UBS: Maintaining Wanzhou International's (00288) “Buy” rating and reducing the target price to HK$9.5

The Zhitong Finance App learned that UBS released a research report saying that excluding changes in bio-fair value, it is estimated that Wanzhou International (00288)'s operating profit for the second quarter fell 7% year on year to US$618 million, lower than market expectations, and operating profit from the North American, Chinese and European businesses all declined. The bank lowered Wanzhou's 2026 revenue and net profit forecasts by 1% and 5% respectively, and the target price was lowered from HK$11 to HK$9.5, maintaining a “buy” rating.

The report mentioned that Wanzhou's Smithfield lowered its FY2026 adjusted operating profit guidelines for all business segments; on the Chinese side, Wanzhou management expects a moderate recovery in pig prices in the second half of the year, packaged meat sales are expected to grow steadily in the third quarter, then supported by a low base, and the growth momentum has further accelerated since the fourth quarter.