.79M
Operating cash flow 5,553.75M 12,205.86M 12,683.20M 14,492.50M 11,930.80M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 11,252.99M 22,243.00M 21,209.00M 21,533.99M 22,378.99M
Gross Profit 1,771.99M 3,940.00M 4,137.00M 4,342.99M 4,310.99M
Operating income 767.99M 1,623.00M 1,555.00M 1,834.99M 1,573.99M
Income before tax 158.99M 1,357.00M 1,288.00M 1,669.99M 1,478.99M
Net income -262.99M 766.00M 786.00M 1,035.99M 1,132.99M
EBITDA 946.99M 1,990.00M 1,946.00M 2,206.99M 1,962.99M
Diluted EPS -0.01 0.06 0.05 0.07 0.07
Dividends Per Share -- 0 0.01 0.03 0.03
Total Assets 14,156.00M 14,720.00M 14,300.99M 13,610.99M 15,257.99M
Total liabilities 11,009.00M 8,664.00M 7,588.99M 6,564.99M 7,035.99M
Total equity 2,275.00M 5,130.00M 5,762.99M 6,315.99M 7,444.99M
Operating cash flow 715.99M 1,574.00M 1,636.00M 1,866.99M 1,530.99M

Valuation Measures

Dec 2017
PER14.52
ROA7.85%
ROE16.47%
Operating margin7.03%
Profit margin5.06%

Key executives

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

Shareholders

  • Rise Grand Group Ltd. (35.9%)
  • Mondrian Investment Partners Ltd. (6.0%)
  • CDH Investments Management (Hong Kong) Ltd. (3.2%)
  • WAN LONG (2.4%)
  • OppenheimerFunds, Inc. (2.3%)
  • Capital Research & Management Co. (World Investors) (1.6%)
  • The Vanguard Group, Inc. (1.4%)
  • BlackRock Fund Advisors (1.1%)
  • Norges Bank Investment Management (0.9%)
  • APG Asset Management NV (0.9%)

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
Last Updated on 14 Nov, 2018

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