GLONGHUI, April 24 | CCB International released a research report showing that Wanzhou's first-quarter performance was strong, with net profit adjusted for biofair value rising 139.7% year-on-year to US$465 million; revenue falling 8.3% to US$6.181 billion; and operating margin rising 2.7 percentage points to 8.1%. The bank expects the group's US upstream business to turn a loss into a profit in the next quarter. From a loss of $62 million in the first quarter to a profit of $5 million, the operating margin for the second quarter is expected to be 6.6%. The bank also expects that packaged meat sales will increase quarterly in the Chinese business, supported by the expansion of sales points in the 2024 fiscal year. Furthermore, the group's overall operating margin for the second quarter will record an improvement of 8%. CCB International raised Wanzhou's earnings estimates by 7.1% and 11.3% for FY2024 and FY25 respectively to reflect the Group's strong performance in the first quarter and the expected good operating profit margins for its business in the US and China. As a result, the target price was raised from HK$5.6 to HK$6 accordingly, and the “outperforming the market” rating was renewed. The bank pointed out that the group is considering splitting off its Smithfield Foods and re-listing it in the US, which will help increase the company's profit visibility.