[ET Net News Agency, 14 November 2019] Daiwa Research raised its target price for WH
Group (00288) to HK$9.6 from HK$8 and upgraded its rating to "outperform" from "hold".
The research house met with WH's management on 13 November. Daiwa expects high pork
costs in China to likely sustain into 2020 but sees its 4Q packaged meat margin in China
to remain at 3Q levels on price hikes and low-cost inventory. It also expects US fresh
meat prices to continue their uptrend in 1H 2020, as indicated by US lean pork futures
prices.
Daiwa raised its 2019-21 EPS forecasts by 2-10%. (KL)