Goldman Sachs has released a research note indicating that WH Group (HK: 00288) reported an 11% year-on-year decline in overall operating profit for the second quarter, which came in 2% below the firm's projections. The investment bank has made minor adjustments to its core earnings forecasts for the 2026 to 2028 period, with revisions within a 2% range, to account for weaker fresh pork sales and profitability in China, subdued overseas consumer sentiment, and potential impacts from raw material costs. Despite these headwinds, Goldman Sachs maintains its "Buy" rating on the stock, though it has trimmed the target price from HK$11.1 to HK$10.9, based on a sum-of-the-parts valuation methodology.

In the report, the bank highlighted that WH Group declared an interim dividend of HK$0.20 per share for the first half of the year, translating to a payout ratio of approximately 43%. Management has reiterated its commitment to achieving a full-year payout ratio of at least 50%. Meanwhile, Shuanghui Development (SZ: 000895) has suspended its interim dividend due to increased working capital requirements stemming from higher frozen product and raw material inventories in the low hog price environment. However, management has affirmed that its long-term philosophy of returning value to shareholders remains unchanged.