Analysts at Jefferies have revised their financial forecasts for WH GROUP (00288), lowering net profit projections for 2026 through 2028 by 10%, 6%, and 7%, respectively. This adjustment follows a review of the company's anticipated second-quarter performance and primarily reflects a decrease in profit per ton for packaged meat products. Contributing factors include shifts in product mix and a narrowing price spread between pork and live hogs in China. Additionally, weak demand in the U.S. market is expected to result in a slight decline in profit margins per ton for packaged meats.

The firm maintains its 'Buy' recommendation on the stock. Jefferies estimates WH GROUP's second-quarter operating profit will reach $588 million, representing an 11.2% year-on-year decrease. The projected operating profit margin is 8.7%, with sales expected to decline by 0.7% to $6.8 billion.

Consequently, Jefferies has reduced its price target for WH GROUP from HK$12.4 to HK$11.66. This new target implies forward price-to-earnings ratios of approximately 12 times for the current year and 11 times for the following year.