To The Moon

$WH GROUP(00288)$

WH Group: The Quiet Porky Giant Powering Asia’s Protein Future

Pork is not just another food category in East Asia. It is a cultural staple, a daily necessity, and the undisputed king of protein consumption. Decades of economic growth, changing lifestyles, and globalized food choices have failed to dethrone pork from its dominant position. Chicken and beef have grown, but they have not replaced pork. Consumption data continues to confirm that pork remains firmly in pole position across China and neighboring markets. Even exports of Asian pork products have expanded in recent years, reinforcing the global relevance of this industry.

Every major industry is shaped by crises, and pork production is no exception. Past outbreaks such as African swine fever forced producers and regulators to confront uncomfortable realities. The result was a structural upgrade of hygiene standards, biosecurity systems, and regulatory oversight. Over the past decade, China has dramatically tightened supervision of pork production, farm licensing, and processing standards. The probability of another epidemic spreading on the catastrophic scale seen twenty years ago is materially lower today. The industry is simply more professional, more consolidated, and more resilient.

Demand, meanwhile, has not weakened. Consumption remains high, and demographic data suggests younger generations continue to consume pork at levels comparable to their parents. Pork is not a fading habit; it is embedded in everyday cuisine. This creates a rare combination for investors: a mature industry with stable demand and improving structural quality.

Within this landscape, WH Group stands at the top.

WH Group is the largest pork producer in Asia and one of the largest meat companies in the world. In 2024, the company generated nearly US$26 billion in revenue, with trailing-twelve-month revenue estimated around US$27–28 billion. These numbers place WH Group firmly among the global heavyweights of protein production.

Scale matters in commodity-based industries. Large operators enjoy purchasing power, cost advantages, logistics efficiency, and stronger bargaining positions with retailers. WH Group’s footprint extends far beyond China through its majority ownership of Henan Shuanghui and its full ownership of Smithfield Foods in the United States. This gives the group exposure to both the world’s largest pork-consuming market and one of the most advanced meat-processing markets.

Geographic diversification smooths earnings and reduces dependence on any single economy. It also provides a natural hedge against regional cycles in pork prices and feed costs.

Profitability remains solid. WH Group’s Return on Equity is currently around 15% on a trailing twelve-month basis, above its own long-term average of roughly 13% and better than many consumer staples peers. In capital-intensive, low-growth industries, sustained mid-teens ROE is a sign of operational discipline and effective capital allocation.

The company reported approximately HKD 12.7 billion in net income over the most recent trailing twelve months. Despite fluctuations in commodity prices and currency movements, WH Group continues to produce substantial absolute earnings. This is not a fragile business model. It is a cash-generating machine tied to essential daily consumption.

Valuation adds another layer of appeal. At around HKD 8.80 per share, WH Group trades near 1.2 times book value. This is a restrained multiple for a global industry leader with entrenched market positions. In contrast, many popular growth stocks trade at several times book value while depending on optimistic future assumptions. WH Group’s valuation reflects realism, not hype.

Dividends are the final ingredient.

WH Group paid HK$0.30 per share in October 2025 and has indicated an upcoming dividend of HK$0.40 per share expected around May 2026. At current prices, this translates into a forward yield in the range of 6.5% to 7%. That level of income is difficult to find among large-cap consumer staples companies with global operations.

This makes WH Group particularly attractive for investors seeking steady cash flow, portfolio diversification away from U.S. centric dividend stocks, and exposure to an essential food category with durable demand.

Pork is not a fashion. It is not a cycle-driven luxury. It is a staple protein consumed daily by hundreds of millions of people. WH Group controls a dominant share of this reality.

Scale. Diversification. Solid profitability. Conservative valuation. Strong dividends.

For long-term investors who value cash generation and resilience over storytelling and hype, WH Group represents a grounded, income-producing cornerstone. In a world full of noisy speculation, sometimes the most powerful investments are the ones quietly feeding the planet.

@Spiders  @koolgal  @Tiger John Nz  @泱汐  @小虎香港情報科  @ShenGuang  @Shernice軒嬣 2000