Goldman Sachs has released a research report indicating that WH Group (00288)'s subsidiary, Smithfield, has updated its business outlook, leading to a reduction in the guidance for third-quarter adjusted operating profit. Based on the midpoint, this could represent a year-on-year decline of 53%.

In light of these developments, the bank has revised its earnings forecasts for WH Group, now expecting the company's operating profit for the third quarter of this year to fall by 24% year-on-year, with the fourth quarter expected to remain flat year-on-year. This compares to previous estimates of a 10% decline and a 4% increase, respectively.

After incorporating the latest U.S. business projections, Goldman Sachs has trimmed its operating profit forecasts for WH Group for the 2026 to 2028 period by 3% to 5%. Consequently, the target price has been lowered from HK$10.9 to HK$10.1, while maintaining a "Buy" rating.