[ET Net News Agency, 1 March 2021] UBS Global Research lifted its target price for WH
Group (00288) to HK$11.4 from HK$11 and reiterated its "buy" rating.
In the near term, the research house expects its earnings to recover helped by (1) a US
earnings recovery as the COVID-19 impact diminishes; and (2) margin expansion in China on
lower raw material prices.
In the long term, UBS expects the new US CEO to drive efficiency and margin improvements
in the US. UBS believes WH's current valuation is undemanding and expects the stock to
re-rate as its US business recovers.
UBS lowered its 2020 net profit forecast by 7%, to factor in a weak 4Q 2020 in the US
due to COVID and a one-off impairment cost; yet it raised its 2021/22 net profit forecasts
by 6-7% on increasing optimism of recovery. (KL)
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00288 WH GROUP
Nominal 
5.390 -0.020 (-0.370%) Research Report
01/03/2021 10:50
{I-bank focus}UBS lifts WH Group (00288) to HK$11.4
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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