Goldman Sachs: Maintaining Wanzhou International's (00288) “Buy” rating and lowering the target price to HK$10.9

The Zhitong Finance App learned that Goldman Sachs released a research report saying that Wanzhou International (00288)'s overall operating profit for the second quarter fell 11% year on year, slightly lower than the bank's forecast of 2%. The bank fine-tuned its 2026-2028 core profit forecast to within 2% to reflect weak sales and profits of fresh pork in China, weak overseas consumer sentiment, and potential impact on raw material costs. The bank maintained a “buy” rating, and the target price was lowered from HK$11.1 to HK$10.9 based on the classification plus valuation method.

According to the report, Wanzhou International's interim dividend for the first half of the year was HK$0.2 per share, with a dividend payout ratio of about 43%. Management reiterated that the annual dividend ratio was at least 50%. Shuanghui Development (000895.SZ) suspended its interim dividend due to lower pig prices, increased inventory of frozen products and raw materials, and increased capital requirements. However, management stated that the concept of long-term returns to shareholders remained unchanged.