Citi believes that the target PE ratio for WH Group's mainland business is discounted by 30% for its A-share dining stocks, mainly due to the risk in its upstream fresh pork business.
According to The Economic Information Daily app, Citigroup released a research report stating that the target price of WH Group (00288) has been raised from 6.7 Hong Kong dollars to 7.1 Hong Kong dollars, reflecting a revaluation in the A-share market, maintaining a "buy" rating. The new target price is mainly based on the company's higher PE ratio for its mainland business this year at 14 times, while its overseas business maintains the same PE ratio at 10 times. The bank points out that the target PE ratio for WH Group's mainland business is discounted by 30% for its A-share dining stocks, mainly because of the risk in its upstream fresh pork business.
