Morgan Stanley resumes coverage of WH Group's rating with an overweight target price of HK$7.5

Jinshi data news on February 24th, Morgan Stanley published a report pointing out that WH Group (00288.HK) is strategically shifting towards promoting the profitability of its various business segments to mitigate the Fluctuation of its main market commodities cycle, and improving profit margins will be the focus of this year. The bank resumed coverage of WH Group, with a rating of overweight and a target price of 7.5 yuan. The report pointed out that WH Group is moving towards a healthier upstream business by streamlining its US pork production capacity, with a focus on further improving pricing and cost control for packaged meat in the US business. Despite the pressure from inflation, the profitability of packaged meats can still improve year-on-year in the fourth quarter of last year due to the control of logistics costs and higher average selling prices. With relatively stable demand, the company is expected to continue to focus on pricing and cost control, aiming to achieve stable rise in the business segment this year.