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Daiwa lifts WH Group (00288) to HK$10.9
Daiwa Research lifted its target price for WH 
Group (00288) to HK$10.9 from HK$9.7, and maintained its "buy" rating.
  The research house said hog prices in China rose by 4% MoM in December on increased
demand for pork in winter. However, Daiwa expects pork to be one of the very few raw 
materials to see a YoY cost decline in China in 2018 amid abundant supply.
  It expects the US tax reforms to boost WH Group's net profit by 10-15% over 2018-19, and
the company's packaged meat margin to recover in 2018 from the trough in 2H 2017.
  Hence, Daiwa raised its 2018-19 EPS by 8-10%. In a best-case scenario where Smithfield's
standard effective tax rate is 21%, the research house would expect WH Group's net profit
to rise by 21% YoY in 2018 (versus 18% in its model).

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