WH Group Limited is the world’s top pork processor by volume. Profitable Growth has improved since the company went public in 2014, after a really poor performance in 2013. Learn more at: http://becomeabetterinvestor.net/blog/get-piggy-with-it/

1. Presented by: Dr. Andrew Stotz, CFA
WH Group Limited

2. 216 October 2016
WH Group Limited (288 HK)
Sources: A. Stotz Investment Research, company data, Thomson Reuters
 WHG is the world’s largest pork producer. Just over half of its revenue and nearly all its
profit is derived from packaged meat, including bacon, sausage, and ham, while the rest is
mainly fresh meat. It is involved in the entire pork chain including hog production, which
accounts for 3% of sales
 Its Chinese subsidiary, Shuanghui Development is Asia’s largest animal protein company
by production capacity. Smithfield, its US subsidiary, is the US’ largest pork producer, and its
European arm, Campofrio is Europe’s largest packaged meat producer
 In 2015, it produced 19m hogs, of which 16m were in the US. A total of 48m hogs were
processed for meat. WHG’s total annual production capacity of packaged meat is above 4m
tonnes
 While China is the biggest consumer of pork globally, its pork processing sector is
underdeveloped and fragmented, unlike that of the US, which is highly efficient. So, WHG
can leverage its size to take market share with its lower-cost pork products in China
Revenue breakdown, by segment 1H16 (Others 1%) Revenue by geography 1H16
Packaged meat 52% Fresh meat 44% Hog production 3%
US 56%
China
37%
Europe 7%
Stock information:
Name: WH Group Ltd. (HK)
Ticker: 288 HK
Price (HKD): 6.68
Mcap: US$12,612m
3MADTO: US$28m
Beta: 0.4x
Sector: Consumer Staples
Industry: Food Beverage &
Tobacco
Major shareholders:
36% Rise Grand Group Ltd.
20% CDH Investments
Management (Hong Kong) Ltd.
34% Free float
Background: WH Group Limited is the world’s top pork processor by
volume. It also makes and sells fresh pork, bacon, ham, sausage, and other
packaged meat products. The company produces and markets the majority
of its meat products in the US and China, and also sells into the major
markets of Europe.
50
70
90
110
130
-
2
4
6
8
Oct-13 Jul-14 Apr-15 Jan-16 Oct-16
288 HK (LHS)
Price relative to local index
(HKD) (%)

3. 316 October 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Background: WH Group Limited is the world’s top pork
processor by volume.
It also makes and sells fresh pork, bacon, ham, sausage,
and other packaged meat products.
The company produces and markets the majority of its
meat products in the US and China, and also sells into the
major markets of Europe.
WH Group Limited (288 HK)

4. 416 October 2016
Stock information:
Name: WH Group Ltd. (HK)
Ticker: 288 HK
Price (HKD): 6.68
Mcap: US$12,612m
3MADTO: US$28m
Beta: 0.4x
Sector: Consumer Staples
Industry: Food Beverage &
Tobacco
Major shareholders:
36% Rise Grand Group Ltd.
20% CDH Investments
Management (Hong Kong) Ltd.
34% Free float
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
WH Group Limited (288 HK)
50
70
90
110
130
-
2
4
6
8
Oct-13 Jul-14 Apr-15 Jan-16 Oct-16
288 HK (LHS)
Price relative to local index
(HKD) (%)

5. 516 October 2016
WH Group Limited (288 HK)
Sources: A. Stotz Investment Research, company data, Thomson Reuters
 WHG is the world’s largest pork producer. Just over half of its revenue and nearly all its
profit is derived from packaged meat, including bacon, sausage, and ham, while the rest is
mainly fresh meat. It is involved in the entire pork chain including hog production, which
accounts for 3% of sales
 Its Chinese subsidiary, Shuanghui Development is Asia’s largest animal protein company
by production capacity. Smithfield, its US subsidiary, is the US’ largest pork producer, and its
European arm, Campofrio is Europe’s largest packaged meat producer
 In 2015, it produced 19m hogs, of which 16m were in the US. A total of 48m hogs were
processed for meat. WHG’s total annual production capacity of packaged meat is above 4m
tonnes
 While China is the biggest consumer of pork globally, its pork processing sector is
underdeveloped and fragmented, unlike that of the US, which is highly efficient. So, WHG
can leverage its size to take market share with its lower-cost pork products in China
Revenue breakdown, by segment 1H16 (Others 1%) Revenue by geography 1H16
Packaged meat 52% Fresh meat 44% Hog production 3%
US 56%
China
37%
Europe 7%
Stock information:
Name: WH Group Ltd. (HK)
Ticker: 288 HK
Price (HKD): 6.68
Mcap: US$12,612m
3MADTO: US$28m
Beta: 0.4x
Sector: Consumer Staples
Industry: Food Beverage &
Tobacco
Major shareholders:
36% Rise Grand Group Ltd.
20% CDH Investments
Management (Hong Kong) Ltd.
34% Free float
Background: WH Group Limited is the world’s top pork processor by
volume. It also makes and sells fresh pork, bacon, ham, sausage, and other
packaged meat products. The company produces and markets the majority
of its meat products in the US and China, and also sells into the major
markets of Europe.
50
70
90
110
130
-
2
4
6
8
Oct-13 Jul-14 Apr-15 Jan-16 Oct-16
288 HK (LHS)
Price relative to local index
(HKD) (%)

6. 616 October 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 WHG is the world’s largest pork producer
 Just over half of its revenue and nearly all its
profit is derived from packaged meat, including
bacon, sausage, and ham, while the rest is mainly
fresh meat
 It is involved in the entire pork chain including
hog production, which accounts for 3% of sales
WH Group Limited (288 HK)

7. 716 October 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 Its Chinese subsidiary, Shuanghui Development is
Asia’s largest animal protein company by
production capacity
 Smithfield, its US subsidiary, is the US’ largest
pork producer, and its European arm, Campofrio
is Europe’s largest packaged meat producer
WH Group Limited (288 HK)

8. 816 October 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 In 2015, it produced 19m hogs, of which 16m
were in the US
 A total of 48m hogs were processed for meat
 WHG’s total annual production capacity of
packaged meat is above 4m tons
WH Group Limited (288 HK)

9. 916 October 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 While China is the biggest consumer of pork
globally, its pork processing sector is
underdeveloped and fragmented, unlike that of
the US, which is highly efficient
 So, WHG can leverage its size to take market
share with its lower-cost pork products in China
WH Group Limited (288 HK)

10. 1016 October 2016
WH Group Limited (288 HK)
Sources: A. Stotz Investment Research, company data, Thomson Reuters
 WHG is the world’s largest pork producer. Just over half of its revenue and nearly all its
profit is derived from packaged meat, including bacon, sausage, and ham, while the rest is
mainly fresh meat. It is involved in the entire pork chain including hog production, which
accounts for 3% of sales
 Its Chinese subsidiary, Shuanghui Development is Asia’s largest animal protein company
by production capacity. Smithfield, its US subsidiary, is the US’ largest pork producer, and its
European arm, Campofrio is Europe’s largest packaged meat producer
 In 2015, it produced 19m hogs, of which 16m were in the US. A total of 48m hogs were
processed for meat. WHG’s total annual production capacity of packaged meat is above 4m
tonnes
 While China is the biggest consumer of pork globally, its pork processing sector is
underdeveloped and fragmented, unlike that of the US, which is highly efficient. So, WHG
can leverage its size to take market share with its lower-cost pork products in China
Revenue breakdown, by segment 1H16 (Others 1%) Revenue by geography 1H16
Packaged meat 52% Fresh meat 44% Hog production 3%
US 56%
China
37%
Europe 7%
Stock information:
Name: WH Group Ltd. (HK)
Ticker: 288 HK
Price (HKD): 6.68
Mcap: US$12,612m
3MADTO: US$28m
Beta: 0.4x
Sector: Consumer Staples
Industry: Food Beverage &
Tobacco
Major shareholders:
36% Rise Grand Group Ltd.
20% CDH Investments
Management (Hong Kong) Ltd.
34% Free float
Background: WH Group Limited is the world’s top pork processor by
volume. It also makes and sells fresh pork, bacon, ham, sausage, and other
packaged meat products. The company produces and markets the majority
of its meat products in the US and China, and also sells into the major
markets of Europe.
50
70
90
110
130
-
2
4
6
8
Oct-13 Jul-14 Apr-15 Jan-16 Oct-16
288 HK (LHS)
Price relative to local index
(HKD) (%)

11. 1116 October 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Revenue breakdown, by segment 1H16 (Others 1%)
Packaged meat 52% Fresh meat 44% Hog production 3%

12. 1216 October 2016
US 56%
China
37%
Europe 7%
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Revenue by geography 1H16

14. 1416 October 2016
WHG: Leadership
Sources: A. Stotz Investment Research, company data, FactSet
ChairmanCEO
2012 2013 2014 2015 Past 12 months
Long Wan
Nov 2010 – Present
Long Wan
Oct 2013 – Present
Zhijun Yang
Jan 2012 – Oct 2013

15. 1516 October 2016
'12 '13 '14 '15 PTM
2 10 4 5 4
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
3 10 5 5 4 1 10 1 8 2
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
4 6 5 5 4 4 10 5 5 4 3 1 1 9 9 1 10 1 5 2
Benchmarked against 590 large Cons. Staples companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth
improved in the IPO year
2014, from worst in 2013
Ranks better than 354 of
590 large Cons. Staples
WHG: A. Stotz Profitable Growth
CEO, 2013 – Present
Long Wan
CEO, 2012 – 2013
Zhijun Yang

16. 1616 October 2016
'12 '13 '14 '15 PTM
2 10 4 5 4
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
3 10 5 5 4 1 10 1 8 2
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
4 6 5 5 4 4 10 5 5 4 3 1 1 9 9 1 10 1 5 2
Benchmarked against 590 large Cons. Staples companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth
improved in the IPO year
2014, from worst in 2013
Ranks better than 354 of
590 large Cons. Staples
Profitability is above
average, and Growth has
been volatile
WHG: A. Stotz Profitable Growth
CEO, 2013 – Present
Long Wan
CEO, 2012 – 2013
Zhijun Yang

17. 1716 October 2016
'12 '13 '14 '15 PTM
2 10 4 5 4
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
3 10 5 5 4 1 10 1 8 2
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
4 6 5 5 4 4 10 5 5 4 3 1 1 9 9 1 10 1 5 2
Benchmarked against 590 large Cons. Staples companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth
improved in the IPO year
2014, from worst in 2013
Ranks better than 354 of
590 large Cons. Staples
Profitability is above
average, and Growth has
been volatile
Sales growth has been
really poor since 2015
Margin change is now
back in green
WHG: A. Stotz Profitable Growth
CEO, 2013 – Present
Long Wan
CEO, 2012 – 2013
Zhijun Yang

18. 1816 October 2016
 Do YOU want to see the Profitable Growth rank
for a company in YOUR portfolio?
 Leave a comment below with company name
and country of listing…and I’ll post it if I have it