[ET Net News Agency, 9 December 2019] China announced last Friday that it will waive
import tariffs for some soybean and pork shipments from the US. BofA Global Research views
it as a positive event to WH Group (00288), though it believes the key thing to watch is
whether China and the US can reach the Phase-1 trade deal.
The research house expects this could bring the total tariff rate on US pork down from
72% to 37%. Over the past 1.5 years, China has increased tariffs three times on US pork
(25% in April 2018, 25% in June 2019 and 10% in September 2019).
BofA believes the latest move could serve as a gesture of goodwill from China on the
negotiation table. It could also help to contain China's pork price rally (on African
Swine Fever) before the Chinese new year.
BofA maintained its "buy" rating on WH, with a target price of HK$9.8. It expects the
solid earnings recovery momentum seen in 3Q to continue into the coming 2-3 quarters. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00288 WH GROUP
Nominal 
5.390 -0.020 (-0.370%) Others
09/12/2019 14:58
{I-bank focus}WH Group (00288) seen to report solid earnings
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