On April 23, Wanzhou International (00288) rose nearly 6%. As of press release, it had risen 5.66% to HK$5.79, with a turnover of HK$1.96.

According to the news, Wanzhou International announced that in the first quarter of 2024, revenue was US$6.181 billion, a year-on-year decrease of 8.33%; profit attributable to company owners before biofair value adjustment was US$301 million, an increase of 73% over the previous year; and basic profit per share was 2.35 cents. The company said that the sharp increase in profit during the period was mainly due to the company's implementation of a series of reforms last year to rectify the Group's pig breeding operations. In line with the current favorable market conditions, the pork business in the US has improved markedly.

According to a recent research report from Damo, Wanzhou's vertically integrated operating strategy has placed the Group in a leading global position in the pork industry. In addition, considering Wanzhou's price-earnings ratio and corporate value multiples in 2024, the valuation is attractive compared to the compound annual profit growth rate of 46% compared to the 2023-2025 fiscal year. The bank mentioned that the Group's business in China will benefit from lower pig prices and an upgraded packaged meat product structure. As for the US business, the profit margin and sales volume of packaged meat are expected to increase in 2024.