Goldman Sachs has issued a research note updating its outlook on WH Group (00288) following a revised business status update from its subsidiary, Smithfield. The bank highlighted that Smithfield has lowered its third-quarter adjusted operating profit guidance, with the midpoint indicating a potential year-on-year decline of 53%.

In response to these developments, Goldman Sachs has recalibrated its earnings projections for WH Group, now anticipating a 24% year-on-year decrease in operating profit for the third quarter of this year, alongside a flat performance in the fourth quarter compared to the prior year. This marks a revision from the firm's earlier forecasts, which had predicted a 10% drop and a 4% increase for those respective periods.

After incorporating the latest U.S. business projections, the investment bank has trimmed its operating profit estimates for WH Group for the 2026 to 2028 period by 3% to 5%. Consequently, the target price has been reduced from HK$10.9 to HK$10.1, while the "Buy" rating remains unchanged.