WH Group (0288.HK)
Consumer · HKEX · Hong Kong
Fundamentals
Valuation and ratings
WH Group trades at HK$8.19, which is 113% below the HK$17.47 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 47 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 8.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About WH Group
WH Group Limited, an investment holding company, produces and sells packaged meats, pork, and hogs in China, North America, and Europe. It operates through Packaged Meats, Pork, and Others segments. The company is involved in production, wholesale, and retail sale of low temperature and high temperature meat products; hog farming, slaughtering, and wholesale and retail sale of fresh and frozen pork; slaughtering, production, and sale of poultry; and sale of ancillary products and services, such as logistics and supply chain management services, flavoring ingredients and natural casings, condiments, biological pharmaceutical materials, and packaging materials. It also engages in the operation of finance and property development companies, and a chain of retail food stores; and livestock breeding. The company was founded in 1958 and is headquartered in Kowloon, Hong Kong.
0288.HK passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is WH Group (0288.HK) undervalued?
Against our discounted cash flow estimate of HK$17.47, 0288.HK at HK$8.19 is 113% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 0288.HK's P/E ratio?
0288.HK trades at 8.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.